Reverse Mortgage Rates

A reverse mortgage — most commonly an FHA-insured Home Equity Conversion Mortgage (HECM) — lets homeowners 62 and older convert home equity into cash as a lump sum, monthly payments, a line of credit, or a combination. No monthly principal and interest payment is required. The loan is repaid when the last borrower sells the home, moves out permanently, or passes away.

It’s either 62+ or 55+. A standard FHA-insured HECM requires the youngest borrower on title to be at least 62. If you’re 55 to 61, you may still qualify through a special proprietary (non-HECM) reverse mortgage program — it’s a different loan with its own guidelines, lenders, and pricing, and it isn’t available in every state. A non-borrowing spouse under 62 can often remain protected in the home under HECM rules — we’ll review your exact situation.

Yes. Title remains in your name, exactly as it does with a traditional mortgage. You must continue paying property taxes and homeowners insurance and keep the home maintained. The lender never takes ownership as long as those obligations are met.

Your available amount (the principal limit) is based on the age of the youngest borrower, the home’s appraised value or the HECM lending limit, and current expected interest rates. Older borrowers with more equity qualify for more. Any existing mortgage must be paid off first from the proceeds. We’ll run a free personalized illustration.

You must be 62+ (or 55+ under a special proprietary program), occupy the home as your primary residence, hold significant equity, and complete HUD-approved reverse mortgage counseling. Lenders also run a financial assessment of your ability to cover taxes, insurance, and upkeep — if there’s a shortfall, a Life Expectancy Set Aside (LESA) may be required. Costs include an FHA mortgage insurance premium, origination fee, appraisal, and normal closing costs, most of which can be financed into the loan.

Your loan balance grows over time instead of shrinking, upfront costs are higher than a typical refinance, and it reduces the equity left to your heirs. It also isn’t a good fit if you plan to move within a few years. For some homeowners a HELOC, a cash-out refinance, or downsizing is the better answer — we’ll tell you honestly if that’s the case.

Heirs can keep the home by paying off the loan balance (often through a refinance) or sell it and keep any remaining equity. HECMs are non-recourse loans — neither you nor your heirs ever owe more than the home’s value at the time of repayment, even if the balance exceeds it.

Reverse mortgage proceeds are loan advances, not income, so they generally are not taxable and do not affect Social Security or Medicare benefits. Needs-based programs such as Medicaid or SSI can be affected if funds accumulate in your accounts. Confirm your specific situation with a tax or benefits advisor.

Yes. There is no prepayment penalty. You can make voluntary payments at any time to hold down the balance, pay it off in full, or refinance out of it. With the HECM line of credit, amounts you repay can even become available to borrow again.

Yes — HECM for Purchase lets a qualified buyer 62+ use reverse mortgage proceeds plus a down payment to purchase a new primary residence with no monthly mortgage payment. It’s a popular option for right-sizing in retirement.