Reverse Mortgage FAQs

Not as long as you meet the terms of the loan. You need to live in the home as your primary residence and stay current on your property taxes, homeowners insurance, any HOA dues, and basic upkeep. If you keep those obligations, the loan is not called due while you live there. This is why I walk every client through the responsibilities honestly before anything is signed, so there are no surprises later. You can see the full picture on my how it works page.

No. There is no required monthly mortgage payment. The balance grows over time as interest and fees are added, and it is repaid later, usually when the home is sold or the loan otherwise becomes due. You are still responsible for property taxes, insurance, and upkeep, so it is not a cost-free arrangement, but it can remove the pressure of a monthly loan payment from your budget.

Almost anything. Many Arizona homeowners use the funds to pay off an existing mortgage, cover healthcare or in-home care, handle home repairs, create a cushion for everyday expenses, or simply add breathing room to a fixed income. The money is yours to direct. My role is to help you think through whether it serves the goal you actually care about, not to tell you how to spend it.

It depends on a few factors: the age of the youngest borrower, the value of your home, and current interest rates. Generally, the older you are and the more equity you hold, the more you may be able to access. There are also program limits set each year. I can give you a realistic estimate for your specific situation rather than a one-size-fits-all number. To gauge whether the amounts make sense for your plans, my is it right for you page is a good place to start.

There are real costs, and I believe you deserve to see them clearly. Upfront, you may pay an origination fee, mortgage insurance, an appraisal, and standard closing costs. Ongoing, interest accrues on the balance and there is an annual mortgage insurance charge, so the amount owed rises over time. Because these costs are meaningful, a reverse mortgage is not the right tool for everyone. I will lay the numbers out plainly so you can weigh them against the benefit before you decide.

Generally, the funds are treated as loan proceeds rather than income, so they are typically not taxed. That said, everyone's situation is different, and reverse mortgage funds can affect certain need based benefits. I am a real estate professional, not a tax advisor, so I always encourage you to confirm the details with your tax advisor or accountant before you count on any specific outcome.

Your heirs have choices. When the loan becomes due, they can keep the home by repaying the balance, often through refinancing, or they can sell it and keep any remaining equity. A HECM reverse mortgage is a non-recourse loan, which means neither you nor your heirs ever owe more than the home is worth at the time it is sold. I walk families through exactly what to expect on my for heirs and family page so no one is left guessing.

Yes. Federal rules give you a right of rescission, a short window after signing during which you can cancel the loan without penalty. This is one of the consumer protections built into the program, and it exists precisely so you never feel locked into a decision made in a rushed moment. I would rather you take your time and feel certain than sign under any pressure.

Yes. This is called a HECM for Purchase, and it lets qualifying buyers 62 and older use a reverse mortgage to buy their next home. It is a popular option for homeowners who want to downsize, move closer to family, or find a place better suited to aging in place, all without taking on a monthly mortgage payment. You can read how it works on my HECM for purchase page.