Reverse Mortgages

A reverse mortgage lets a homeowner aged 62 or older convert part of their home equity into funds, whether as a lump sum, a line of credit, monthly payments, or a combination, without a required monthly mortgage payment. The name describes the direction of the money: instead of paying down a balance over time, the balance grows as funds are drawn and interest and fees accrue on top of them. The homeowner keeps title to the property throughout.

What a reverse mortgage does not do is remove the ongoing costs of owning a home. The homeowner remains responsible for property taxes, homeowners insurance, any HOA dues, and keeping the home in reasonable repair. Falling behind on those obligations can put the loan in default, which is the single most important thing to understand before considering one. The loan becomes due when the home is sold, when the last borrower permanently moves out or passes away, or if those obligations go unmet.

Because the stakes are real, HUD requires independent counseling from an approved agency before an application can move forward. That session is genuinely useful. It covers alternatives, costs, and consequences for heirs, with someone who is not selling anything. A reverse mortgage is right for some homeowners and clearly wrong for others, and the honest answer depends on how long you intend to stay in the home, what other resources you have, and what you want to leave behind. We are glad to walk through it plainly, including the reasons it might not be the right move for you.