Independent neighborhood guide, not affiliated with any homeowners association, property manager, city or official board.
Updated October 23, 2026
More homeowners are reaching retirement with a lot of equity in their homes. A reverse mortgage is one way to tap it without moving.
It can be a useful tool. It also deserves careful thought, because it uses your home as the source of the money.
Here are the basics.
How a reverse mortgage works
Homeowners 62 and older who live in the home as their main residence can borrow against their equity. The amount depends on your age, your home’s value and current interest rates. You can take the money as a lump sum, monthly payments or a line of credit, depending on the loan.
There’s no monthly mortgage payment. You still pay property taxes, insurance and upkeep, and falling behind on those can put the loan in default.
When the loan comes due
The loan is repaid when the borrower dies, moves out for good or doesn’t meet the loan terms, usually from the sale of the home. With the federally insured HECM program, you or your heirs generally won’t owe more than the home is worth, and any leftover equity goes to you or your estate.
Before you sign
- Get counseling: HUD-approved counseling is required for a HECM, and it’s worth taking seriously.
- Compare the costs: Fees and interest add up over time.
- Talk with family: It affects what you leave to heirs.
- Compare with selling: Sometimes right-sizing to a smaller home frees up more money with less risk.
If you’d like to see what your home could sell for, start with a home value estimate.
This is general information, not financial, tax or legal advice. Talk with your lender, CPA or attorney about your situation.
A simple plan for your reverse mortgages move
I’ve been helping people sell and buy homes across Minnesota, Wisconsin, and Florida for about two decades, and I build and remodel luxury homes too. I’ll help you see both what a property is and what it could be.
Getting the house ready, or making it yours
If you’re selling and want repairs handled before buyers see them, Super Crew Contractors can give you an estimate. If you’re ready for something custom, Ivy Lane Homes does luxury home building and remodeling. And a quick coverage check with Intrinsic Insurance before closing can save you a surprise. For the local picture, read my Chaska homes guide or browse neighborhoods in Chanhassen and Victoria.
Super Crew Contractors, Ivy Lane Homes and Intrinsic Insurance are owned by David Olson; you are free to use any contractor, builder or insurer.
Your next step in reverse mortgages
Every move is different. When you’re ready to talk about yours, I’m a call or text away.
Please note: I don’t handle rentals or property management. I work with sellers and buyers, and that’s where I can help you most in reverse mortgages.
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