Reverse Mortgages: 10 Things You Must Know

Reverse mortgages can be complicated so it’s imperative that you understand how the loan is repaid, the monthly costs and potential scams to look out for.

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(Image credit: Getty Images)

Get a large wad of cash! Never make a mortgage payment again! Stay in your home as long as you want! Sounds like a great deal, right? Well, for some homeowners 62 and over, a reverse mortgage can be a great deal and the solution to some financial or cash flow problems.

For others, it's more perilous than promising. If you’re considering a reverse mortgage, there’s a lot you need to know before signing on the dotted line. Keep in mind there is no such thing as free money. Even though there are no monthly payments like a mortgage, there are costs associated with a reverse mortgage, interest and fees, that accumulate during the term. 

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Donna LeValley
Personal Finance Writer

Donna joined Kiplinger as a personal finance writer in 2023. She spent more than a decade as the contributing editor of J.K.Lasser's Your Income Tax Guide and edited state specific legal treatises at ALM Media. She has shared her expertise as a guest on Bloomberg, CNN, Fox, NPR, CNBC and many other media outlets around the nation. 

With contributions from