Reverse mortgages cost more than HELOCs and work best for people planning to stay in their homes long-term. Before taking one, check if your house is accessible, whether multiple stories are a problem, and if you can realistically age in place without regret.
The disadvantage of a reverse mortgage is the costs. So reverse mortgages cost more than a HELOC. You get a HELOC for free at the bank, but is it suitable for you? Are you on a fixed income? In 10 years, if you had a HELOC and you have an interest rate that's bouncing all over the place, and if you're on a fixed income, is that manageable for you? Is it suitable? Is it long-term? Those are the questions you want to ask. And also another question to ask is, is this the right home for you? Can you stay in this house indefinitely? Do you want to? Is it accessible? Is there two stories? 10 years from now, are you gonna regret being in this home for the rest of your life? And these are the questions I would ask my own family members who are pursuing a reverse mortgage, any of my clients. I ask them personally these questions because I don't want somebody taking something that's not suitable for them.
