Frequently Asked Questions (FAQs) About Reverse Mortgages

It's natural that questions come up when you learn about reverse mortgages - after all, there are a lot of options which may be available to you. You are ALWAYS welcome to call me, but here are some of the questions that I get asked the most.

Q: Will I still own my home with a reverse mortgage?

A: Yes! You remain the owner of your home, just like with a traditional mortgage. As long as you continue paying property taxes, homeowners insurance, and keeping up with maintenance, you can live in your home for as long as you like.

Q: How do I receive the money from a reverse mortgage?

A: You have several options: a lump sum, monthly payments, a line of credit (which grows over time), or a combination of these. You can choose the option that best fits your needs.

Q: What happens if I decide to move or sell my home?

A: A reverse mortgage becomes due when you sell your home, move out permanently, or pass away. If you move, you (or your heirs) simply sell the home to repay the loan, and any remaining equity belongs to you or your estate.

Q: Will my children or heirs be responsible for the loan?

A: No. Reverse mortgages are non-recourse loans, meaning neither you nor your heirs will ever owe more than the home’s value. If your heirs want to keep the home, they can pay off the loan at 95% of the home’s appraised value or refinance it.

Q: Can I get a reverse mortgage if I still have a traditional mortgage?

A: Yes! Many seniors use a reverse mortgage to pay off their existing mortgage and eliminate monthly mortgage payments, freeing up more cash for retirement.

Q: What if my home value goes down?

A: If your home value decreases, you or your heirs will never be required to pay more than what the home is worth at the time of sale. HECMs are FHA-insured, so the government covers any shortfall.

Q: Can I use the loan for anything I want?

A: Absolutely! You can use your funds for anything—from covering daily expenses and medical bills to home improvements or even a dream vacation.

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Common Reverse Mortgage

Myths and Truths

💭 Myth: The bank will own my home if I take out a reverse mortgage.
✅ Truth: You remain the homeowner. The reverse mortgage simply allows you to access your home equity while still living in and owning your home.

💭 Myth: I could lose my home with a reverse mortgage.
✅ Truth: As long as you pay property taxes, homeowners insurance, and maintain the home, you can stay in your home for life—just like with any other mortgage.

💭 Myth: Reverse mortgages are only for people who are struggling financially.
✅ Truth: Many financially stable retirees use a reverse mortgage as a strategic tool to enhance their retirement, supplement income, or preserve other assets.

💭 Myth: My kids won’t inherit my home.
✅ Truth: Your heirs still inherit the home and can choose to sell it, refinance the loan, or pay off the balance to keep it. Any remaining equity belongs to them.

💭 Myth: Reverse mortgages are a last resort.
✅ Truth: A reverse mortgage is a smart financial tool used by seniors who want to improve their quality of life, manage retirement savings, and gain financial flexibility. Many savvy retirees use a reverse mortgage as part of a well-planned retirement strategy.

💭 Myth: If my spouse isn’t on the loan, they’ll have to move out if I pass away.
✅ Truth: If your spouse is an eligible non-borrowing spouse, they can remain in the home even after you pass away, as long as they continue to meet the loan requirements.

💭 Myth: Reverse mortgages are too expensive.
✅ Truth: Like any mortgage, there are fees involved, but because you aren’t making monthly payments, many borrowers find that the benefits far outweigh the costs. Plus, there are no out-of-pocket costs at closing—the fees are typically rolled into the loan.

💭 Myth: I won’t qualify because I don’t have a high income or credit score.
✅ Truth: Reverse mortgages don’t have credit score or income requirements like traditional loans. As long as you meet the basic qualifications and can cover property taxes, insurance, and home upkeep, you may qualify.

A reverse mortgage isn’t for everyone, but for many seniors, it’s a safe, flexible, and powerful way to make retirement more comfortable. Have more questions? I’d love to help!