If you are 62 or older and looking to turn your home’s value into extra cash without giving up your house, a reverse mortgage might be the solution. It’s a flexible way to boost income or access funds while staying right where you belong, at home. Compare reverse mortgage lenders today.
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Our Ratings
Our analysis of reverse mortgage companies reviewed 102 data points from 6 companies, with 17 data points collected from each.
- Multiple disbursement options to fit your financial needs
- Personalized 24/7 customer service with strong borrower support
- Reverse mortgage loan options available for high-value properties
Reviews 904
Reverse Mortgage Lender Review
Our take: Mutual of Omaha has been a trusted name in financial services for over 100 years, and its reverse mortgage products reflect that reliability. As America’s #1 HECM Lender, Mutual of Omaha offers flexible disbursement options and personalized service.
Pros
- Free reverse mortgage guide
- Multiple disbursement options
- Personalized 24/7 customer service
- Reverse mortgage options available for high-value properties
Cons
- Full repayment required when the loan ends
- Must speak with loan officer before you can apply
- May have high upfront and ongoing costs
Reverse mortgage FAQs
Should I get a reverse mortgage?
It could make sense if you need additional retirement income, own your home (or have nearly paid it off), and don’t plan to leave it to your heirs. Otherwise, consider alternatives like a HELOC or home equity loan. Get your free reverse mortgage guide to understand which option makes the most sense for your situation.
How can I avoid reverse mortgage scams?
Be wary of offers that seem too good to be true and high-pressure sales tactics. Always verify a lender’s legitimacy, avoid unsolicited offers, and consult with a trusted, HUD-approved counseling agency. To help you do this, reputable lenders like Mutual of Omaha are required to provide you with a list of independent, approved counseling agencies near you.
What happens if I need to leave my home?
You can generally be away from your home for up to 12 consecutive months for medical reasons before it affects your reverse mortgage. Inform your loan servicer and provide documentation. Learn more about residency rules and how to protect your loan in the free reverse mortgage guide.
Can I add a spouse or family member?
Since reverse mortgage terms are locked in at closing, you generally cannot add a spouse or family member to the loan later without refinancing. To learn how to structure your loan correctly from the start, get your free reverse mortgage guide today.
How does a reverse mortgage affect my eligibility for government assistance programs?
A reverse mortgage can affect eligibility for need-based government assistance programs such as Medicaid and Supplemental Security Income (SSI). Loan proceeds received as lump-sum or monthly payments could be counted as assets if not spent within the month they are received, which might disqualify you from receiving benefits. Get your free guide and consult with an attorney or financial advisor as you move forward.
What is a good reverse mortgage interest rate?
A good reverse mortgage interest rate depends on the type of loan and when you get it, as rates can fluctuate over time. Some lenders may be able to provide lower rates than the industry average, especially if you have a high-value property or you own your home outright. Use these tips to get the best possible rate on your reverse mortgage:
- Get prequalified: Many lenders can prequalify you for a reverse mortgage so you can determine what rates and loan amounts you might qualify for before you apply.
- Pay attention to APRs: The annual percentage rate shows you the true cost of borrowing including interest and lender fees. A lower APR indicates a better overall deal, so don’t just look at interest rates alone. Pay attention to origination and other one-time fees. These can be massive with HECMs.
What influences your reverse mortgage rate?
- Age:
- One of the most significant factors in determining your loan rate is your age. The older you are, the higher your rate is likely to be. That’s because lenders expect the loan to be paid back sooner if you’re older.
- Your age also affects how big of a loan you can take out. Older homeowners can access more of their home’s equity than younger homeowners because they have a shorter life expectancy.
- Location: Like traditional mortgages, reverse mortgage rates can vary by geographic region based on local housing market conditions.
- Credit history: Unlike traditional mortgages, your credit score and history don’t affect the interest rate you’ll get on a reverse mortgage. Lenders still want a decent credit history and no outstanding tax issues or judgments against you.
- Lender: As with any loan, the lender you choose affects the rate you receive. That’s why it’s best to shop around and talk to at least three reverse mortgage lenders to see which has the lowest rates and fees. This part might take some time, but it can save you thousands in interest.
