A reverse mortgage is a nonrecourse loan, meaning it does not allow the lender to pursue anything other than the collateral. Even if the housing market plummets or your loan balance grows unexpectedly, you’re protected. If the loan ever surpasses your property’s worth, the extra amount is forgiven.

Yes, you can leave your home to your heirs with a reverse mortgage. However, keep in mind that they will be responsible for settling any remaining debt, either by paying it off, selling the home, or turning it over to the bank.

No — typically the money that you receive from a reverse mortgage is not taxable. Nor, will it impact your Social Security or Medicare benefits.

If you have enough cash on hand to pay off the loan, you can go ahead and do so. If you don’t have the cash, you can also turn to a different form of financing to pay off the reverse mortgage balance. This could include a cash-out refinance, home equity loan or home equity line of credit (HELOC), or even a personal loan.

Yes, in most cases you can use the funding you receive from your reverse mortgage as you see fit, including a second home.

A reverse mortgage offers a powerful financial tool for senior homeowners, offering a way to access your home equity without selling. It can help supplement retirement income, pay for medical bills, or fund home improvements. However, it’s important to understand that it’s not a one-size-fits-all solution. With various payment options, types of reverse mortgages, and associated costs, consider your long-term financial goals before committing.

Before moving forward, take the time to explore all options, understand the fine print, and consult with a trusted lender. Use the comparison tools to find a lender that meets your needs and budget. That way, you can make an informed decision that aligns with your financial future.