How about the high fees that you hve to spend on a reverse mortgage?

A Reverse Mortgage can be a wonderful benefit to the borrower.  The main thing I have always articulated is that borrowers with Master Bedrooms upstairs should think about getting a home that is one level or main floor master.  Thinking about how the borrower can stay in the property forever makes the Reverse Mortgage a viable and welcomed product.  If they will need to sell in the near future, they may be better off to Sell now and take the equity direct to pay for care and living expenses.

Simon, good point.  The maximum you can charge on a reverse mortgage is 2.00 points.  And those are negotiable, thought most lenders stick with those fee's.  So the fee's are not usually any worse then a normal refinance.  The major difference is that most brokers I know soften the fee's by including a 1.00 YSP with 1 up front, where in a reverse mortgage it's two up front.

reverse mortgages can be a nice addition to senior citizens retirement portfolios. it creates a nice income flow for which you do not have to credit or income qualify.

Karl, while it is no doubt if you read my blog, I am a BIG proponent of reverse mortgages, I believe in correct facts, so an informed decision can be made.  Your very last statement is incorrect though....I did a blog about how many Reverse Mortgages are being foreclosed upon, and pulled up a week of LP's in my county.  Of the 61 for the week ZERO were reverse mortgages. BUT, they CAN be foreclosed upon, very EXTREMELY rare, but it can happen.  The three most likely reasons - 1) Not paying county property taxes (county & bank might foreclose) 2) not paying homeowners insurance 3) Not paying condo/HOA dues/fees.  Again, I repeat, these are VERY RARE, but it can be foreclosed upon.  FYI...