The bank does not own your home.
Reverse mortgages are the product people have the most questions about and the most wrong ideas about. Most of the pushback I hear does not come from the homeowner. It comes from their kids, and most of it is based on myths. Here is how a reverse mortgage actually works, who it is really for, and what to ask before you decide.
You keep the title to your home.
The home stays in your name or your trust. The lender holds a lien, the same as on any other mortgage. The bank does not own your home.
No required monthly mortgage payment.
Interest is added to the balance instead of being paid each month. Property taxes, insurance, HOA dues, and upkeep stay yours.
Your heirs never owe more than the home is worth.
A HECM is non-recourse. Your heirs can keep the home, sell it, or hand it back. The shortfall is never their debt.
You can sell whenever you want.
A reverse mortgage does not lock you into the house. The loan is paid from the sale and whatever equity is left is yours.
These are the facts I explain on my show. Loans are subject to credit approval; terms and conditions apply. Program guidelines, eligibility, and age requirements vary by product and by state. Guide by Debbie Marcoux, NMLS #237926, JMJ Financial Group, NMLS #167867. Last updated .
There is no form to fill out first. We go through your situation on the phone, and your kids are welcome on the call.
Equal Housing OpportunityWhat is a reverse mortgage?
A reverse mortgage is a home loan for older homeowners that pays you, or pays off your existing mortgage, instead of you paying the lender every month. The balance grows over time instead of shrinking. You keep the title to your home, and the loan is repaid when you sell, move out, or pass away.
How does a reverse mortgage work? A plain-English explanation.
A reverse mortgage lets you borrow against the equity you have already built in your home, with no required monthly mortgage payment. With a regular mortgage, you borrow a lump sum and pay it down every month until it is gone. A reverse mortgage flips that: interest is added to the balance instead of being paid each month, so a reverse mortgage balance goes up over time. The most common reverse mortgage is the federally insured HECM, a HUD program; proprietary reverse mortgages are private and not federally insured. You keep the title, you stay responsible for property taxes, insurance, HOA dues, and upkeep, and the loan is repaid when you sell, move out, or pass away. That is the whole trade: you give up some of the equity you would otherwise leave behind, in exchange for using it while you are alive and in the home.
Who is a reverse mortgage right for?
A reverse mortgage fits best when your home is your retirement and your income and savings do not cover what you need. It fits less well if you do not need it, and not at all if you plan to move soon. It carries a reputation earned before the financial crisis that no longer fits how the program is regulated today.
It fits best when the home is the retirement.
If your house is the asset that keeps your lifestyle the same, and pensions, Social Security, and savings do not cover what you need, a reverse mortgage can turn equity into monthly breathing room without a monthly payment attached.
It fits less well when you do not need it.
If you have retirement income, savings, and investments that cover your life comfortably, my advice is usually to keep your assets intact and leave the equity alone.
It is not a fit if you are leaving soon.
If you plan to move in the near future, or if the home will not be your primary residence, a reverse mortgage is the wrong shape for you.
The people who deserve a seat at the table are your adult children, because they are usually the ones with the objections. I am happy to walk through it with the whole family. I would rather answer their questions on the phone than have them talk you out of something that fits, or into something that does not.
Who qualifies for a reverse mortgage?
For the federally insured HECM, the youngest borrower or spouse must be at least 62, the home must be your primary residence, counseling comes first, and the lender reviews your credit and your ability to keep up with taxes and insurance. HECM stands for Home Equity Conversion Mortgage, a HUD program that lenders like me originate. Proprietary (private) reverse mortgages are not federally insured and have their own guidelines.
- The age rule.For the federally insured HECM, the youngest borrower or spouse must be at least 62. Proprietary products can go lower, in most states starting at 55, but not in every state, and the rules vary by state. If you are under 62, that is a conversation about your specific state, so contact me rather than assuming the answer either way.
- Age also shapes how much you can borrow.A younger borrower has a longer expected time in the loan, so the program lends a smaller share of the home’s value. The older you are, the larger the share. That is why a younger homeowner with a sizable existing mortgage sometimes does not qualify while an older homeowner with the same mortgage does.
- Credit and income are reviewed.Lenders look at your credit history and confirm you can keep up with property taxes, insurance, and your other obligations. This is not a pass-or-fail credit score test. A weaker history may mean part of your proceeds is set aside to cover future taxes and insurance rather than a decline.
