What a Reverse Mortgage Is and Is Not

A reverse mortgage is a loan that lets eligible older homeowners convert part of their home equity into cash while continuing to live in the home. The most common version in the United States is the Home Equity Conversion Mortgage, or HECM, which is federally insured and generally available to homeowners age 62 or older who meet program requirements.

This lesson clarifies the basic idea before moving into costs, eligibility, payout choices, and long-term planning in later lessons. A reverse mortgage is not free money, not a government benefit, not a way to avoid homeowner responsibilities, and not automatically right or wrong. It is a secured debt with specific protections, tradeoffs, and repayment triggers.