Homeowners 62 and older held $14.92 trillion in home equity in the first quarter of 2026, a record, according to the National Reverse Mortgage Lenders Association, an industry trade group.
The federally insured version of a reverse mortgage, the Home Equity Conversion Mortgage (HECM), lets eligible homeowners turn part of that equity into cash. Before one can start, the U.S. Department of Housing and Urban Development says you must meet with an HECM counselor.
What the session covers
HUD says counselors discuss eligibility requirements, the financial implications, alternatives to an HECM and how it is repaid, including the conditions under which the mortgage becomes due and payable.
Use the meeting to compare the loan against other ways of accessing the same money, such as selling and downsizing or a home equity line of credit.
To find a counselor, HUD lists a toll-free number, (800) 569-4287.
Costs to bring up
HUD says an HECM carries FHA mortgage insurance, with an initial premium of 2% charged at closing and an annual premium of 0.5% of the outstanding loan balance. The Consumer Financial Protection Bureau says that interest and fees are added to the loan balance each month, so the balance grows.
Numbers specific to your home are easier to discuss than general ones.
If you are 62 or older and own your home, Longbridge Financial, a top-rated reverse mortgage lender, offers a free quote showing exactly what you would qualify for. A licensed specialist then explains the cost, how repayment works, and what it means for your heirs. Straight answers, no obligation. Get the facts in about two minutes.
Duties that last after closing
Borrowers must keep paying property taxes and homeowners insurance, live in the home as a principal residence and keep it in good condition, the CFPB says. The loan is usually repaid by selling the home, by the homeowner or the heirs. Federally insured HECMs are nonrecourse, which means neither the borrower nor the heirs can owe more than the home is worth when it is sold.
Good questions for the counselor:
- What will the 2% upfront premium come to on my home?
- How much could the balance grow if I stay 15 years?
- What happens to the loan if I move into assisted living?
- Who handles taxes and insurance if my health changes?
- What would my heirs need to do, and by when?
The CFPB notes one more protection. You can cancel most reverse mortgages within three business days after closing for any reason, without penalty.
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