Answers
Steve
NewRetirement
San Francisco, CA
Good question.
You can model the potential impact of re-financing vs. using a reverse mortgage using this retirement calculator.
https://www.newretirement.com/retirement-calculator/
One thing to note about a reverse mortgage is that you can make payments on it just like a forward mortgage, so that you pay down your principal. One unique thing about a reverse mortgage is that they can come with a line of credit that
1) Can't be taken away
2) Grows with time - even if your house value drops (this is a pretty unique way to hedge your home equity)
http://www.newretirement.com/blog/2016/01/28/become-as-savvy-about-reverse-mortgages-as-a-financial-expert/
http://www.newretirement.com/reverse-mortgage/reverse-mortgage-loan.aspx
Please note - this is not a recommendation or advice - you should talk to a fee only financial advisor who has a fiduciary relationship with you about your situation.
**All above answers are provided as general information only. No warranty is made regarding the fitness or accuracy of the information provided in this answer. You should seek advice from a licensed CPA, attorney or CERTIFIED FINANCIAL PLANNER™ as to your unique financial situation.