I hate it when simple tools get made too complicated.I agree with you, Rayvt, that one time a reverse mortgage makes sense is when you really don't need it. The other reverse mortgage that makes sense to me is one that is not a lump sum, but monthly payments. For those that enter retirement with a paid-for home plus a smaller investment portfolio or a pension that's not increased for inflation, there will likely come a time when they need additional money each month.That's when I'd recommend a reverse mortgage. But I'd recommend a small or no initial lump withdrawal. Just get some monthly payments that will continue to well past their life expectancy. I'd hazard a guess that the monthly payments could go on for 20 years or more without exhausting the equity in the house.That effectively lets the house-poor retiree tap into their home equity to fund the later part of their retirement without having to sell their house and move. It's not for everyone, but for those who can continue living on their own and would do better in their own home than they would in some other setting, I think it can be a good choice.--Peter
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