Property-rich but cash-poor boomers and seniors may sleep better once they've investigated a Home Equity Conversion Mortgage (HECM), a federally insured reverse mortgage. With a HECM you can have a line of credit to draw on to pay your bills. And you won't have to sell your home or take out another type of loan because the lender pays you as long as you remain in your home.
The glitch: When you sell your home, move out permanently, or die, you or your children sell your property and repay the loan, both principal and interest.
Most people consider reverse mortgages for several reasons but paying for in-home care ranks first.
Some consider reverse mortgages as a last resort because they're expensive. So consider all private loans, a home equity loan, downsizing, or selling and moving.
Upfront costs are high so it doesn't make sense unless you plan to remain in your home for a long time.
Discuss your plans with your family so that they understand any impact on your estate.