America’s #1 HECM Lender
- Multiple disbursement options to fit your financial needs
- Personalized 24/7 customer service with strong borrower support
- Reverse mortgage loan options available for high-value properties
Reviews 904
About reverse mortgages
A reverse mortgage is a unique financial tool that allows seniors to convert their home equity into cash without monthly payments. Designed for those aged 62 and older, reverse mortgages can provide extra income or financial flexibility in retirement. Here is more information about the requirements:
- Be 62 years of age or older
- Own your home or have substantial equity
- Use the home as a primary residence
- Able to pay property taxes, insurance, HOA fees, and maintenance
- Home must also be in good condition and meet lender standards
How does a reverse mortgage work?
A reverse mortgage allows qualifying homeowners to tap into their home’s equity without the burden of mandatory monthly payments, which sets it apart from traditional home equity loans that require steady, scheduled repayments.
In the United States, the most widely used option is the Home Equity Conversion Mortgage (HECM). Backed by the Federal Housing Administration (FHA), HECMs offer federally insured protection and feature a maximum lending limit of $1,249,125 for 2026.
When taking out an HECM, borrowers can typically choose between fixed- and adjustable-rate options. Fixed rates remain constant over the life of the loan, while adjustable rates fluctuate according to financial market benchmarks, such as the Constant Maturity Treasury (CMT) index.
Determining whether a fixed or adjustable rate is best depends on a few factors. The most notable factor being: What are the current interest rates, and what are the expectations for interest rates over the life of your loan? In a low-rate environment, adjustable rates tend to start lower, so they could benefit you if interest rates fall, but you run the risk of rates rising higher than they started over the life of the loan if interest rates rise.
Kyle Ryan, CFP®
Therefore, if you plan to be in your home for less than 10 years, I typically go with an adjustable rate (depending on the rate environment and other personalized factors). The benefit of a fixed rate is that the borrower always knows how much interest is being accrued and could refinance later if interest rates drop.
How do reverse mortgages typically work?
- You connect with a lender to discuss your options. It’s important to do your research and choose a top-rated lender with a strong reputation. For example, Mutual of Omaha has been serving customers for more than a century and is the #1 HECM lender in the U.S.
- You complete credit counseling to understand the terms and risks.
- You apply and complete a home appraisal.
- Once approved, you’ll sign the closing paperwork.
- The amount of equity you can borrow depends on your age, the home’s value, and current interest rates.
Pros and cons of reverse mortgages
A reverse mortgage can be a valuable financial tool for retirees looking to supplement their income, but it also comes with risks. Understanding the benefits and drawbacks can help you determine whether it’s the right choice for your situation. Consider the pros and cons below before moving forward.
Pros: What we like
- You can stay in your home
- You can access additional cash
- No additional monthly payment1
- Loan proceeds aren’t taxed as income2
- You (or your heirs) won’t owe more than the home is worth
Cons: Things to keep in mind
- Fees (origination fees, closing costs and mortgage insurance premiums)
- Loan balance grows over time
- Interest isn’t tax-deductible until you repay the loan
- You will be responsible for ongoing home maintenance
How to apply for a reverse mortgage
- Submit your contact information: You can submit your information online in less than a minute.
- Complete required reverse mortgage counseling: Reverse mortgage counseling is required by law and must be completed before you apply. Counseling covers the features, drawbacks, and alternatives.
- Apply: Your lender will help you with the required documentation, which may include identification, a copy of your homeowner’s insurance bill, and property taxes.
- Get an appraisal: A home appraisal is typically needed to confirm your property’s market value.
- Go through processing and underwriting: Underwriting is a manual process with a reverse mortgage and may take longer than with a traditional mortgage.
- Close on the loan and receive your funds: If approved, you’ll sign for your loan and get the funds.
America’s #1 HECM Lender
- Multiple disbursement options to fit your financial needs
- Personalized 24/7 customer service with strong borrower support
- Reverse mortgage loan options available for high-value properties
Reviews 904
About our contributors
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Written by Cassidy Horton, MBACassidy Horton is a finance writer passionate about helping people find financial freedom. With an MBA and a bachelor's in public relations, her work has been published more than 1,000 times online.
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Edited by Amanda HankelAmanda Hankel is a managing editor at LendEDU. She has more than seven years of experience covering various finance-related topics and has worked for more than 15 years overall in writing, editing, and publishing.
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Reviewed by Kyle Ryan, CFP®Kyle Ryan, CFP®, ChFC®, is a co-owner and financial planner at Menninger & Associates Financial Planning. He provides his clients with financial products and services, always with his clients' individual needs foremost in his mind.