Answers
Reverse Mortgages: A Senior’s Questions
The questions older homeowners and their families ask most — answered plainly.
Reverse mortgages raise more questions than almost any product, and most of them have calm, simple answers. Here are the ones families ask us most.
Common questions
Will I lose ownership of my home?
No. You keep the title and you live in the home as you always have. The lender holds a lien, just like a traditional mortgage, and you can sell at any time. The idea that the bank takes your home is the most common myth, and it is false.
What happens to my home when I pass away?
Your heirs inherit it and choose: keep it by repaying the balance, often through a refinance, or sell it and keep any remaining equity. Because a HECM is non-recourse, they never owe more than the home is worth.
Can I be forced to leave my home?
Not as long as you meet the basic terms — keep paying property taxes and insurance, maintain the home, and live in it as your primary residence. Meet those and the home is yours to stay in for life.
How much money can I get?
It depends mainly on the age of the youngest borrower, your home’s value, and current rates. Older borrowers can access more. A jumbo reverse can reach higher-value homes beyond the government limit. We can give you a real estimate for your situation.
Will it affect my Social Security or Medicare?
Generally no, because the proceeds are loan advances rather than income. Need-based programs like Medicaid can be affected by how you hold the funds, which is worth planning around with the right guidance.
Do I have to make any payments?
There is no required monthly mortgage payment. You remain responsible for property taxes, homeowners insurance and upkeep, and for living in the home as your primary residence.
Is the money taxable?
Reverse mortgage proceeds are generally not taxable income, because they are loan advances. As always with taxes, confirm the specifics for your circumstances.
What if I change my mind after closing?
Reverse mortgages come with a right to cancel within a short window after closing. And the required HUD counseling beforehand exists precisely to make sure you are confident in the decision before you sign.