The risks of a reverse mortgage include:
High upfront fees and interest rates: Reverse mortgages often have high upfront fees and interest rates, making them expensive to obtain.
Limited use for cash flow: Because a reverse mortgage is a loan against the value of your home, it does not provide you with cash flow like other types of loans would. Instead, it uses the equity in your home as collateral for repayment.
Lack of control over funds: Once you receive a reverse mortgage loan, you lose control over how much money you can access from it each month as there are restrictions on how much can be withdrawn at once or over time.
Additionally, any unused funds at the end of each month will be returned to the lender rather than remaining in your account for future use.