In short
A reverse mortgage is a loan that lets homeowners, typically 62 or older, convert part of their home equity into cash while living in the home, with no required monthly mortgage payment. The balance grows over time and is usually repaid when the home is sold or the last borrower leaves.
Reviewed by Ron Pippin, NMLS #218333 · Last updated October 21, 2026
How does a reverse mortgage work, and is it right for me?
A reverse mortgage lets eligible homeowners, typically 62 or older, borrow against their home equity while they keep living in the home. You keep the title, and no monthly mortgage payment is required as long as you meet the loan's terms. The balance grows over time and usually comes due when the last borrower sells, moves out permanently or passes away. You must keep living in the home and keep up with property taxes, insurance and maintenance. Whether it's right for you depends on your cash flow, your plans and what you want left in equity. I'll walk through those numbers with you and compare alternatives before you decide.
Key takeaways
A reverse mortgage can let homeowners, typically 62 or older, turn part of their home equity into cash without a required monthly mortgage payment. It can also be a big decision with real costs. I'll explain how it works, what it costs, what you're still responsible for, and how it compares with your other options. No pressure. And if it isn't the right fit for you, I'll tell you.
Reverse Mortgages in Ogden, UT
If you've lived in your home a long time, a good share of your net worth may be sitting in the walls. A reverse mortgage is one way to put some of that equity to work in retirement without selling and without taking on a monthly mortgage payment.
It's also a loan with real costs and real trade-offs. My job is to translate it into plain English so you can decide whether it belongs in your plan. Sometimes it does. Sometimes it doesn't. I'll tell you either way.
How a Reverse Mortgage Works
A reverse mortgage is generally available to homeowners who are typically 62 or older and have meaningful equity in the home they live in. The most widely known version is the FHA-insured Home Equity Conversion Mortgage, or HECM.
Here's the basic idea:
- You keep the title. The home stays yours.
- No required monthly mortgage payment. You can choose to make payments, but you aren't required to as long as you meet the loan's terms.
- You choose how to receive funds. Depending on the program, that can be a lump sum, monthly payments, a line of credit, or a combination.
- The balance grows over time. Because you aren't paying it down, interest and fees are added to what you owe.
- The loan comes due later. Typically when the last borrower sells, moves out for good, or passes away. The home is usually sold or the loan is paid off at that point.
If you still have a regular mortgage, the reverse mortgage pays it off first. Whatever room is left is what's available to you.
What You Still Have to Do
This part matters, and I want it clear up front. A reverse mortgage doesn't make the house free to own. You must keep:
- Living in the home as your primary residence.
- Paying your property taxes.
- Carrying homeowners insurance (and flood insurance if required).
- Maintaining the home.
Fall behind on any of those and the loan can be called due. So before we go any further, we'll look at whether those costs fit comfortably in your budget, with room left for life.
Counseling Comes First
For a HECM, you're required to meet with a HUD-approved counselor before you apply. The counselor is independent of me and of any lender. I think it's a good thing. It gives you a second set of eyes and a chance to ask questions without anyone selling you anything. Bring your family if you'd like. The reason why I'm asking you to involve them is simple: this decision affects your estate, and it's easier when everyone understands it.
What I Look at With You
A reverse mortgage changes three things: your cash flow, your loan balance, and the equity left over. I'll walk you through each one.
- Cash flow. How much does it free up each month if it pays off an existing mortgage? What payout option fits how you'll actually use the money?
- Loan balance. How the balance is expected to grow over time, and what that means for you.
- Remaining equity. What may be left for you, a future move, or your heirs.
- Costs. Upfront mortgage insurance, origination, closing costs and ongoing charges. I'll explain every line.
Then I'll compare it with alternatives, such as a HELOC, a traditional refinance, or simply downsizing. I'll tell you the difference between them and why I'd recommend one over another.
Buying or Refinancing With a Reverse Mortgage
A reverse mortgage isn't only for staying put. If you're planning your next move, a reverse mortgage for purchase may let you buy a home without taking on a monthly mortgage payment. If you already have a mortgage, or even an existing reverse mortgage, a reverse mortgage refinance may be worth a look.
No Pressure, Just Straight Answers
As an independent broker at Strategic Mortgage, I can compare options from multiple lenders instead of fitting you into one company's product. You'll understand what you gain, what you give up, and what it costs. If it isn't the right fit, I'll say so.
Let's run some numbers together. Call or text me with your questions, even if you're just curious.
Everything on this page is general information for illustration only. It is not an offer or a commitment to lend, and it does not reflect current interest rates or guaranteed terms. Eligibility, program rules and costs change and depend on your situation. Call or text me for details that fit you.
Quick facts
- Typical age
- 62 or older
- Monthly mortgage payment
- Not required while you meet the loan's terms
- Ongoing obligations
- Occupancy, property taxes, insurance and maintenance
- Counseling
- HUD-approved counseling required for a HECM
- How funds are received
- Lump sum, monthly payments, line of credit or a combination (program-dependent)
- Occupancy
- Primary residence
Is this loan right for you?
Who it's for
- Homeowners typically 62 or older with meaningful equity in the home they live in
- Retirees who want to eliminate an existing monthly mortgage payment
- People who plan to stay in their home and can keep up with taxes, insurance and maintenance
- Homeowners who want equity available as a lump sum, monthly payments or a line of credit
Who it may not fit
- Homeowners who plan to move or sell in the near future
- Anyone who would struggle to keep paying property taxes, insurance and upkeep
- Borrowers whose top priority is leaving the most possible equity to heirs
Pros and cons
Pros
- No required monthly mortgage payment while you meet the loan's terms
- You keep the title and keep living in your home
- Flexible ways to receive funds, depending on the program
- Can pay off an existing mortgage and free up monthly cash flow
Trade-offs to weigh
- The loan balance grows over time, reducing your remaining equity
- Upfront and ongoing costs can be significant
- Taxes, insurance and maintenance are still your responsibility
- Less equity may be left for a future move or for heirs
Frequently asked questions
Do I still own my home with a reverse mortgage?
Yes. You keep the title. The lender has a lien on the home, just like a regular mortgage, and the loan is repaid later, usually when the last borrower sells, moves out permanently or passes away.
Do I have to make monthly payments?
No monthly mortgage payment is required on a reverse mortgage, though you can choose to make payments. You do still have to pay property taxes, homeowners insurance and keep the home maintained. If those fall behind, the loan can come due.
What happens to the home when I pass away?
The loan becomes due. Your heirs can typically sell the home and keep any equity left after the loan is repaid, or pay off the loan if they want to keep the house. I'll explain how this works so your family isn't surprised.
Is counseling required?
Yes. For a HECM, the FHA-insured reverse mortgage, you meet with an independent HUD-approved counselor before applying. I encourage it, and I encourage you to bring family members into the conversation too.
What does a reverse mortgage cost?
Costs can include upfront and ongoing mortgage insurance, origination, closing costs and interest that's added to the balance over time. Your actual costs depend on your scenario and the day's market. I'll walk you through every line before you commit.
What if a reverse mortgage isn't a good fit for me?
Then I'll tell you. We can look at alternatives like a HELOC, a traditional refinance or downsizing, and I'll explain the difference so you can decide with confidence.
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Last updated October 21, 2026 · Reviewed by Ron Pippin, NMLS #218333. This page is educational and not a commitment to lend; program details change — ask for current figures.