Many seniors have a lot of money tied up in their homes. A reverse mortgage can be one way to tap into that money if you need income after you retire. Still, there are some drawbacks you should consider carefully and discuss with a professional adviser.

Four reasons NOT to get a reverse mortgage

1.  Lost growth potential: If you spend the cash you get, you can’t invest it and try to increase its value. This means you’ll have less to leave your family or your estate.

2. Increasing debt: As the interest on your loan builds up over the years, you could use up most or all of the equity in your home. It depends on things like interest rates, how much you borrow, and for how long.

3. Taxes on investments: If you do invest some of the money you borrow, you will pay tax on unsheltered interest, capital gains, and dividends. To offset that cost, you may be able to deduct any interest you pay back on your loan. Talk to a financial adviser or tax expert to learn more.

4. Ongoing housing costs: You will continue to have the same costs for your home, including property taxes and maintenance. If you need to reduce those costs, a reverse mortgage may not be right for you. You may be better off to think about other options, such as selling your home, renting a new one, or buying something smaller and less expensive.

Remember: Reverse mortgages have some drawbacks.

Consider carefully the cost of borrowing against the equity in your home. If a reverse mortgage is not right for you, there are other options.