What do you know about reverse mortgages?

[Anonymous]

After years of saying she wanted to sell her house and downsize to a senior apt, my mom has decided she wants to age in place, which is fine, except all of her cash is tied up in her house. I just want to think through her potentially needing an aid/caregiver to come to the house a few times a week. Does anyone know those costs? Does medicare cover any of it?

From the mortgage perspective for those who have BTDT, any pros/cons/pitfalls to share?

Her house is valued at $400-450k, and she has a $55k mortgage. How much will she be able to take out? Is it easy to get approved? Can you shop around? Why would someone be denied a mortgage? Are reverse mortgage rates similar to current regular mortgage rates? Is it better to do the mortgage now, while she is healthy and doesn't need the money?

Thanks

[Anonymous]

https://www.nytimes.com/2022/04/01/business/retirement-reverse-mortgages-home-equity.html

[Anonymous]

Anonymous wrote:After years of saying she wanted to sell her house and downsize to a senior apt, my mom has decided she wants to age in place, which is fine, except all of her cash is tied up in her house. I just want to think through her potentially needing an aid/caregiver to come to the house a few times a week. Does anyone know those costs? Does medicare cover any of it?

From the mortgage perspective for those who have BTDT, any pros/cons/pitfalls to share?

Her house is valued at $400-450k, and she has a $55k mortgage. How much will she be able to take out? Is it easy to get approved? Can you shop around? Why would someone be denied a mortgage? Are reverse mortgage rates similar to current regular mortgage rates? Is it better to do the mortgage now, while she is healthy and doesn't need the money?

Thanks

they’re a bad idea. My mother was about to do this til I found out and threatened the company. She had dementia and so was her POA. Her house was paid for and she was about to take a loan out against it. You may wanna post this in the real estate section not the health forum.