If you are elderly with no means of support other than a meager social security payment, then a reverse mortgage might be the way to go. The home is paid off, but expenses and taxes still must be met. And you must eat and pay for medicine that is not covered by medicare. The lender is now paying you the same money that you have paid all along to complete your mortgage. The amount you collect will never be the same as the amount you doled out over  these years. The advantage here is that you do not have to depend on others to help you pay the monthly bills. Home repairs can be taken care of from the proceeds of the reverse mortgage. You will get a check from the lender and use this to pay your property taxes and other taxes. First check out the company that is offering this reverse mortgage. Some include unwarranted and unnecessary fees. There are more pros and cons of reverse mortgages so first let us sum up some of those reverse mortgages pros and cons.

1. Receive flexible choices in payment like fixed monthly income, line of credit, lump sum or any combination between these options.
2. Stay living in your home permanently.
3. You never owe more than the worth/value of your home.
4. The income acquired from the loan is tax free.
5. Most reverse mortgages do not require credit scores and income to qualify.
6. No impact on the Social Security and Medicare
   

1. Expensive fees and high interest. The interest will increase the total loan amount every month. The high origination fees and closing fees tend to vary between different lenders, so it is wisely to get more than one quote.
2. Medicaid eligibility can be affected when you withdraw to much funds which you don't spent in that month.
3. To qualify for a reverse mortgage the borrower has to be of at least 62 years old.
4. Borrowers remain responsible for the expenses that come with maintaining the property, including taxes, insurance and all related costs and expenses.
5. The interest that comes with the reverse mortgage isn't tax deductible. However this is possible when the loan is paid off.
   

You will be able to stay in your home with a reverse mortgage. I am sure you are used to that environment and would not want to be uprooted by moving somewhere else. The hardship of packing your goods is avoided. A positive aspect of having an entity pay you, instead of you always making out the mortgage check.

On the other hand, if you have the income to maintain your home it would be unwise to start turning over the equity of your home to others. After all you put in much sweat, blood and tears to obtain and keep this home. It has become a part of you. You should not let it slip away, if you at all love this property. It would certainly not be right for seniors with an adequate pension and social security. Unfortunately, in some metropolitan areas the taxes and cost of living is astronomical. This causes many to have to, in essence, become wards of the  banks once again. 

If at all possible those in precarious economic straits should first look to taking in a renter, to alleviate the costs and to avoid getting involved in a reverse mortgage. Be wary of some metropolitan areas where this idea is not legal due to zoning laws. One must make the decision whether to be the "king of the castle," or strictly adhere to punishing zoning laws.

Reverse mortgage fees can be as insidious as the fees you paid for the original mortgage.  There are origination fees, appraisal fees, and an insurance fee. Many other fees will also be added on. Just as in the purchase of the home, closing costs come into play. Legal fees have to be considered. Look at it this way! The bank made a great profit, perhaps two and a half times the purchase price of the home, was what you ultimately paid the bank. When they pay you this money back, again they are making a profit on fees and all manner of conditions which will be costly to you. 

The reverse mortgage is for individual or couple caught between "a rock and a hard place," with no alternative. It is not something to get involved in unless there are no other options. It is heartbreaking to see the bank again get possession of the home upon you vacating it by moving or upon your death.