Department Info

What is A Reverse Mortgage?

Office For The Aging
Todd N. Tancredi, Director





A Reverse Mortgage enables you to tap the equity in your home and receive either a lump sum payment or monthly payments to supplement your other income sources.



A Reverse Mortgage (RM) allows you to convert some or all of your home equity into cash while retaining ownership of your home and benefiting from the future growth in the value of your property. You can decide how much equity you want to use now and how much you want to reserve for future use or for your estate. RM advances can be used for any purpose you choose. RM loan advances are nontaxable and do not affect your Social Security or Medicare benefits. If you receive Supplemental Security Income (SSI), RM advances do not affect your benefits as long as you spend them within the month they are received.

Am I Eligible?

You must be at least 62 years old and either own your home free and clear or have a very low outstanding mortgage balance.


RMs use up some or all of your home equity, leaving less for you and your heirs in the future. The interest rates, application fees, points and other costs are generally higher than conventional mortgages. The interest is not deductible on your income taxes until you pay it, which does not happen until you pay off your total RM debt. There are different types of RMs and risks are different for each type.

Unlike a Home Equity loan, you do not have to repay the loan unless you permanently move out of your home, or you sell it. Your legal obligation to pay back the loan is limited by the value of your home. You can prepay the loan at any time without penalty.

For More Information

Before you can receive a Reverse Mortgage, you must obtain a Certificate of Counseling. More information is available by clicking on this link from the Consumer Financial Protection Bureau.


Go to top of page


Todd N. Tancredi,Director Todd N. Tancredi
Dutchess County Seal