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Reverse mortgage education for homeowners 62+

Your home equity could help you in retirement

A reverse mortgage can turn part of your home equity into cash without selling your home. Learn how it works before you decide whether it makes sense for you.

Book a 30-minute meeting See how it works

General education. No loan application. No sales pitch.

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Start with the factsYou stay in control of the decision.
Plain EnglishBenefits and tradeoffsTime to decide

The short answer

What is a reverse mortgage?

The most common reverse mortgage is a Home Equity Conversion Mortgage, or HECM. It lets homeowners 62 and older borrow against part of their home equity without making a required monthly principal and interest payment.

01

You borrow against your equity

The amount available depends on factors such as age, home value, current rates, and the existing mortgage balance.

02

You choose how to receive it

Depending on the loan, funds may be available as a lump sum, monthly payments, a line of credit, or a combination.

03

The loan is repaid later

Repayment usually happens when the last borrower sells the home, moves out permanently, or dies.

A reverse mortgage is still a loan. The balance grows as interest and fees are added.

Read HUD's current HECM information Read the CFPB's plain-language guide
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One of the biggest questions

You still own your home

The lender does not take the title. You continue living in your home and remain responsible for it.

Pay property taxes

Keep homeowners insurance

Maintain the home

Use it as your primary residence

If these obligations are not met, the loan may become due and the home could face foreclosure.

Learn about the risks and responsibilities

Your priorities are personal

What can a reverse mortgage help pay for?

People use the money in different ways. What matters is whether the loan helps with a real need without creating a bigger problem later.

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Everyday cash flow

Make more room in the monthly budget

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Home and health

Cover repairs, improvements, or medical bills

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Keeping up the house

Take care of repairs before they become bigger problems

How you receive and use the money can affect taxes, benefits, and long-term plans. Talk with the right financial, tax, legal, and housing professionals for your situation.

Look at the whole loan

What does it cost?

A reverse mortgage can improve monthly cash flow, but it is not free money. The amount owed usually grows over time.

Money you receiveInterest and feesGrowing loan balance
  • Interest is added to the balance
  • Closing costs and mortgage insurance may apply
  • Less equity may be left when the loan is repaid
  • Your heirs need a plan if they want to keep the home
Read the costs and fees guide
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It helps to talk through the effect on the whole family.

Questions to help you decide

Is a reverse mortgage right for you?

A reverse mortgage may work well for some homeowners. For others, selling, downsizing, a HELOC, or another option may make more sense.

It may be worth a closer look if

  • You plan to stay in the home for several years
  • You can keep paying taxes, insurance, and upkeep
  • Improving cash flow matters more than preserving every dollar of equity
  • You have talked through the plan with the people it may affect

Another option may be better if

  • You expect to move soon
  • Ongoing home costs are already hard to manage
  • Leaving the home with as much equity as possible is the top priority
  • A lower-cost source of money would meet the same need

“Reverse mortgages are a useful tool for older adults to age in place, but they are not for everyone.”

National Council on Aging

Questions people ask first

These are short answers. Each one links to a fuller explanation elsewhere on the site.

Do I still own my home?

Yes. You stay on the title. You must keep the home as your primary residence, pay property taxes and homeowners insurance, and keep up with maintenance.

Do I make a mortgage payment every month?

A HECM does not require a monthly principal and interest payment. Interest and fees are added to the loan balance, and you still have to pay property charges and meet the loan terms.

What happens to the home later?

The loan is usually repaid when the last borrower sells the home, moves out permanently, or dies. Different rules may apply to a co-borrower or an eligible non-borrowing spouse. Heirs can usually sell the home or pay off the loan if they want to keep it.

Use the two-minute fit guide

A calm place to start

Have questions? Let's talk

Book a 30-minute Google Meet and bring your questions. We'll walk through the basics and help you make a list of things to ask a lender or HUD-approved counselor. This is general education, not a loan application or personal financial advice.

Choose a time Use the fit guide instead

ClarityKeep provides general educational information about reverse mortgages. It is not financial, legal, or tax advice. This site does not originate loans or accept applications. Consult a licensed mortgage professional, HUD-approved counselor, and your advisors before making decisions.

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