Hi @playmnrd! There are disadvantage and advantages of reverse mortgage. In most cases it is not a bad idea but it would be best for your mother-in-law to be properly guide and given the right information before she applies for this.
She can ask the help of a mortgage counselor or an expert perhaps on reverse mortgage. If she has a financial advisor who she have worked with in the past, his guidance could be very helpful. This is a major financial decision that she has to make and professional guidance can be help her decide..

These are the advantages of reverse mortgage:
* she won't have to be concerned about credit history or even her salary for they no longer matter. She only has to meet these basic requirements which are: she has o be the owner of the house, it is her primary residence, and she has to be 62 years old and above.
*she will have more freedom on what to do with the money
*the money she get from reverse mortgage can be utilized for whatever it is she fancies like traveling, buying another house, send someone to school, finding a good retirement home.
*no need to pay for interest payments for several years
*no need to pay government taxes since the money she will receive is not considered her regular income.

Disadvantages are:
*the loan does not include owners of trailers, second homes and resorts
*if she has taken an early retirement package at age 50, she will have to wait for 12 years before she is eligible to apply
*she will have to pay closing costs that often exceed traditional mortgage loans
* she has to consider giving the property to her heirs or children or else when she die the property will go to her estate and if it is not refinanced it will go directly to the lender who will be in charge of disposing it.

If a reverse mortgage needs to be taken, then I suppose one can still work in today's economy. However, the appraisal on the home isn't going to come in as high right now as it would have a few years ago. It would be interesting to see what happens to house prices in the next five or six years, though I also understand if your mother-in-law can't wait that long.

While these financial products definitely have a purpose, reverse mortgages are also very expensive overall. They also eat away at the amount of money that will be left for descendants. Other options, including cashing out stock positions, may prove to be less expensive alternatives.

Seniors over the age of 62 who own a home can qualify for a reverse mortgage, if there is adequate equity in the home. The senior will pay a fee to get the money. Since there are no standard charges, the fees do depend on the lender, third party vendor and the type of loan selected. Senior borrowers can expect to pay for: Mortgage insurance premiums, monthly lender fees and loan points or the application fee.
A Reverse Mortgage can help seniors retire better and the equity in your home can help to make the most of your retirement. Using the equity in your home can lead to questions about
other products include government insured Home Equity Conversion Mortgages (HECMs), Fixed-Rate HECM reverse mortgages and HECM for Purchase.