I totally get what you mean about the paperwork feeling like a maze. When we refinanced last year, I thought I had a handle on it, but the way interest and fees stack up over time was a wake-up call. My folks did a reverse mortgage a while back thinking it’d be a cushion, but now they’re stressing about how much equity is left for us kids. It’s not always a disaster, but yeah, it’s never as simple as “free money.” Sometimes tapping into equity helps with cash flow, but you’re definitely giving up something down the line.
Title: Tapping home equity vs. traditional estate planning—what makes more sense?
I hear you on the reverse mortgage thing. My aunt went that route thinking it’d solve her cash crunch, but the paperwork was a beast and the fees ate up more than she expected. She was shocked at how fast the balance grew, especially with compounding interest. It did help her stay in her house, but now there’s barely anything left for her kids to inherit. I guess it really comes down to priorities—immediate needs vs. long-term plans. There’s no one-size-fits-all answer, but I always tell folks to run the numbers and look at the fine print before making any moves.
