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Reverse Mortgage Myths vs. Facts

There is a lot of misinformation about reverse mortgages. Most of it is simply wrong. Here are the 10 most common myths Utah homeowners hear — and the real facts behind each one.

10 myths debunked
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Setting the record straight

10 myths Utah homeowners hear most

Myth 1
The lender takes the title to your home.
01
The fact
Title on a reverse mortgage is no different from any other mortgage — you remain on the title. You own your home. When the home is eventually sold or becomes vacant, the loan is repaid from the proceeds, just like a traditional mortgage.
Myth 2
You need good credit to get a reverse mortgage.
02
The fact
Credit and income are reviewed, but the requirements are far less strict than a traditional mortgage. The review is to confirm you are in a safe financial position to continue paying taxes, insurance, and maintaining the home — not to gatekeep you.
Myth 3
Borrowers can owe more than their home is worth.
03
The fact
All HECM reverse mortgages are non-recourse loans. You can never be personally liable for more than your home's value at the time of sale. If the loan balance grows beyond the home's value, FHA insurance covers the difference. You are always protected.
Myth 4
You cannot get a reverse mortgage if you already have a mortgage.
04
The fact
A reverse mortgage can pay off your existing mortgage at closing — eliminating your monthly payment entirely. This is one of the most common reasons Utah homeowners choose a reverse mortgage. You are still responsible for taxes and insurance.
Myth 5
There are limits on how you can spend the money.
05
The fact
It is your home, and it is your money. There are no restrictions on how you use the proceeds from a reverse mortgage. Travel, medical bills, home improvements, helping family — it is entirely your decision.
Myth 6
Your children will be responsible for repaying the loan.
06
The fact
The loan obligation is attached to the home, not your estate. Your heirs are never personally liable. If they want to keep the home and the balance exceeds the value, they only need to pay 95% of the appraised value. If they do not want the home, they simply sell it — and any equity remaining after repayment goes to them.
Myth 7
Only low-income seniors get reverse mortgages.
07
The fact
Utah homeowners from every income level use reverse mortgages — for very different reasons. Some want to eliminate a mortgage payment. Others want a flexible line of credit for unexpected expenses. Financial planners increasingly recommend reverse mortgages as a strategic retirement tool, regardless of income.
Myth 8
Reverse mortgage lenders take advantage of seniors.
08
The fact
Reputable reverse mortgage lenders are members of the National Reverse Mortgage Lenders Association (NRMLA), which enforces a strict code of conduct. Reverse Freedom Mortgage has been serving Utah seniors since 2008 with an education-first approach — we will tell you if a reverse mortgage is not right for your situation.
Myth 9
This is a decision you make on your own.
09
The fact
HUD requires all HECM borrowers to complete a counseling session with an independent, HUD-approved counselor before closing. This session is designed to make sure you fully understand your options — and it is a built-in protection for you, not a formality.
Myth 10
If you outlive your life expectancy, the lender will evict you.
10
The fact
There is no time limit on how long you can stay in your home. You own it. You cannot be evicted as long as you continue to pay property taxes, maintain insurance, and keep the home as your primary residence. The loan only becomes due when you permanently leave.

Never once did the Reverse Freedom team try to persuade or sell us. They were always available to educate us. Now we are basking in the amazing feeling that we will never have to make a mortgage payment again.

Paul & Debbie H. — South Jordan, Utah
Keep learning

More resources

The Basics

How a reverse mortgage works, who qualifies, and what it costs.

FAQs

Answers to the questions Utah homeowners ask us most often.

Calculator

See an estimate of what you may qualify for based on your home and age.

Education Videos

Watch Chad explain reverse mortgages in plain English.
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NMLS #1382816  |  Utah DRE #9441193  |  This material is not from HUD or FHA and has not been approved by HUD or a government agency. A reverse mortgage is a loan that must be repaid. Borrowers must continue to pay property taxes, homeowners insurance, and maintain the property as a primary residence.

Utah's reverse mortgage specialists since 2008. Helping Utah retirees live the retirement they imagined.

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