What a Reverse Mortgage for Income Is
A reverse mortgage lets homeowners 62 and older convert home equity into income — as a lump sum, monthly payments, or a line of credit — without monthly mortgage payments, while continuing to live in the home. It's a retirement-income tool.
Who It's For
- Homeowners 62+ with substantial equity
- Retirees seeking to supplement fixed income
- Those who want to age in place while accessing equity
- Borrowers planning a tax-efficient retirement income strategy
How It Works
You access equity while remaining in your home, with no required monthly mortgage payments — the loan is repaid when you sell, move, or pass away. You remain responsible for taxes, insurance, and maintenance. Because reverse mortgages are complex and reduce the equity you leave behind, counseling is part of the process.
Frequently Asked Questions
Do I still own my home with a reverse mortgage?
Yes — you retain ownership and live in the home. The loan is repaid when you sell, move out permanently, or pass away.
Are there monthly payments?
No required monthly mortgage payments. You remain responsible for property taxes, insurance, and maintenance.
How is the income taxed?
Reverse mortgage proceeds are generally not taxed as income, but you should confirm with a tax advisor for your situation.