A reverse mortgage solves a real problem: getting at the equity in your home with no monthly payment, when retirement income won’t support an ordinary loan. The price is that the equity you spend won’t pass to your estate. That’s neither good nor bad in itself. It’s a decision to make with numbers.
The table to insist on
Ask for the projected balance at five, ten and fifteen years. Nobody pays it down, so interest gets added to the principal and the balance grows every year. That one table answers most of the questions families raise afterward.
Compare before you get there
- A home equity line of credit, if income supports the interest.
- An ordinary refinance, if the ratios still work.
- Selling and buying something smaller.
- Family help, structured in writing.
These usually cost less. A reverse mortgage comes into play when none of them work, often because income can’t support any monthly payment at all.
When the loan comes due
On a sale, a permanent move, or a death. Heirs receive the property’s value minus the accumulated balance. That’s exactly why this conversation belongs with your family and a notary, not alone in front of a contract.
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