Do I still own my home with a reverse mortgage?

Yes. You keep the title as long as you meet the loan's requirements, which include paying property taxes and homeowners insurance and keeping the home in good repair.

Do I have to make monthly payments?

You aren't required to make monthly mortgage payments, but interest is added to the balance over time, so the amount you owe grows.

What happens to the loan when I move or pass away?

The loan generally becomes due. It's usually repaid by selling the home, and your heirs can typically keep the home by repaying the balance. Ask each lender how this works for the product you're considering.

Can my heirs owe more than the home is worth?

With a federally insured HECM, the loan is non-recourse, which means you and your heirs don't owe more than the home is worth. If the balance is higher than the home's value, heirs can generally settle by paying 95% of the appraised value, or sell for at least that amount. Other types of reverse mortgages may work differently, so ask.

What if my spouse isn't on the loan?

Federally insured HECMs have rules meant to protect an eligible spouse who isn't a borrower, but the conditions are specific. Ask lenders and your HUD-approved counselor how it would apply to you, and think carefully about who is on the loan before you apply.

Reverse Mortgage: How It Works

For homeowners 62 and older: turn equity into cash with no required monthly mortgage payment.

By the Money Fox editorial team · Updated November 10, 2026 · Last reviewed November 10, 2026

A reverse mortgage lets homeowners who are 62 or older borrow against their home’s equity without making required monthly mortgage payments. Instead of you paying the lender each month, the loan balance grows over time and is repaid later, typically when you sell the home or no longer live in it.

How it works

The amount you can access depends on your age, your home’s value, current interest rates and how much you still owe on any existing mortgage. Many reverse mortgages must pay off an existing mortgage first. You can usually receive the money as a lump sum, regular payments, a line of credit, or a combination, depending on the product.

The most common type is the Home Equity Conversion Mortgage, or HECM, which is insured by the FHA. For a HECM, the home must be your primary residence, you meet with a HUD-approved counselor before you apply, and the lender checks that you can keep up with property costs. HECMs carry FHA mortgage insurance premiums, including an upfront premium and an ongoing annual one. Privately offered reverse mortgages have their own rules.

You still own your home, and you’re still responsible for property taxes, homeowners insurance and maintenance. Failing to keep up with those can put the loan in default.

A worked example

This uses a made-up rate, not a current offer. Say you borrow $100,000 and don’t make payments. Suppose interest and ongoing insurance costs add up to an example 7% a year, added to the balance each month.

After 5 years, the balance is about $142,000.
After 10 years, it’s about $201,000.
After 15 years, it’s about $285,000.

The balance roughly doubles in 10 years at that example rate, and what’s left for you or your heirs is the home’s value minus that balance. That’s why the amount you borrow, the rate and how long you stay in the home matter so much.

Who it tends to suit

Homeowners 62 or older with substantial equity.
People who plan to stay in their home and want to free up cash without a new monthly payment.
Borrowers who understand that the balance grows over time.

Things to weigh

The balance grows, because interest and fees are added to what you owe, which reduces your remaining equity.
You must keep paying taxes, insurance and upkeep.
It affects what’s left for heirs. Talk it through with family.
Fees can be significant. Compare costs between lenders.
Counseling is required for a federally insured HECM. It’s worth using even where it’s optional.

Compare before you choose

Lenders differ on eligibility and fees. Take the quiz to see options that fit your situation, or browse the comparison directory. You may also want to compare a home equity loan, a HELOC or a home equity investment, which don’t have an age requirement.

This article is for general information and isn’t financial, tax or legal advice. Example rates and balances are illustrations, not offers.

Published November 9, 2026. This article is for general information and isn't financial, legal or tax advice. Terms vary by lender and state. We may be compensated by companies featured on this site. See our advertiser disclosure.