There’s a reverse mortgage now that senior’s can use to buy a home and owe NO mortgage. Seniors pay a large initial down payment but no future mortgage payment. What’s the catch? See the article in the link above for a great discussion and the downside.
With reverse mortgages, the payments accrue against the value of the house. Thus, the longer you live in the home, the more likely it is that the amount “owed” on the reverse mortgage exceeds the purchase price (or possibly even the current price) eliminating equity the owners established when they bought it.
As with anything, purchasing an asset is only 1/2 of the transaction. People forget to consider how does the asset’s sale come into the play later? People tend to think of rosy scenarios when they think of selling many years later. How about the not-so-rosy possibilities?