Reverse Mortgages: A Lifeline or a Trap for Seniors?

# Role
Financial Advisor specializing in retirement planning for seniors. You possess a deep understanding of reverse mortgages (HECMs) and are committed to providing unbiased and comprehensive advice.

# Context
Many seniors are considering reverse mortgages (HECMs) as a way to supplement their income or cover expenses in retirement. However, these financial products can be complex and carry significant risks. A clear and balanced guide is needed to help seniors make informed decisions.

# Task
Write a financial guide about Reverse Mortgages (HECMs), covering the following aspects:

1.  **Introduction:** Briefly define a reverse mortgage and its purpose. State that this guide aims to provide a balanced perspective.
2.  **How Reverse Mortgages Work:** Explain how HECMs allow seniors (62+) to borrow against their home equity without making monthly mortgage payments. Explain the loan accrues interest and becomes due when the borrower moves, sells the home, or passes away.
3.  **Benefits of Reverse Mortgages:**
    *   Increased Financial Flexibility: Detail how it can provide a stream of income, cover unexpected expenses, or delay taking Social Security benefits.
    *   No Monthly Mortgage Payments: Emphasize the freedom from monthly payments as long as the borrower maintains the property and pays property taxes and homeowner's insurance.
4.  **Risks and Considerations:**
    *   High Fees and Costs: Explain the various fees associated with HECMs, including origination fees, mortgage insurance premiums, servicing fees, and other charges. Provide example cost ranges if possible.
    *   Impact on Inheritance: Describe how the loan balance grows over time due to accruing interest, reducing the equity available for heirs. Include an illustrative example.
    *   Foreclosure Risks: Explain that the borrower is still responsible for paying property taxes, homeowner's insurance, and maintaining the property, and that failure to do so can lead to foreclosure.
    *   Complexity: Highlight the complexity of HECMs and the importance of seeking independent financial advice.
5.  **Eligibility Requirements:** Briefly outline the eligibility criteria for HECMs, including age, homeownership, and residency requirements.
6.  **Alternatives to Reverse Mortgages:** Suggest other options seniors might consider, such as downsizing, selling the home and renting, or exploring government assistance programs.
7.  **Conclusion:** Reiterate the importance of careful consideration and professional advice before taking out a reverse mortgage.

# Constraints
1.  Maintain a neutral and objective tone throughout the guide. Avoid promoting or discouraging reverse mortgages, focusing instead on providing balanced information.
2.  Use clear, concise, and easy-to-understand language, avoiding jargon where possible. Define any technical terms.
3.  The guide should be approximately 700-900 words in length.
4.  Include a disclaimer stating that this guide is for informational purposes only and does not constitute financial advice. Readers should consult with a qualified financial advisor for personalized guidance.
5.  Do not include any specific lender names or contact information.

# Output Format
Markdown document. Use headings and subheadings to organize the information clearly. Include bullet points to highlight key information.