- Counseling comes first.Independent reverse mortgage counseling is one of the first steps in the process, not something that happens later and not something you can skip. It has to be completed before your loan application can be completed, so you hear the rules explained by someone who is not selling you anything. I think that is a good thing.
I will not put rates, fees, or borrowing limits on this page, because they change and they depend on you. When we talk, I will give you real numbers for your age, your home, and your state.
What stays the same with a reverse mortgage?
You keep the title.
The home stays in your name, or in your trust, exactly as it would with any other mortgage. The lender holds a lien, the same as a bank does on a regular loan.
You are still the homeowner.
You remain responsible for property taxes, homeowners insurance, any HOA dues, and keeping the home maintained. Those are the conditions that keep the loan in good standing.
It has to be your primary residence.
If the home stops being where you live, the loan becomes due and has to be paid off or refinanced.
You can still sell.
If you sell, the loan is paid off from the sale, and whatever equity is left is yours.
You do not need to own your home outright to get a reverse mortgage. Many of my reverse mortgage clients still have a mortgage. The reverse mortgage pays that loan off, which removes the monthly payment they were carrying. It is a brand-new loan, so the interest rate from your old mortgage does not carry over. Depending on the program, reverse mortgage proceeds can pay off an existing mortgage, be taken as a lump sum, set up as a line of credit, paid out monthly, or a combination. You can also use a reverse mortgage to buy a home: you bring a down payment, the reverse mortgage funds the rest, and the size of the down payment is driven by your age rather than a fixed percentage. Age shapes the loan amount too. The older the youngest borrower, the larger the share of the home’s value the program will lend.
From my live show of June 4, 2025, which is entirely about reverse mortgages. Anything about rates in that episode is a snapshot of that week and is not current. Read the episode page or watch on YouTube. If you want the from-scratch explanation first, my 2022 episode How Does A Reverse Mortgage Actually Work? walks through the product step by step.
What happens to your heirs with a reverse mortgage?
Your heirs do not lose the house, and they are never stuck paying more than the home is worth. When the last borrower passes away or permanently moves out, the reverse mortgage comes due, and your heirs decide whether to keep the home, sell it, or hand it back to the lender.
A HECM reverse mortgage is non-recourse. Once a HECM comes due, your heirs have six months to settle it, with a possible six-month extension if they are actively working to sell the home or refinance the loan. Your heirs have the same choices they would have with any other mortgage: keep the home by paying off or refinancing the balance, or sell it, pay off the loan, and keep whatever equity is left. If the reverse mortgage balance has grown past what the home is worth, they can simply hand the home back to the lender and walk away. The shortfall is not their debt. What they inherit is the equity that remains, and whether that is a lot or a little depends on how long the loan ran, how the balance grew, and what the home is worth at the time.
That is the honest trade-off, and it is the one I want families to understand before they sign, not after.
What are the most common reverse mortgage myths?
These come straight from my June 2025 show on reverse mortgage myths. If you want the full version, that episode page has it.
“The bank owns your home.”
No. Title stays in your name or your trust. The lender has a lien, the same as on any mortgage.
“Your kids get stuck with the debt.”
No. The loan is non-recourse. Heirs can keep the home, sell it, or hand it back, and they never owe more than it is worth.
“You will be forced out of your home.”
Not as long as you live there, keep taxes and insurance paid, keep up any HOA dues, and maintain the home. There is no required monthly mortgage payment and no time limit on how long you can stay.
“There will be nothing left for the kids.”
Maybe, maybe not. The balance grows, so the equity you leave behind is smaller than if you had no loan. Whether anything is left depends on how long the loan runs and what the home is worth. Sometimes there is plenty. That is a planning question, not a rule.
“You have to own the home free and clear.”
No. The reverse mortgage can pay off your existing loan.
“You cannot sell a home with a reverse mortgage.”
You can sell at any time. The loan is paid from the sale and the rest of the equity is yours.
“It will cost you your Social Security.”
Regular Social Security and Medicare are not affected. Needs-based programs such as Medicaid and Supplemental Security Income can be, because proceeds sitting in your bank account may count as an asset. If you receive those benefits, get advice before you draw funds.
Heard one I did not list?
Bring it to the call. I would rather answer it on the phone than have it decide for you. Book a time or text me at 844-935-3634.
Which states do I do reverse mortgages in?
