Thinking About a Reverse Mortgage — Is It Worth Considering?

[KatraM935670]

I’m starting to think about retirement and wondering how a reverse mortgage actually works in real life. For someone who plans to stay in their home for many years, is it generally worth considering, or are the costs and interest a bigger downside than people realize? I’d also be interested in hearing from anyone who has actually used one—what surprised you the most?

[AngleS694104]

If you’re planning to stay in the home for many years, I think it’s worth considering, but I wouldn’t look at it as “free money.” You keep ownership and don’t have a required monthly mortgage payment, but interest and other costs get added to the balance over time, which can reduce the equity you eventually leave to your heirs. The longer you stay, though, the more those upfront costs can be spread out. I’d compare the actual numbers for your situation before deciding.