Define the goal before choosing the loan
What are you trying to address: monthly spending, a future move, access to funds, or a contingency plan? I encourage homeowners and advisors to name the goal first. That makes it easier to compare a reverse mortgage with other available choices.
Understand the obligations
A reverse mortgage is a loan. For a HECM, borrowers must meet occupancy requirements, pay property taxes and insurance, and maintain the home. The balance can grow as interest and fees accrue. Repayment is generally required when the home is sold or the borrower no longer lives there, subject to applicable loan terms and protections.
Make the tradeoffs visible
Ask for an explanation of upfront and ongoing costs, projected loan balances, remaining equity, and what happens if your circumstances change. A projection is an illustration based on assumptions, not a promise about future outcomes. Your family’s plans for the home belong in this discussion too.
Bring your advisor into the conversation
With your permission, I can help your financial advisor compare mortgage scenarios and clarify the loan mechanics. Your advisor can assess how those scenarios interact with investments, taxes, cash flow, and your broader plan. Independent counseling is required for a HECM.
Further reading: CFPB reverse mortgage education