Reviewed by Ahoo Khalessi, Division Manager & Loan Officer, NMLS #2239510 · Last updated June 2026
How does a reverse mortgage work?
Instead of you paying the lender each month, the lender pays you from your equity. The balance is repaid when you sell, move out, or pass away — typically from the home's sale. You remain responsible for taxes, insurance, and upkeep.
Ways to receive the funds
Common options include a lump sum at closing, fixed monthly payments for added income, or a growing line of credit you draw as needed.
Is it right for you?
Reverse mortgages can ease cash flow in retirement, but they reduce the equity left to heirs and have specific costs and rules. We'll walk through whether it fits your goals and compare it to alternatives like a HELOC.
Why CTC Equity
We explain reverse mortgages plainly, with no pressure, and compare them honestly against other equity options so you can decide with full information.
Common questions
Who qualifies for a reverse mortgage?+
Generally homeowners age 62 or older with significant equity in their primary residence. Specific requirements apply.
Do I still own my home?+
Yes. You keep title and can live there as long as it remains your primary residence and you meet the loan terms (taxes, insurance, upkeep).
Do I make monthly payments?+
No monthly mortgage payment is required. The loan is repaid later, usually when the home is sold.
How do I receive the money?+
As a lump sum, monthly payments, a line of credit, or a combination.
How is it different from a HELOC?+
A HELOC requires monthly payments and is available at any qualifying age; a reverse mortgage requires no monthly payment and is for older homeowners. We compare both.
Related
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