In short
A reverse mortgage is a loan that lets eligible homeowners — typically age 62 and older — convert part of their home equity into funds, with no required monthly mortgage payment. The most common type is the FHA-insured HECM, and borrowers remain responsible for property taxes, insurance, upkeep, and keeping the home as their primary residence.
Reviewed by Toni Taylor Gozza, NMLS #274323 · Last updated July 12, 2026
What is a reverse mortgage and how does it work?
A reverse mortgage is a loan that lets eligible homeowners — typically age 62 and older — convert part of their home equity into funds, which can be taken as a lump sum, monthly payments, a line of credit, or a combination. The most common type is the Home Equity Conversion Mortgage (HECM), which is insured by the Federal Housing Administration. Unlike a traditional mortgage, there's no required monthly mortgage payment; instead, the loan balance grows over time and is generally repaid when the last borrower sells the home, moves out permanently, or passes away. Importantly, you remain responsible for property taxes, homeowners insurance, and maintaining the home, and it must stay your primary residence. HUD-approved counseling is required before you move forward, and our team supports you through every step with education, not pressure.
Key takeaways
A reverse mortgage is a significant financial decision, and it deserves careful, honest guidance — not a sales pitch. For homeowners typically age 62 and older, this type of loan can convert a portion of home equity into funds without a required monthly mortgage payment. That said, it isn't right for everyone, and there are important responsibilities that come with it. Our team's role is to explain how it works in plain English, walk through the requirements and trade-offs, and help you and your family understand whether it fits your goals. There's never any pressure here.
A Careful, Honest Look at Reverse Mortgages
A reverse mortgage is one of the more misunderstood tools in home financing, and it's a decision that deserves patience and clear information. For homeowners typically age 62 and older, it can be a way to access a portion of the equity built up over years of ownership. But it comes with real responsibilities, and it isn't the right fit for every situation. Our team approaches these conversations the way we approach everything: education first, plain English, and no pressure. This page is meant to help you understand the basics so you can decide whether it's worth exploring further.
How a Reverse Mortgage Works
With a traditional mortgage, you make payments to build equity. A reverse mortgage works differently. It lets eligible homeowners convert part of their home equity into funds, and there is no required monthly mortgage payment. Instead of paying down a balance each month, the loan balance generally grows over time as interest and fees are added.
The loan typically becomes due and payable when the last borrower sells the home, permanently moves out, or passes away. At that point, the home is usually sold to repay the loan, and any remaining equity belongs to you or your heirs. The most common reverse mortgage is the Home Equity Conversion Mortgage (HECM), which is insured by the Federal Housing Administration.
Ways You Can Receive the Funds
One reason people consider a reverse mortgage is flexibility in how funds are received. Depending on the program, options can include:
- A lump sum at closing
- Monthly payments for a set period or as long as you live in the home
- A line of credit you can draw on as needed
- A combination of these
How the funds may be used is generally up to you — common reasons include supplementing retirement income, covering healthcare costs, or creating a financial cushion.
Your Responsibilities as a Borrower
This is the part we make sure every client understands clearly. A reverse mortgage does not eliminate your obligations as a homeowner. To keep the loan in good standing, you must:
- Pay your property taxes on time
- Keep homeowners insurance in force
- Maintain the home and keep it in good condition
- Live in the home as your primary residence
Falling behind on taxes, insurance, or upkeep, or no longer living in the home as your primary residence, can put the loan at risk of becoming due. These aren't fine-print surprises — they're central to how the program works, and we walk through them with you honestly before anything moves forward.
The Required Counseling Step
Before you can move forward with a HECM, you're required to complete a counseling session with an independent, HUD-approved counselor. This is a good thing. The counselor's job is to make sure you understand the loan, the costs, the alternatives, and the responsibilities — with no stake in whether you proceed. Our team encourages you to take full advantage of that session and to include family members you trust in the conversation.
Is a Reverse Mortgage Right for You?
