Should I Get a Reverse Mortgage?

If you’re 62 or older and own a home with equity, you’ve probably wondered: “Should I get a reverse mortgage?” It’s one of the most common questions we hear from seniors and their families. Reverse mortgages can be a financial lifeline in the right situation—but they can also create big risks that many homeowners don’t fully understand.

In this article, based on my recent video, I’ll break down exactly what a reverse mortgage is, who qualifies, the pros and cons, and five alternatives you should consider before making a decision.

What Is a Reverse Mortgage?

A reverse mortgage is a special type of loan designed for homeowners who are at least 62 years old and have equity in their primary residence. Instead of making monthly mortgage payments, the lender pays you—either in a lump sum, monthly payments, or a line of credit.

If you still have a traditional mortgage, part of the reverse mortgage can be used to pay that off. You’re still responsible for property taxes, insurance, and basic upkeep, but the monthly mortgage payment goes away.

The loan comes due when you move out, sell the house, or pass away.

Who Qualifies for a Reverse Mortgage?

To qualify:

1. You must be 62 or older.
2. The property must be your primary residence.
3. You must have sufficient equity in your home.
4. For FHA-insured loans (HECM), you must complete a counseling session to ensure you understand the loan terms.

Pros of a Reverse Mortgage

From my video, here are the biggest benefits of a reverse mortgage:

• No more monthly mortgage payment – Your existing mortgage gets paid off, freeing up cash flow.
• Consolidate debts – Use funds to pay off credit cards, auto loans, or other debts.
• Home improvements – Upgrade your home with a new kitchen, bath, or repairs that boost property value.
• Supplement retirement income – Reverse mortgages can bridge income gaps, especially after retirement.
• Cover in‑home care costs – Funds can be used for caregiving or medical assistance.

Cons of a Reverse Mortgage

While these benefits sound appealing, my video also emphasizes serious downsides:

• High upfront costs – Reverse mortgages often carry counseling fees, insurance premiums, and higher interest rates.
• Still responsible for taxes and insurance – Failure to pay can result in foreclosure even without a monthly mortgage payment.
• Impact on benefits – Proceeds may affect eligibility for Medicaid or other assistance programs.
• Complexity and scams – Reverse mortgages are complicated and can be used to target seniors with predatory tactics.
• Loss of equity for heirs – Over time, interest and fees reduce your home’s equity. Many heirs are left with little or nothing after a reverse mortgage is paid off.

In my experience, I’ve met many families who were surprised to find that a reverse mortgage left almost no inheritance.

Alternatives to a Reverse Mortgage

Before committing, here are five alternatives that might better fit your goals:

1. Sell and downsize – Free up cash and reduce living costs by moving to a smaller, less expensive property.
2. Refinance your current mortgage – Lower your monthly payment with a conventional refinance.
3. Take out a HELOC (Home Equity Line of Credit) – Borrow only what you need and pay interest only when you use it.
4. Home equity loan – A second mortgage provides a lump sum for repairs, care costs, or other expenses.
5. Rent out part of your home – Lease a basement or extra room for supplemental income.

Considering Selling Instead?

If you’ve been thinking, “Maybe I should just sell,” this can often be the simplest and most financially secure option.

At Capitol Cash Offer, we buy houses in Washington, DC, Maryland, and Virginia for cash. We make fair, fast offers, handle repairs, and close on your timeline. Many of our senior clients choose this route because it lets them avoid complicated loans and walk away with a clean cash payout.

Watch the full video here:

Should You Get a Reverse Mortgage?

A reverse mortgage can be a valuable tool if you need to stay in your home and access your equity, but it comes with costs and long-term risks. For homeowners who prefer a simpler, more immediate solution, selling the property for cash may be a better alternative.

If you’re unsure what’s right for you, start with a no-obligation cash offer to see what your home is worth. This can help you compare your options with real numbers.

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Final Thoughts

Reverse mortgages aren’t one-size-fits-all. Understand the pros, cons, and alternatives before you decide. And if you’re leaning toward selling, we’re here to help.

Ready to explore your options?
Get a fast, fair cash offer today from CapitolCashOffer.com or call 202‑235‑2323.