Fact and fiction

Reverse mortgage myths & FAQs

Reverse mortgages have been around for decades, yet they remain one of the most misunderstood financial products. The best way to evaluate one is to understand how today's programs actually work.

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Fig. 06 · Straight answers

Common myths

Separating fact from fiction

Myth: The bank takes ownership of my home

The reality: You remain the owner. Like a traditional mortgage, the lender places a lien against the property, but your name stays on the title and you keep making decisions about your home.

Myth: I will be forced out of my house

The reality: A reverse mortgage is designed to help eligible homeowners stay. You may continue living there as long as you meet the loan requirements, including keeping it your primary residence.

Myth: My children will be left with debt

The reality: Your heirs have options. Many sell the home, repay the loan from the proceeds, and keep any remaining equity. If they wish to keep the home, they may have options under program guidelines.

Myth: It is only for people who are broke

The reality: Homeowners consider these loans for many reasons, from improving cash flow to eliminating a mortgage payment to planning a broader retirement strategy. The reasons vary from person to person.

Good questions

Frequently asked questions

These are some of the questions we hear most often. If yours is not here, we are glad to answer it.

If the home is no longer your primary residence, the loan generally becomes due. Many homeowners sell at that time, though other options may be available depending on the circumstances.

Yes. Monthly payments are generally not required, but you may choose to make voluntary payments toward the balance. There is no requirement to do so, but some homeowners like the flexibility.

Every situation is unique. Depending on the program and how the mortgage is structured, additional planning may be needed. We review your household's circumstances and explain how age eligibility may affect your options.

Loan proceeds are generally not considered taxable income, but tax situations vary. We recommend discussing tax questions with a qualified tax professional who can advise on your specific circumstances.

In many cases, proceeds do not affect Social Security or Medicare because they are loan proceeds rather than income. Need based programs may be affected depending on how funds are received, so we encourage a conversation with the right professional.

Yes. A reverse mortgage does not prevent your heirs from inheriting your home. Like any property with a mortgage, the loan is addressed as part of settling the estate. Many families sell and keep the remaining equity, and others keep the home if they qualify to satisfy the loan.

Still have questions

No website can answer every one

If there is something you are unsure about, we are here to help. Whether you want a quick answer or a longer conversation about your goals, we are glad to talk.

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