You continue to live in your home and retain title to it.

You can pay off any existing mortgage on your home, freeing you from that monthly expense.

No monthly mortgage payments are required for as long as you live in the home and continue to meet your obligations to pay your property taxes, home owner insurance and home maintenance.

Closing costs and ongoing fees (such as the FHA Mortgage Insurance Premium) can be financed with the reverse mortgage loan so you pay nothing up front or during the life of the loan.

Loan proceeds are not taxable.

Social Security and Medicare are not affected.

As the borrower, neither you nor your estate will ever owe more than what your home is worth—even if your home decreases in value when it comes time to repay your loan.

If your home increases in value in the future, you may consider refinancing your reverse mortgage to access even more cash.

Any remaining equity after the reverse mortgage is paid off belongs to you or your heirs.

The loan balance increases over time as interest on the loan and fees accumulate.

As home equity is used, fewer assets are available to leave to your heirs. You can still leave the home to your heirs, but they will have to repay the loan balance. Usually, the loan is paid off by selling the home. However, this can be done using other funds or through a traditional mortgage.

Typically, fees are higher than with a traditional mortgage.

Due to the associated fees, a reverse mortgage is not a good option if you plan to move soon.

Eligibility for needs-based government programs, such as Medicaid, may be affected. Consult a benefits specialist.

The loan becomes due when a maturity event occurs, such as the borrower passes away, the home is no longer the borrower’s principle residence, or the borrower vacates the property for more than 12 months due to mental of physical illness.