Great question, hard to answer, here are my thoughts. IF it was my life... At 63 my wife and live debt free in a nice place. If we found a great buy it would not really matter what the up front costs were on the reverse. Thoses costs are higher then normal mortgage costs but if it gets us what we wanted we would do it.
If you keep your home with a reverse on it for a few years, I think it is a win win. Getting cash out now from your present home, and keeping both, for a few years is a great idea. Buying when the market is down seems right, i think it makes up fro the difference in costs up front.
I do not take great risks, at my age i do not want to gamble the future. A reverse is not a gamble, it is a bit costly. Call me if you need to talk about it. I have been a REALTOR since the 60's. 732-778-9933 Good luck and thanks. Marc williams