Reverse mortgages have been available for decades, but misinformation still keeps many eligible homeowners from exploring them. If you are 62 or older and own your home, here are five myths worth setting straight.

Myth 1: The Bank Takes Your Home

This is the most persistent myth and it is completely false. You keep the title and ownership of your home with a reverse mortgage. You must continue living there, paying property taxes and insurance, and maintaining the property, just like any homeowner.

Myth 2: You Can Owe More Than Your Home Is Worth

HECM reverse mortgages are non-recourse loans, which means you or your heirs will never owe more than the home is worth at the time it is sold. If the loan balance exceeds the home value, FHA insurance covers the difference.

Myth 3: My Children Will Be Stuck With the Debt

Your heirs have options. They can keep the home by paying off the loan balance (or 95% of the appraised value, whichever is less), sell the home and keep any equity above the loan balance, or simply walk away with no personal liability.

Myth 4: Reverse Mortgages Are Only for People Who Are Desperate

Financial planners increasingly recommend reverse mortgages as part of a retirement strategy. Using a HECM line of credit as a standby reserve can help retirees avoid selling investments during market downturns, a strategy known as a “buffer asset.”

Myth 5: The Process Is Too Complicated

The HECM process includes mandatory counseling with a HUD-approved counselor, which is designed to protect you. Beyond that, the application and closing process is similar to a traditional mortgage. An experienced reverse mortgage team can walk you through every step.

A reverse mortgage is not the right fit for everyone, but for homeowners who qualify, it can transform retirement by eliminating monthly mortgage payments and providing access to the equity they have spent years building.