With a reverse mortgage, lenders face the risks that borrowers will live for many years, during which home prices will fall. To compensate, they charge hefty fees for reverse mortgages. Not only are interest rates usually a point or so higher than conventional mortgage rates, there are hefty origination fees, insurance fees, and so on.

Therefore, you should realize that reverse mortgage can be excruciatingly expensive in the short-term. People who plan to live in a house two years or less may want to avoid reverse mortgages because you