What are the downsides of a reverse mortgage?

There are real trade-offs and a good broker will walk you through them honestly. First, closing costs are higher than a traditional mortgage — origination fees, FHA mortgage insurance premiums, and counseling fees typically add up to $8,000-$15,000 (most of which can be financed into the loan). Second, your equity decreases over time as interest accrues on the loan balance — this is the fundamental trade-off, and it means there will be less left for your heirs. Third, you must keep up with property taxes, homeowners insurance, HOA dues, and required maintenance — failing to do so is the only way you can lose the home. Fourth, the loan becomes due if you permanently leave the home (typically defined as 12 consecutive months out for medical reasons), so a reverse mortgage isn't ideal if you're likely to move into assisted living within a few years. A reverse mortgage isn't right for everyone — sometimes a HELOC, a traditional refinance, or just downsizing makes more sense. I'll compare all four options for your specific situation before recommending anything.