One of the most common misconceptions about reverse mortgages is that the bank takes ownership of your home. Let’s clear that up right now: you remain the homeowner—just like with any other mortgage.

1. You Hold the Title — Not the Bank

If you’re eligible and choose to take out a reverse mortgage:

• You remain on the title
• You own the home
• The bank does not take ownership at any point

Just like a traditional mortgage, you’re simply borrowing against the equity in your home.

2. What Happens If You Sell Your Home?

Let’s say you take out a reverse mortgage, and 5 years later, you decide to move. What happens?

• You sell the home
• You pay off the reverse mortgage balance using proceeds from the sale
• You keep any remaining equity

It’s straightforward—no harm, no foul, and you’re free to move on with your life.

3. No Prepayment Penalty, No Recourse

One of the lesser-known benefits of reverse mortgages:

• No prepayment penalty – you can pay off the loan early without extra fees
• No recourse loan – if the home sells for less than what’s owed, you or your heirs are not liable beyond the home’s value

These protections make reverse mortgages a safe and flexible option for many seniors.

Final Thoughts

A reverse mortgage doesn’t take your home away—it gives you options. You remain the legal homeowner, you control your property, and you have the freedom to sell or move at any time. It’s your home, your title, your decision.