You’ve worked hard, built equity in your home, and now you’re wondering: Should I tap into it to enjoy retirement—or leave it untouched for my kids?
Money decisions can feel complicated—but they don’t have to be. I’m here to help you simplify the process, avoid common pitfalls, and stay true to your values.
Let’s talk about one of the most misunderstood financial tools for retirees: the reverse mortgage.
What Is a Reverse Mortgage?
A reverse mortgage is a loan available to homeowners age 62 or older that allows them to convert part of their home equity into cash—without having to sell their home or make monthly mortgage payments. The most common type is the Home Equity Conversion Mortgage (HECM), which is federally insured.
Sounds simple enough, right? But the details—and the impact—are worth digging into.
How Does It Work?
Instead of making payments to a lender, the lender makes payments to you. You can receive the money in a lump sum, monthly payments, a line of credit, or a combination. Interest and fees accumulate over time, and the loan is repaid when you sell the house, move out for more than 12 months (such as into assisted living), or pass away.
Pros of a Reverse Mortgage
- Access to Home Equity Without Selling
You get cash while staying in your home. - No Monthly Mortgage Payments
This can ease your monthly budget, especially in retirement. - Flexible Disbursement Options
You choose how and when you receive the funds. - Non-Recourse Loan
You (or your heirs) will never owe more than the home is worth, even if the loan balance exceeds its value.
Cons of a Reverse Mortgage
- Fees and Interest Add Up Quickly
You’re not making payments, but interest is still accruing. - You’re Using Up Home Equity
This reduces the inheritance you might leave or your ability to move later. - Risk of Losing the Home
If you fail to pay property taxes, homeowners insurance, or maintain the home, you could face foreclosure. - It’s Complex
Reverse mortgages are not a quick decision. They come with fine print, counseling requirements, and long-term implications.
Myth Busters
- “The bank takes your house.” → False. You retain ownership.
- “You can be kicked out at any time.” → False. As long as you meet requirements.
- “Reverse mortgages are scams.” → Not inherently—many are government-insured.
So…Is a Reverse Mortgage Right for You?
It might be—if you:
- Plan to stay in your home long-term
- Need extra cash for retirement expenses
- Don’t have heirs counting on the equity
- Understand the long-term costs
It might not be—if you:
- Want to leave the home to your children
- May need to move or downsize soon
- Haven’t explored other options (like downsizing, home equity loans, or retirement income strategies)
A Better Question: What’s Your Purpose?
At Inspire Advisors, we believe financial tools should serve your purpose—not the other way around. A reverse mortgage isn’t “good” or “bad”—it’s just one option among many. The key is aligning your decision with your values, your needs, and your vision for the future.
Let’s Talk
Whether you’re considering a reverse mortgage or just wondering how to make the most of your retirement income, I’d love to help you sort through your options.
Let’s explore whether a reverse mortgage helps or hinders your long-term goals. Schedule a free consultation—no pressure, just wisdom.
Wherever you are on your financial journey, remember—your money is a tool, not a trophy. It’s meant to reflect your values, fuel your purpose, and honor God in the process.
You don’t have to figure it out alone. I’m here to walk with you—one wise, faith-filled decision at a time.