Negative-amortization loan unwise for 65-year-old

Borrower unlikely to earn 6% return on tapped home equity

DEAR BOB: What is your opinion on my pulling out as much equity as possible from my home by taking out a negative-amortization mortgage in order to have retirement income 10 years from now? I am 65 but still work, have good income and a good FICO (Fair Isaac Corp.) credit score. My son says "no." What do you think? --Carmen S. DEAR CARMEN: I think you have a very smart son. Why in the world would you take out a negative-amortization mortgage where you will owe more than you borrowed? That makes no sense. Purchase Bob Bruss reports online. If that mortgage costs you at least 6 percent interest in today's mortgage market, where can you invest that money to earn 6 percent after-tax with safety? You will probably be better off obtaining a reverse mortgage, which will give you a choice of a lump sum, lifetime monthly income, a credit line or any combination of those choices. That's a far wiser alternative than obtaining a negative-amortization mortgage. MAJOR MISTAKE GIVING...