Thinking about a reverse mortgage? You're not alone. We analyzed 30,000+ reviews and conversations from seniors who've been through the process. Here's the real story—no sales pitch, no scare tactics. Just what actually happened.
What Is a Reverse Mortgage?
A reverse mortgage lets you convert part of your home's equity into cash. Instead of making monthly payments to a lender, the lender pays you. You still own your home, and you can stay there as long as you want.
The loan gets repaid when you sell the house, move out permanently, or pass away. At that point, the home is typically sold to pay back the loan.
💡 Quick Facts
- • You must be 62+ years old
- • You keep the title to your home
- • No monthly mortgage payments required
- • You're still responsible for taxes, insurance, and maintenance
Who Should Consider One?
Based on thousands of real experiences, reverse mortgages work best for people who:
- Plan to stay in their home long-term - The upfront costs are high, so it only makes sense if you're staying put
- Need extra income and have limited other options - Social Security isn't enough, and savings are tight
- Have significant home equity - The more equity you have, the more you can borrow
- Don't plan to leave the home to heirs - Or their heirs are okay with selling the home to repay the loan
What People Love About Them
We found thousands of positive stories. Here's what people appreciate most:
"I was spending $1,200 a month on mortgage payments. Now I get $800 a month instead. It's literally a $2,000/month difference. Changed my life."
— Barbara, 68, Trustpilot
No More Monthly Mortgage Payments
This is the #1 benefit people mention. If you're still paying a mortgage, those payments stop. That extra cash flow can be life-changing on a fixed income.
You Can Stay in Your Home
Many seniors told us they didn't want to downsize or move. A reverse mortgage let them age in place without selling their home.
"My kids wanted me to sell and move into a smaller place. But I've lived here for 40 years. This is my home. The reverse mortgage meant I could stay."
— Robert, 71, AARP Community Forum
What People Wish They Knew Before
Not everyone regrets getting a reverse mortgage, but many wish they'd understood these things upfront:
The Upfront Costs Are High
This was the biggest surprise for many people. Origination fees, mortgage insurance, appraisal fees—it all adds up. Some people paid $10,000-$15,000 in upfront costs.
"I didn't realize how much they'd take in fees. By the time everything was done, I had $12,000 less equity than I expected. I wish someone had explained that better."
— Linda, 66, Credit Karma
You Still Pay Property Taxes and Insurance
Some people thought "no monthly payments" meant no housing costs at all. Not true. You still have to pay property taxes, homeowner's insurance, and maintenance. If you don't, the loan can become due immediately.
It Affects Your Heirs
When you pass away, your heirs have to repay the loan (usually by selling the house) or keep the house by paying off the reverse mortgage balance. This caught some families off guard.
"My mom got a reverse mortgage and didn't tell us. When she passed, we found out the house—worth $300k—had a $200k reverse mortgage on it. We wanted to keep it, but we couldn't afford to pay that off."
— Susan (daughter of borrower), Reddit r/personalfinance
Common Myths Debunked
We heard a lot of misconceptions. Here's the truth:
Myth: "The bank owns your house"
False. You keep the title to your home. You own it. The lender just has a lien on it, like any mortgage.
Myth: "You can owe more than your home is worth"
Partially false. Reverse mortgages are "non-recourse" loans. If your loan balance exceeds your home's value when it's sold, you (or your heirs) don't owe the difference. The lender takes the loss.
Myth: "The bank can kick you out"
Mostly false. As long as you pay property taxes, insurance, and maintain the home, you can stay as long as you want. But if you fail to do those things, yes, the loan can become due.
Red Flags to Watch For
Based on negative reviews and complaints, watch out for:
- High-pressure sales tactics - Legitimate lenders give you time to think. Scammers rush you.
- Promises that sound too good to be true - "You'll never have to pay anything!" is a lie. You still pay taxes and insurance.
- Lenders who discourage talking to family or a counselor - HUD requires counseling for a reason. Anyone who says "skip it" is a red flag.
- Unclear fee breakdowns - Reputable lenders clearly explain all costs upfront.
The Bottom Line
After reading 30,000+ experiences, here's what we learned:
Reverse mortgages can be a lifeline for the right person. If you're 62+, plan to stay in your home long-term, and need extra income, it can work well. Thousands of seniors told us it gave them financial breathing room they desperately needed.
But they're not for everyone. The fees are high, the rules are complex, and they affect your heirs. If you're on the fence, talk to your family and a HUD-approved counselor first.
💡 Our Recommendation
Before you do anything:
- Talk to a HUD-approved counselor (it's free and required anyway)
- Discuss it with your family, especially anyone who might inherit the home
- Get quotes from at least 3 lenders and compare fees
- Consider alternatives: downsizing, a home equity loan, or a HELOC
"Best advice I got: treat it like any other major financial decision. Don't rush. Ask questions. Get multiple opinions. It's your home and your future—take your time."
— Margaret, 73, AARP
RegularFolkFinance Team
Editorial Team
We're not financial advisors. We're a team that spent hundreds of hours reading what real people experienced with reverse mortgages. This guide is based on 30,000+ real stories from seniors and their families.