We have begun to reconsider the use of reverse mortgages. This has been an "against the grain" exercise since we have always preferred to leave the home equity in our plans for clients so that even at an advanced age and out of money, the client would still have the equity in their home to fall back on as a last resort. The availability and continued evolution of reverse mortgages, or Home Equity Conversion Mortgages (HECM's), have prompted us to refine our thinking on this issue.
The conventional wisdom has been that reverse mortgages are for use as a last-resort. Last resort situations can still be a reason to take out a HECM, but other uses may make the HECM attractive as well.