I'm considering a reverse mortgage to pay for care expenses. What are the pros and cons?

A reverse mortgage can be a valuable tool for senior homeowners seeking funds, particularly for covering care expenses. However, it is important to consult a financial advisor to understand the implications and explore all your options. Here are some pros and cons to consider: Pros: Access to Cash: Provides immediate funds without requiring monthly mortgage payments. Retain Home Ownership: You retain the title to your home while living there. No Income Requirements: Qualification is based on home equity rather than income, making it accessible for many retirees. Flexible Use: Funds can be used for various expenses, including in-home care, medical bills, or other living expenses. Non-Recourse Loan: You or your heirs won’t owe more than the home’s value when the loan is repaid, even if the balance exceeds it. Cons: Decreased Equity: The loan reduces your home equity, affecting your estate and what you can leave to heirs. Costs and Fees: Upfront costs can be high, including origination fees, closing costs, and mortgage insurance. Eligibility Limits: The amount you can borrow depends on your age, home value, and current interest rates. Repayment Requirements: The loan must be repaid when you move out, sell the home, or pass away, which can put financial strain on heirs. Impact on Benefits: It may affect eligibility for specific government assistance programs like Medicaid.