Let's separate what's true from what isn't.
Reverse mortgages are one of the most misunderstood financial products available. Here are the most common myths — and the real facts behind each one.
A lot of what people "know" about reverse mortgages just isn't true.
Fear and misinformation keep many homeowners from exploring an option that could genuinely improve their retirement. Jenn's approach is always the same — give you the real information, answer every question honestly, and let you decide what's right for your family. These are the myths she hears most often, and the facts that clear them up.
Common Myths & The Real Facts
You immediately sign over ownership of your home.
You retain title to your home as long as you meet the loan guidelines — maintaining the property, paying property taxes, homeowners insurance, flood insurance, and HOA dues (if applicable), and avoiding extended absences longer than six months. As with any mortgage, a lien is placed on the property to secure future repayment, but the home is still yours.
Your children won't be left with any of the home equity.
While equity typically decreases over time, that doesn't mean nothing will be left. Several factors affect how much equity remains — home appreciation, length of the loan, and any optional payments you choose to make. There can still be meaningful equity left for your heirs.
Your children will be responsible for repaying the loan when you die.
A reverse mortgage is a non-recourse loan. The lender can only be repaid from the proceeds of the sale of the home — and never more than the home is worth. Even if the home decreases significantly in value, the maximum repayment is capped at the home's value. Your heirs are not personally liable. They do, however, have the option to refinance or purchase the home themselves if they choose.
A reverse mortgage requires monthly mortgage payments.
Monthly mortgage payments are not required with a reverse mortgage — that's one of the core benefits. You can choose to make payments if you wish, but you are not obligated to. You are still responsible for property taxes, homeowners insurance, flood insurance, and HOA dues.
You must own your home free and clear to qualify.
You do not need to own your home free and clear. Any existing debt on the home's title must be paid off at closing — typically using the reverse mortgage proceeds — and you must have adequate equity. But having a remaining mortgage balance does not disqualify you.
You are not allowed to sell your home if you have a reverse mortgage.
You can sell your home at any time. Just like any other mortgage, the reverse mortgage balance must be paid off at closing. There are also no prepayment penalties if you choose to pay off the loan early or make voluntary payments along the way.
Get a no-obligation Reverse Mortgage evaluation and quote today.
Additional HECM & Reverse Mortgage Facts
A few more things worth knowing before you make any decisions.
A reverse mortgage is a specialized loan for homeowners 62 and older — not a government grant. It is repaid when the home is sold, the last borrower passes away or permanently leaves, or loan terms are not met.
The loan is eligible only for the borrower's primary or principal residence — not a vacation home or investment property.
FHA-insured HECM loans are insured by the Federal Housing Administration, providing protection for borrowers, lenders, and beneficiaries.
HUD counseling from an independent HUD-approved third-party counselor is required before incurring any costs associated with the loan.
Proceeds from a reverse mortgage are typically not subject to personal income tax. Consult your tax advisor for guidance on your specific situation.
Reverse mortgage proceeds could affect government needs-based programs such as Medicaid and Medi-Cal. Those receiving such benefits should consult a professional before moving forward.
A reverse mortgage loan is secured by a lien on the home. Failure to comply with loan terms — such as paying taxes and insurance — could result in foreclosure.
Many retirees use reverse mortgages as a strategic retirement planning tool — not just a last resort. Program rates, fees, and terms are subject to change and not available in all states.
1 There are some circumstances that will cause the loan to mature and the balance to become due and payable. The borrower is still responsible for paying property taxes, homeowners insurance, and maintaining the property to HUD standards. Failure to do so could make the loan due and payable. Credit is subject to age, income standards, credit history, and property qualifications. Program rates, fees, terms, and conditions are not available in all states and subject to change.
2 Borrowers should seek professional tax advice regarding reverse mortgage proceeds.
Still have questions? Jenn has answers.
No pressure, no jargon. Just an honest conversation about whether a reverse mortgage makes sense for you.