Reverse mortgages are for homeowners aged 62 or older and may allow you to access a portion of your home equity as a lump sum, monthly funds, or a line of credit while continuing to live in the home. We explain costs, responsibilities, and family considerations so you can decide with clarity.
A reverse mortgage is a home loan for homeowners aged 62 or older that converts part of your home equity into cash. Repayment is typically due when the last borrower sells the home, moves out, or passes away, and the balance may grow over time as interest and fees accrue.
A reverse mortgage may help homeowners aged 62 or older who want to improve monthly cash flow, create a financial buffer for retirement, or pay off an existing mortgage to reduce monthly obligations, especially when the home is a long term primary residence.
Eligible homeowners aged 62 or older may receive funds from their equity without making monthly mortgage payments. You keep ownership of the home, but you must continue to live in it as your primary residence and stay current on property taxes, homeowners insurance, and basic upkeep.
Depending on the program, homeowners aged 62 or older may receive funds as a line of credit, monthly payments, a lump sum, or a combination. The best structure depends on your goals, such as steady income support, emergency reserves, or paying off debt.
Reverse mortgages may include upfront costs and ongoing charges, and total cost depends on how long you keep the loan. Homeowners aged 62 or older are typically responsible for property taxes, homeowners insurance, and maintaining the home, and missing these obligations can put the loan in default.
It depends on your age, equity, and long term plans for the home. If you are aged 62 or older, we can compare a reverse mortgage with alternatives like downsizing, a HELOC, or a cash out refinance when appropriate so you can choose the best fit.
For homeowners aged 62 or older, a reverse mortgage may provide flexibility in retirement by turning home equity into usable funds while reducing or eliminating monthly mortgage payments. It can support cash flow planning and help you stay in the home longer when the long term impact is understood upfront.
A reverse mortgage can help eligible homeowners access part of their home equity without making monthly mortgage payments, while still living in the home. It can also be complex. This page explains how reverse mortgages work, who qualifies, what the real costs and responsibilities are, and how to protect your long term plan and your family.
A reverse mortgage is a loan for older homeowners that lets you convert part of your home equity into cash, and repayment is typically due when you sell, move out, or pass away. Instead of you paying the lender each month, the loan balance generally increases over time as interest and fees accrue. You still keep ownership, but you must meet the ongoing requirements to stay in good standing.
A HECM is the most common reverse mortgage and is insured by the FHA, with specific rules including required counseling. There are also proprietary reverse mortgages offered by private lenders, which can have different guidelines, especially for higher value homes.
For a HECM reverse mortgage, the minimum age is typically 62. Some proprietary reverse mortgage programs may allow a lower minimum age depending on the lender, so the best move is to match the program to your exact scenario.
Yes, you keep ownership, but you must keep the home as your primary residence and stay current on property taxes, homeowners insurance, and basic upkeep. A reverse mortgage is not a free house. It is a financial tool that works best when the responsibilities are clearly understood from day one.
Depending on the program, you may be able to receive funds as a line of credit, monthly payments, a lump sum, or a combination. The best option depends on what you are trying to solve, steady monthly support, a reserve line for emergencies, or a one time payoff of an existing mortgage.
A reverse mortgage generally becomes due when the last borrower sells the home, moves out, or is out of the home for an extended period such as long term medical care. This is one of the most important planning points, especially for families. We talk through realistic future scenarios before recommending a structure.
After the last borrower dies, the loan becomes due and heirs typically can repay the balance and keep the home or sell the home to repay the loan. If there is a spouse living in the home who is not a borrower, protections may apply in certain cases, but it depends on how the loan was set up and whether eligibility criteria are met.
In some cases a non borrowing spouse may be able to remain in the home after the borrower dies if specific requirements are met, so it is critical to structure the loan correctly upfront. This is a common place where good guidance matters. We review title, occupancy plans, and household details early so the loan matches the family plan, not just today’s need.
Reverse mortgages can include upfront costs and ongoing costs, and the loan balance can grow over time as interest and fees accrue, so total cost depends on how long you keep the loan. The right way to evaluate a reverse mortgage is not just “how much can I get,” but also “what does this do to my long term equity and monthly budget.”
HECM borrowers must complete counseling with a HUD approved counselor and receive a counseling certificate before moving forward. Counseling is there to make sure you understand alternatives, responsibilities, and how the loan works so you are choosing it for the right reasons.