My office is in Lake Havasu City, Arizona, and Arizona is home base. I am licensed to originate mortgages, including reverse mortgages, in fourteen states:
- Arizona
- California
- Colorado
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Nevada
- North Carolina
- Oregon
- Tennessee
- Texas
- Washington
The standard federally insured HECM is available in all 50 states, so it is available in every state where I am licensed. Proprietary jumbo reverse mortgages are a different story: they carry heavy restrictions in Tennessee and are less available there, and their minimum age and guidelines differ from state to state. If you are in one of these states, I can tell you what applies where you live. License details are on my licensing page.
How do you talk to me about a reverse mortgage?
Call or text.
There is no form to fill out first. Call or text me at 844-935-3634, or book a time on my calendar and we will go through your situation on the phone. Bring your questions, and bring your kids’ questions too.
Or visit.
My office is at 2150 Kiowa Blvd N, Suite A-108, Lake Havasu City, AZ 86403.
Bring your questions. Bring your kids’ questions too.
We go through your situation, your home, and your state on the phone, and I give you real numbers for your age rather than a page full of guesses.
Prefer to write first? Text me at 844-935-3634 and tell me your state.
Reverse mortgage questions I get asked.
How does a reverse mortgage work?
You borrow against the equity in the home you live in. There is no required monthly mortgage payment, interest is added to the balance, and the balance grows over time. You keep title and stay in the home as long as you keep up taxes, insurance, HOA dues, and maintenance. The loan is repaid when you sell, move out permanently, or pass away.
How old do you have to be for a reverse mortgage?
For the federally insured HECM, the youngest borrower or spouse must be at least 62. Some proprietary reverse mortgages start lower, at 55 in most states but not all, and the rules vary by state. Contact me to find out what applies in yours.
Does the bank own my home with a reverse mortgage?
No. The title stays in your name or your trust. The lender holds a lien against the property, the same as with a traditional mortgage.
What happens to my heirs with a reverse mortgage?
A HECM is non-recourse. Your heirs have six months to settle the loan, with a possible six-month extension if they are actively working to sell or refinance. They can keep the home by paying off or refinancing the loan, sell it and keep the remaining equity, or hand it back to the lender if the balance is more than the home is worth. They never owe the difference.
Can I get a reverse mortgage if I still have a mortgage?
Yes. The reverse mortgage pays off your existing loan, which removes that monthly payment. It is a new loan, so your old interest rate does not carry over.
Can I buy a home with a reverse mortgage?
Yes. You bring a down payment, the reverse mortgage funds the rest, and you own the home without a required monthly mortgage payment. Your age determines how large the down payment needs to be.
Do you do reverse mortgages in Arizona?
Yes. My office is in Lake Havasu City, Arizona, and I originate reverse mortgages in Arizona and thirteen other states.
Reverse mortgage episodes from my show.
I have covered reverse mortgages live several times. Each episode page has key takeaways, chapters, and the questions listeners asked. Rates in older episodes are a snapshot of that week, not current terms.
Does the Bank Own Your Home With a Reverse Mortgage? The Biggest Myths, Debunked
Live showHow Does A Reverse Mortgage Actually Work?
Live showCan You Buy A Home Using A Reverse Mortgage?
Still working and looking at your equity for a different reason? A home equity line is a different tool for a different stage, and I explain it on my HELOC page. Selling a condo before you downsize? My condo financing page covers the 2026 project-review rules. Or browse all episodes.
Debbie Marcoux, Mortgage Loan Originator, NMLS #237926. Mortgages are originated through JMJ Financial Group, NMLS #167867, Arizona License #BK0943949. Office: 2150 Kiowa Blvd N, Suite A-108, Lake Havasu City, AZ 86403. Licensed in Arizona, California, Colorado, Florida, Georgia, Hawaii, Idaho, Illinois, Nevada, North Carolina, Oregon, Tennessee, Texas, and Washington. Verify any license on NMLS Consumer Access.
Equal Housing Opportunity. This page is general education about reverse mortgages and is not a commitment to lend, a loan offer, a rate quote, or financial, tax, or legal advice. Loans are subject to credit approval; terms and conditions apply. Program guidelines, eligibility, and age requirements vary by product and by state and change over time. Borrowers remain responsible for property taxes, homeowners insurance, HOA dues, and property maintenance. Debbie Marcoux is not a financial advisor; please consult qualified professionals about your individual situation.