A reverse mortgage can be a helpful tool for some homeowners and the wrong choice for others. It may be worth exploring if you:
- Are typically age 62 or older and have significant equity in your home
- Plan to stay in your home for the foreseeable future
- Want to supplement retirement income or keep a financial cushion available
- Understand and are comfortable with the ongoing tax, insurance, and maintenance responsibilities
It may not be the right fit if you plan to move soon, if maintaining the home long-term would be difficult, or if there may be simpler options that meet your needs. Because everyone's situation is different, we take the time to look at the full picture with you.
Talk It Through With Our Team
If you're curious whether a reverse mortgage makes sense for you or a loved one, we're glad to explain the details and answer your questions with zero pressure. Our goal is simply to help you understand your options so you can make the decision that's right for your family. Reach out whenever you're ready.
All information on this page is provided for general education only and is not financial, tax, or legal advice, nor an offer or commitment to lend. A reverse mortgage is a loan that must be repaid, and eligibility, costs, terms, and homeowner responsibilities apply and are subject to change. Borrowers remain responsible for property taxes, homeowners insurance, and property maintenance, and must maintain the home as their primary residence. HUD-approved counseling is required for a HECM. Contact our team for current details specific to your situation.
Quick facts
- Typical age requirement
- Generally 62 and older
- Common type
- Home Equity Conversion Mortgage (HECM), FHA-insured
- Monthly mortgage payment
- None required while you live in the home
- How you receive funds
- Lump sum, monthly payments, line of credit, or a combination
- Your ongoing obligations
- Property taxes, homeowners insurance, upkeep, primary residence
- Counseling
- Independent HUD-approved counseling required for a HECM
Is this loan right for you?
Who it's for
- Homeowners typically age 62 and older with significant equity in their home
- Those who plan to stay in their home for the foreseeable future
- Homeowners looking to supplement retirement income or keep a financial cushion available
- People comfortable with the ongoing tax, insurance, and maintenance responsibilities
Who it may not fit
- Homeowners who plan to move or sell in the near future
- Those for whom maintaining the home and paying taxes and insurance long-term would be difficult, or who may have simpler options
Pros and cons
Pros
- No required monthly mortgage payment while you live in the home
- Flexible ways to receive funds: lump sum, monthly, line of credit, or a combination
- You keep ownership and title as long as loan requirements are met
- The common HECM is FHA-insured and includes a required counseling safeguard
Trade-offs to weigh
- The loan balance grows over time and reduces the equity left to you or your heirs
- You must keep up with property taxes, insurance, maintenance, and primary-residence occupancy or the loan can become due
Frequently asked questions
Do I still own my home with a reverse mortgage?
Yes. You keep the title to your home and remain the owner. A reverse mortgage is a loan secured by the home, much like any mortgage. As long as you meet the loan requirements — paying property taxes and insurance, maintaining the home, and living there as your primary residence — you continue to own and live in it. Our team makes sure this is crystal clear before anything moves forward.
Will I have a monthly mortgage payment?
There is no required monthly mortgage payment on a reverse mortgage. Instead, the loan balance generally grows over time and is typically repaid when the last borrower sells, permanently moves out, or passes away. Keep in mind you're still responsible for property taxes, homeowners insurance, and maintaining the home. We walk through those ongoing responsibilities with you honestly.
What happens to my home and my heirs when the loan is due?
When the loan becomes due — usually when the last borrower sells, moves out permanently, or passes away — the home is generally sold to repay the balance. Any remaining equity belongs to you or your heirs. The HECM is insured by the FHA, which offers certain protections. We're glad to explain how this works so your family understands the picture.
Why is counseling required?
Before moving forward with a HECM, you must complete a session with an independent, HUD-approved counselor. It's a safeguard designed to make sure you fully understand the loan, its costs, the alternatives, and your responsibilities — from someone with no stake in your decision. We view it as a genuinely valuable step and encourage you to include trusted family members.
Is a reverse mortgage a good idea?
It depends entirely on your situation. A reverse mortgage can be a helpful tool for some homeowners and the wrong choice for others. It tends to fit best for those with significant equity who plan to stay in their home and are comfortable with the ongoing responsibilities. Our team's job is to lay out the facts and trade-offs with no pressure, so you can decide what's right for you.
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Last updated July 12, 2026 · Reviewed by Toni Taylor Gozza, NMLS #274323. This page is educational and not a commitment to lend; program details change — ask for current figures.