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Reverse Mortgage Pros and Cons

Review the advantages and disadvantages of getting a reverse mortgage so you can make an informed decision.


Reverse mortgages offer the following advantages and benefits:

  • It provides tax-free funds for monthly income or a lump sum.
  • Borrower can continue to live in their home and keeps the title.
  • Borrower does not need to make any monthly payments.
  • It can pay off existing home mortgage.
  • It does not affect eligibility for Medicare and Social Security benefits.
  • Heirs can inherit remaining home equity after loan has been paid.
  • Heirs will not owe more than the sale price of the home if loan balance is greater.


Some of the disadvantages of a reverse mortgage include:

  • Inheritance for heirs may decrease over time as funds are spent.
  • Fees can be higher than a traditional mortgage.
  • Eligibility for Medicaid may be affected, depending on specific program requirements.
  • Many common myths dissuade people from considering a reverse mortgage.
  • Some lenders or agents may pressure you into buying other financial products as part of the reverse mortgage. This is illegal.

Like other loans, there are certain responsibilities and costs that come with a reverse mortgage. It’s important that you consider these carefully and weigh them with the benefits you can receive by getting this type of loan.

Afterwards, you’ll be more confident in taking the next step.


Ask our reverse mortgage experts to receive specific answers as well as qualified financial advice. You may also visit our FAQ to check whether we’ve already covered your question.

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