Your home equity is part of the plan. Let's understand the tradeoffs.

This is a loan, not free money. It can be useful in the right plan, and expensive or limiting in the wrong one.

What is a HECM reverse mortgage?

A Home Equity Conversion Mortgage, usually called a HECM, is the most common type of reverse mortgage. It is insured by the Federal Housing Administration and is designed for homeowners age 62 or older who meet the program requirements.

Instead of making a required monthly principal and interest payment, an eligible homeowner may receive loan proceeds in an available form such as a line of credit, monthly advances, a lump sum, or a combination. The available choices depend on the loan type and current program rules.

Interest, mortgage insurance premiums, and financed costs are added to the balance. That means the amount owed usually rises while the owner's remaining equity may fall.

See how a HECM works →

What can someone use it for?

People usually start with a housing or cash flow problem, not a mortgage product. The conversation may be about:

• Paying off an existing mortgage and removing its required monthly principal and interest payment
• Creating access to funds for planned or unexpected expenses
• Building another source of available liquidity
• Buying a home that better fits the next stage of life
• Giving a retirement plan more room to handle market, health, or family changes

Loan proceeds can affect taxes, public benefits, estate plans, and investment decisions. Bring the right professionals into the conversation when those issues matter.

What does the homeowner still have to pay?

A reverse mortgage does not remove the cost of owning a home. The homeowner must keep paying property taxes, homeowners insurance, and any other required property charges. The home must be maintained, and it must remain the principal residence under the loan terms.

If those obligations are not met, the loan can become due and payable and the home may be at risk.

Understand costs and homeowner responsibilities →

When is the loan repaid?

A HECM generally becomes due and payable after the last borrower dies, sells the home, or no longer occupies it as a principal residence. It may also become due sooner if loan obligations are not met.

The home can still pass to heirs. They decide how to handle the property and the loan, subject to the loan rules and required timelines. A HECM is non-recourse, which provides important limits on personal liability, but families should learn the details before they need them.

Read the family guide →

Is it right for everyone?

No.

A reverse mortgage may not fit if the homeowner expects to move soon, cannot reliably pay property charges, wants to preserve as much home equity as possible, or has a less expensive way to solve the problem.

I want to compare the real alternatives, including a traditional refinance, home equity loan or line of credit, downsizing, using other available assets, waiting, or doing nothing for now.

Is a reverse mortgage right for me? →

What happens before someone applies?

HECM borrowers must complete counseling with a HUD-approved housing counseling agency. The counselor is independent from the lender and explains the loan, costs, obligations, and alternatives.

I can help you prepare for that conversation. I do not choose the counselor for you, answer for you, or replace counseling.

Counseling and the loan process →

A note from Nick

If you call me, I am not going to start with a product. I am going to ask what you want the home to do for you, how long you expect to live there, what the monthly budget looks like, and who else should be at the table.

Then we put the options side by side. If a HECM makes sense, you will understand why. If it does not, I will tell you that too.

Common questions

Do I give the bank my house?

No. The homeowner keeps title to the home. The home secures the loan, just as it does with a traditional mortgage. The homeowner must follow the loan terms, including paying property charges, maintaining the home, and occupying it as a principal residence.

Are there really no monthly payments?

There is generally no required monthly principal and interest mortgage payment. The homeowner still pays property taxes, homeowners insurance, any applicable association dues, maintenance, and other required property charges. The balance usually grows as interest and financed costs are added.

Can I lose my home?

Yes, if the loan obligations are not met. Common risks include failing to pay property taxes or homeowners insurance, failing to maintain the home, or no longer occupying it as the principal residence under the loan terms.

Will my children inherit the debt?

A HECM is non-recourse. Heirs are not personally responsible for a deficiency beyond the protections provided by the program, but they must address the loan if they want to keep or sell the home. Families should contact the servicer promptly after the last borrower dies.

How much can I receive?

It depends on factors that include age, interest rates, home value, the FHA lending limit, existing liens, property eligibility, and the financial assessment. A specific amount requires a current, individual loan analysis.

Can I use a reverse mortgage to buy a home?

Yes. A HECM for Purchase may let an eligible buyer age 62 or older combine personal funds with HECM proceeds to buy a principal residence in one transaction.

Learn about HECM for Purchase →

I’d Love to Help

Start with the decision, not the loan

Tell me what you are trying to solve. Bring your spouse, children, Financial Planner, CPA, attorney, or anyone else who should understand the decision.