The truth about reverse mortgages—2025 edition.
We break down the real pros and cons so you can make the smartest choice for your future. It’s your home, your equity—know your options.
✅ Pros of a Reverse Mortgage
- No Monthly Mortgage Payments – You don’t have to make monthly payments if you live in the home and meet the loan conditions.
- Stay in Your Home – You can continue living in your home while accessing its equity.
- Tax-Free Income – Funds received from a reverse mortgage are not considered taxable income.
- Flexible Payment Options – You can choose a lump sum, monthly payments, a line of credit, or a combination.
- Non-Recourse Loan – You or your heirs never owe more than the home’s value at the time of sale, even if the loan balance exceeds it.
- Improves Cash Flow – Helpful for retirees with limited income to cover expenses, healthcare, or home improvements.
❌ Cons of a Reverse Mortgage
- Reduced Home Equity – The loan balance increases over time, which can reduce the inheritance left to your heirs.
- Upfront Costs – Reverse mortgages come with fees, including closing costs, insurance premiums, and servicing fees.
Watch this video about 5 Benefits of a Reverse Mortgage
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