As more people learn about the versatility of reverse mortgages, this financial planning tool has gained significant popularity. Today, record numbers of consumers are using reverse mortgages to remain in their homes to supplement their retirement income, pay for health care expenses, make home modifications, or simply establish a cash reserve for emergencies.

Despite increased popularity, even some of the most basic facts about reverse mortgages are often misunderstood. According to Peter Bell, President of the National Reverse Mortgage Lenders Association, a relatively short industry history and rapid product evolution have deluged consumers with information that at times is confusing or inaccurate.

The most common misconception we hear is, ‘A reverse mortgage is where the bank gives you some money and then takes your house,’ says Bell. That couldn’t be further from the truth. Our mission, Bell explains, is to inform seniors about the benefits of reverse mortgages so they can make informed decisions about whether this product makes sense for their own particular situation.

This guide provides answers to the most common questions asked by consumers. The questions are broken into three categories: those appropriate to ask before getting a reverse mortgage; those applicable after getting a reverse mortgage; and those applicable when a reverse mortgage needs to be repaid.