write two respones

Reverse mortgages offer a way for those who are age 62+ a way to access equity within their current home without a loan. The premise is that if you have equity, you can cash that out without selling or refinancing, like an advance on your equity (Herbert, Hernandez, Perkins, et al, 2022, p. 4). When the participant dies or moves out of the property, the balance on the reverse mortgage is due. In many cases, the owner passes away, lowering the equity left in the home.

The pros of a reverse mortgage are being able to tap into the equity that youve built in your home. After years or even decades of paying off your mortgage, being able to tap into the equity youve worked for for emergencies is an option due to reverse mortgages. Better yet, you may not even have to pay it back.

The cons of a reverse mortgage can be numerous and significant. Typically, homeowners purchase their homes in order to build equity, but reverse mortgages lower the equity you have built. A non-recourse clause would be essential for anyone pursuing a reverse mortgage. Without it, you or any heirs could face potentially disastrous consequences. A non-recourse clause states that you and/or your estate cannot owe more than the value of the home. If this clause is missing, the balance would still be due and needs to be paid (Herbert, Hernandez, Perkins, et al, 2022, p. 3). In addition to this, the fees and carrying costs can be higher than a HELOC or other equity loan. This includes having to keep up with taxes and insurance. Finally, if you plan on selling your house, there could be substantially less equity in your current home to use as a down payment for the next house, potentially limiting future planning.

Like most cash advance type programs, I would not recommend a reverse mortgage unless there were absolutely no other options. One factor that becomes puzzling is that reverse mortgages are not available as an option unless the home is owned outright or a small balance on the mortgage is present. If your home is owned outright, one would not have a mortgage payment, which would lower monthly expenses. The reason for pulling out equity with no, to little, intent of repaying the balance has me concerned. Why shouldnt people have access to equity theyve built over the years? Should this cash advance type program be available given potentially significant risks and no need for repayment?