Rates & Loans
What is a reverse mortgage?
Updated Jul 1, 2026
The short answer
A reverse mortgage lets homeowners aged 62 and older convert part of their home equity into cash without a monthly mortgage payment; the most common type is the federally insured Home Equity Conversion Mortgage (HECM). The loan is repaid when the borrower sells, moves out, or passes away. Borrowers still must pay property taxes, insurance, and upkeep, or they risk default.
Key points
- For homeowners 62+, converts equity to cash.
- HECMs are insured by the federal government (HUD/FHA).
- No monthly mortgage payment, but the balance grows.
- Taxes, insurance, and maintenance remain the borrower’s duty.
Counseling is required
HECMs require independent HUD-approved counseling before you apply, so you understand the costs and obligations. Reverse mortgages are complex and are not right for everyone.
Sources
Every claim above traces to a public government source.
- ViewT1Home Equity Conversion Mortgages (reverse mortgages)
U.S. Department of Housing & Urban Development · Government / primary · 2024