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.
Review borrower responsibilities, a growing loan balance and the arrangements for repayment.
Borrowers generally must be 62 or older, use the eligible home as a principal residence and have sufficient equity. The process includes HUD-approved counseling and a financial assessment. Age alone does not establish approval or determine how much money can be received.
Property taxes, required insurance and maintenance remain the homeowner's responsibility, along with occupancy and other loan conditions. Failure to comply can make the mortgage due. A reverse mortgage therefore does not eliminate the need for a sustainable household budget.
Existing mortgage debt generally needs to be cleared at closing, and costs and any required set-asides reduce available funds. If proceeds cannot cover the necessary payoff, acceptable additional funds may be needed. Compare the net amount available with the alternatives being considered.
The borrower generally remains the owner while the lender holds a mortgage lien. Interest, fees and insurance charges can increase the unpaid balance and reduce equity over time. Ownership comes with the continuing obligations specified in the loan documents.
Discuss plans to move, extended absences, possible long-term care and a spouse who will not be a borrower. Due-and-payable events and eligible non-borrowing-spouse protections have specific conditions. Counseling should address the actual household rather than a simplified example.
Contact the servicer promptly to establish applicable protections, repayment options and deadlines. Depending on circumstances, heirs may repay, arrange financing or sell. HECM non-recourse rules and eligible payoff provisions can limit liability, but the servicer's instructions and program conditions need to be reviewed for that case.
Information reviewed September 6, 2026. Sources: CFPB: Reverse mortgage responsibilities · CFPB: Reverse mortgage terms · CFPB: Reverse mortgage costs · CFPB: Heirs and surviving household members.
