Q: I am 71 and retired. My house is paid off, but money is tight every month, and I keep seeing ads for reverse mortgages. My son says they are a scam, and that the bank will end up owning my home. Is that true, or is this something I should actually consider? — Patricia

A: A reverse mortgage is not a scam, nor is it a miracle. Like any loan, it is simply a tool, and what matters is whether it is the right one for your situation. Let me first put your son’s worry to rest, then walk through how these loans work and who should use one.

Start with the fear, because it is the one I hear most. The bank does not take your home. You keep the title and continue living there, exactly as you do now.

What changes is the direction of the money. With a regular mortgage, you pay the bank each month. With a reverse mortgage, the bank pays you, and you make no monthly payments.

You can take the money as a lump sum, as a line of credit you draw on as needed, as a monthly check, or as a combination of those options. To qualify, you generally must be at least 62 and have significant equity in the home.

The proceeds are typically not taxed and usually do not affect your Social Security or Medicare.

The loan does not need to be repaid until the last borrower passes away, sells the home, or moves out for good, such as entering long-term care. At that point, the home is often sold to pay off the balance, and anything left over belongs to you or your heirs.

These loans are “non-recourse,” which means that if the balance ends up larger than the home is worth, the lender can look only to the house, not to you or your estate, for the difference. Your children would never inherit the debt, and your other assets would remain protected.

However, like most things, there are trade-offs. Upfront costs are high, and because you are not paying down the interest, the balance grows over time and erodes your home’s equity.

You also remain responsible for property taxes, hazard insurance, and upkeep. Fall behind on those, and the lender can foreclose, so this only works if you can comfortably keep them current.

A reverse mortgage makes sense if you plan to stay in this home for the long haul and if leaving it free and clear to your children is not your top priority.

It is the wrong tool if you expect to move within a few years or if passing the home to your heirs debt-free means more to you than the extra income today.

The law requires you to complete counseling with an approved advisor before you sign, which is a good thing, so use it.

And whatever you decide, read the paperwork carefully and keep asking questions until the answers make sense to you.

©2026 South Florida Sun Sentinel. Visit at sun-sentinel.com. Distributed by Tribune Content Agency, LLC.