The biggest downside to a reverse mortgage is that the balance increases over time as interest on the loan accumulates. This process can eat up your home’s equity, which leaves fewer assets for your heirs, especially if your wealth is primarily tied up in your home. Reverse mortgage residency requirements can also be challenging to uphold as you get older. For example, the loan is due if you unexpectedly have to move into a nursing home or assisted living facility. There’s also the chance you could outlive the payment terms on your reverse mortgage, which could lead to a significant financial struggle in your later years. Another downside is that the fees can get expensive — plus, you’re financially responsible for property taxes, insurance and maintenance charges. The extra income from disbursements can also affect your eligibility for needs-based government programs, including Medicare and Social Security income. A reverse mortgage usually isn’t a good idea if you don’t plan on spending the rest of your life in the home. Remember that the loan is due when you die or permanently move out of the property.