Core Insights - Reverse mortgages can provide financial support for older adults with home equity but limited savings, allowing them to remain in their homes [1][4] - The potential risks include depleting home equity, which may limit future housing options such as downsizing or moving to assisted living [5] - The Federal Trade Commission (FTC) highlights that reverse mortgages increase debt due to fees and accruing interest, contrasting with traditional mortgages that build equity [6] Financial Considerations - Veronica's mother has a home valued at $1.5 million and a reverse mortgage of $500,000, which has now been exhausted [2] - Veronica plans to withdraw $250,000 from her $800,000 401(k) to pay off the reverse mortgage, alongside using cash savings [3] - There are uncertainties regarding the tax implications of 401(k) withdrawals and the possibility of obtaining a new mortgage on her mother's house [3][4]