Learn how reverse mortgages let homeowners 62 and older access equity without monthly payments. Explore market growth, buyer and seller impacts, and key risks based on current data.
Holden Kellerhals, Lending Strategist
NEXA Lending
Phone: (727) 591-5591
Email: [email protected]
NMLS# 2646551
Company NMLS# 1660690
Licensed in: FL, IA
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Reverse Mortgages: Converting Home Equity for Seniors Over 62
May 23, 2026
Reverse mortgages give homeowners aged 62 and older a way to turn home equity into cash. Borrowers keep title and stay in the home, with repayment due only after death, sale, or permanent move. The loans are non-recourse, so neither borrowers nor heirs owe more than the home value at repayment.
The Home Equity Conversion Mortgage, or HECM, dominates the market and made up 81.8 percent of volume in 2023. Borrowers can choose lump sums, monthly advances, lines of credit, or mixes of these options. Interest accrues on the balance and adds to the loan each month. Homeowners must still pay property taxes, insurance, and maintenance or risk foreclosure.
The global reverse mortgage market stood at 1.83 billion dollars in 2023 and is projected to reach 2.71 billion dollars by 2030 at a 5.9 percent CAGR. North America held 35.2 percent of the market that year. A related services segment reached 32.4 billion dollars in 2025 and is expected to hit 61.8 billion dollars by 2034. In 2025, 21.1 percent of seniors seeking these loans reported monthly budget deficits, up from 12.2 percent the year before.
The HECM for Purchase program lets qualified buyers aged 62 and older use loan proceeds to buy a new primary residence. Sellers face no barriers when marketing the home, and any equity above the loan balance stays with them. Heirs who want to keep the property must repay the balance through refinancing or cash. Real estate markets see modest effects from longer occupancy by seniors and targeted activity in the South and West.
Reverse mortgages continue to grow with an aging population and rising home equity. Borrowers should weigh costs, ongoing obligations, and alternatives to avoid equity loss or foreclosure.