A reverse mortgage is a different loan structure
Rather than a standard monthly principal-and-interest payment, repayment is generally deferred while the borrower meets the loan's requirements. Interest and fees can increase the balance over time.
That does not remove the obligation to pay property taxes, insurance and other required property charges or maintain the home. Failure to meet obligations can put the property at risk.
Review the available proceeds and payout choices
Age, property value, existing mortgage debt, rates and program limits affect available proceeds. Depending on the product, disbursement choices may include a lump sum, line of credit or periodic payments.
Existing mortgage debt normally has to be addressed at closing. Ask for an illustration that shows loan costs, the starting balance, available funds and how the balance may change over time.
Plan for future changes
Consider how a move, a prolonged absence, the death of a borrower or a change in household circumstances can affect the loan. Discuss any non-borrowing spouse and heir considerations with the qualified professionals involved.
HECM counseling is part of the process. Request a reverse-mortgage review from the team and compare alternatives before choosing how to use home equity.
Questions about this option
Does a reverse mortgage eliminate all housing expenses?
No. Borrowers must continue meeting tax, insurance, occupancy, maintenance and other loan obligations.
Is this the same as a standard cash-out refinance?
No. A reverse mortgage has a different repayment structure, eligibility process and set of borrower obligations.
Sources & program information
Content updated November 12, 2026. Program availability and underwriting requirements can change. Confirm your terms with a licensed loan originator.