Reverse Mortgage FAQs: Clear, Simple Answers for Homeowners

If you're researching reverse mortgages, you're not alone. Many homeowners want straightforward answers before deciding what steps to take next.

This page was created to answer the most common reverse mortgage questions clearly and without pressure. The information below is designed to help you understand how reverse mortgages work, what to expect, and whether this type of loan may fit your long-term plans.

Take your time reading through the questions below, there's no rush.

What is a Reverse Mortgage?

A reverse mortgage is a home loan designed for homeowners age 62 and older that allows you to convert a portion of your home's equity into funds. Unlike a traditional mortgage, you are not required to make monthly mortgage payments as long as you live in the home, maintain it, and keep property taxes and homeowners insurance current.

The loan is repaid when the home is sold, the homeowner moves out permanently, or the last borrower passes away.

Do I still own my home with a reverse mortgage?

Yes.
You remain the owner of your home, and the title stays in your name, just like with a traditional mortgage. You can live in your home for as long as it remains your primary residence and you meet the basic loan requirements.

Do I have to make monthly payments?

No monthly mortgage payments are required.
However, you are still responsible for:

• Property taxes

• Homeowners insurance

• HOA dues (if applicable)

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• Basic home maintenance

These responsibilities are important to keeping the loan in good standing.

What can reverse mortgage funds be used for?

There are no restrictions on how funds must be used. Many homeowners choose to use reverse mortgage proceeds to:

• Eliminate an existing mortgage payment

• Supplement retirement income

• Cover medical or healthcare expenses

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• Pay off debt

• Fund home improvements

• Create a financial safety net

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The flexibility is one of the reasons reverse mortgages are often part of a broader retirement strategy.

Will my heirs lose the home?

No, your heirs have options.

When the loan becomes due, your heirs can:

• Sell the home and keep any remaining equity after the loan is repaid

• Refinance the home and keep it

• Pay off the loan balance with other funds

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A reverse mortgage is a non-recourse loan, meaning the loan balance can never exceed the value of the home.

What happens if the loan balance grows over time?

Because interest accrues on the loan balance, the amount owed increases over time. This is expected and built into how reverse mortgages work. Importantly, you or your heirs will never owe more than the home's value, even if the balance grows beyond it.

Is a reverse mortgage the same as a HECM loan?

A HECM (Home Equity Conversion Mortgage) is the most common type of reverse mortgage and is insured by the Federal Housing Administration (FHA). While there are other types of reverse mortgages available, many homeowners choose HECMs due to their consumer protections and flexibility.

Can I get a reverse mortgage if my home is already paid off?

Yes, and this is very common.

If your home is paid off, a reverse mortgage allows you to access your equity without taking on monthly mortgage payments. If you still have a small mortgage balance, a reverse mortgage can often be used to pay it off first.

Can I sell my home later if I have a reverse mortgage?

Absolutely.
A reverse mortgage does not lock you into your home. You can sell at any time, repay the loan from the sale proceeds, and keep any remaining equity.

Does a reverse mortgage affect Social Security or Medicare?

No.
Reverse mortgage funds are loan proceeds, not income. This means they do not affect Social Security or Medicare benefits.

(Some needs-based programs may be affected, so it's always wise to speak with a professional if this applies to you.)

Is counseling required?

Yes.
Before moving forward, borrowers must complete a brief counseling session with an independent HUD-approved counselor. This ensures you understand how the loan works and feel confident about your decision.

Is a reverse mortgage right for everyone?

A reverse mortgage can be a powerful financial tool, but it isn't the right solution for every situation. It works best for homeowners who:

• Plan to stay in their home long-term

• Want flexibility in retirement

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• Prefer access to equity without monthly mortgage payments

A personalized review of your goals is the best way to determine fit.

Reverse mortgages are designed to give homeowners more choice, flexibility, and control in retirement. Understanding how they work puts you in a stronger position to decide what's best for your future.

If you're curious about your options or want to explore whether a reverse mortgage makes sense for you, reviewing the numbers and asking questions is always a smart next step.