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Myth #1: To qualify, you must own your home free and clear.
Reality: You do not need your home fully paid off to get a reverse mortgage. In fact, many people use a reverse mortgage to pay off an existing mortgage or Home Equity Line of Credit (HELOC), which can eliminate monthly mortgage payments altogether. As long as you have enough equity (typically at least 50%), you may qualify—even if you still owe a balance on your current loan.
Myth #2: My heirs will be stuck with debt after I’m gone.
Reality: Reverse mortgages are non-recourse loans, meaning neither you nor your heirs will ever owe more than the home is worth at the time of sale. When the loan comes due—usually when the last borrower passes away or moves out—the home can be sold, and the proceeds pay off the loan. If the home is worth less than the loan balance, the lender absorbs the loss, not your heirs. And if it’s worth more, your heirs keep the difference.
Myth #3: I can’t sell my home if I have a reverse mortgage.
Reality: You remain the owner of your home and can sell it anytime. If you decide to move, downsize, or relocate, you can simply sell the home, pay off the reverse mortgage balance (just like a traditional mortgage), and keep the remaining equity. A reverse mortgage gives you freedom, not restrictions.
Myth #4: The bank takes ownership of my home.
Reality: This one comes up often, and it’s completely false. With a reverse mortgage, you retain full ownership of your home, just like with any other mortgage. Again, the lender places a lien against the property, just like with a regular mortgage. You’re responsible for property taxes, homeowner’s insurance, and upkeep, and the home remains yours to live in, sell, or leave to your heirs.
Myth #5: Reverse mortgages are only for desperate people who have run out of money.
Reality: While a reverse mortgage can be a powerful tool in a financial emergency, today’s reverse mortgage is often used as part of a broader retirement strategy. Savvy homeowners are using them to delay Social Security, preserve investment portfolios, create an emergency fund, or finance home renovations and in-home care. It’s not about financial distress—it’s about financial options.
The bottom line
Reverse mortgages aren’t for everyone, but they are certainly worth exploring for many. They can provide peace of mind, financial flexibility, and the ability to age in place without the burden of monthly mortgage payments.
If you or a loved one is 55 or older and curious about whether a reverse mortgage could be a fit, I encourage you to reach out. I specialize in helping Colorado homeowners understand their options and make confident, informed decisions.
There’s no cost or obligation to have a conversation—just an opportunity to learn what’s possible.
Gabe Bodner is a retirement mortgage planner and licensed mortgage originator in multiple states. Gabe utilizes the latest research from the top researchers to assist his clients in living for today and planning for tomorrow. To reach Gabe, call 720.600.4870, e-mail gabe@bodnerteam.com or visit reversemortgagesco.com.
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