Understand the structure
A HECM is generally for eligible homeowners age 62 or older. Interest and fees are added to the balance, which can grow over time and reduce remaining equity.
Reverse mortgages
A thoughtful conversation about your next chapter.
Using home equity later in life is a decision that deserves time and a clear explanation. A reverse mortgage is one option to discuss alongside your housing plans, ongoing expenses, and goals for the future.
When to consider reverse mortgages
You want to learn how a Home Equity Conversion Mortgage (HECM) works and compare it with other ways to manage housing and cash flow.
Keep ongoing responsibilities in view
Borrowers must meet occupancy requirements, maintain the property, and pay property taxes and homeowners insurance. There are still costs and obligations.
Plan for repayment
The loan generally becomes due when the borrower no longer lives in the home. Discuss the effect on your household and heirs, and review required counseling before proceeding.
Keep the ongoing obligations in view
Who owns the home with a reverse mortgage?
With a HECM, the title remains in the homeowner’s name. Borrowers must still meet occupancy and property obligations, including taxes, insurance, and maintenance.
What happens to the loan balance?
Interest and fees are added over time, so the balance can grow and remaining equity can fall. Discuss repayment events, household needs, and the effect on heirs before deciding.
Learn more: CFPB: How reverse mortgages work. Program and lender requirements vary.
Your next step
Bring your household’s long-term questions.
Discuss how long you plan to stay, ongoing housing expenses, and what a move could mean. Ask about required counseling and compare alternatives before making a commitment.