If you’re approaching age 62, chances are you’ve already come across the topic of reverse mortgages, whether through mailers, online ads, or conversations with friends. Designed to help retirees achieve financial flexibility and peace of mind, this loan option can feel either inviting or overwhelming depending on how it’s presented.

As with any major financial decision, it’s important to focus on the facts—not the marketing. Here are some straightforward points to help you understand what a reverse mortgage actually involves.

1. Married Couples Can Both Be on the Loan

If both spouses are age 62 or older, they can be listed as co-borrowers on the reverse mortgage. This is a key protection—if one spouse passes away or moves permanently into an assisted living facility, the other can continue living in the home without disruption. The agreement remains unchanged as long as one borrower continues to occupy the home as their primary residence.

2. No Monthly Mortgage Payments

One of the most significant benefits of a reverse mortgage is that borrowers are not required to make monthly mortgage payments. Whether it’s a standard reverse mortgage or one used to purchase a home, the financial responsibility is limited to things like property taxes, homeowner’s insurance, HOA dues (if applicable), utilities, and basic upkeep. As long as the home remains your primary residence, no mortgage payments are due.

3. No Impact on Social Security, Medicare, or Pensions

Funds received from a reverse mortgage are considered loan proceeds, not income, and are therefore tax-free. This means they do not affect Social Security benefits, Medicare eligibility, or pension income. You also won’t need to report them as income on your tax returns.

4. You Keep Ownership of Your Home

Taking out a reverse mortgage does not mean giving up your home. The title stays in your name, and ownership remains entirely with you. Accessing the equity in your home doesn’t change who owns it—it simply allows you to use your home’s value to support your financial goals.

5. Flexible Options for Accessing Funds

Reverse mortgage funds can be accessed in several ways: as monthly payments, a line of credit, a lump sum, or as part of a home purchase. You can use the funds however you wish—whether it’s for travel, home upgrades, medical expenses, or just everyday living.

Through the Reverse Mortgage for Purchase program, you can even buy a new home and close both the home purchase and the reverse mortgage loan at the same time. This option is especially appealing for those wanting to downsize, relocate closer to family, or finally move into their dream retirement home.

Reverse mortgages are available to adults 62 and older throughout Colorado. If you’re considering this option, reach out to a trusted reverse mortgage lender to learn more and explore whether it’s the right fit for your needs and lifestyle.

Jan Jordan and Kelsey Jorck are Reverse Mortgage Specialists serving Fort Collins, Loveland, Greeley, Longmont, Dacono, Erie, Boulder, and surrounding areas across Colorado’s Front Range.  Click here to contact them and learn if reverse mortgage is right for you.