Legacy Perceptions Continue to Shape Views of Reverse Mortgages

Industry experts say outdated beliefs about reverse mortgages often prevent older homeowners from fully understanding their options.

Published on Feb. 11, 2026

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Reverse mortgages have evolved significantly over the years, but many people, including older homeowners and their heirs, still hold outdated beliefs rooted in myths and misconceptions about these products. Industry insiders say the legacy perceptions, rather than current program rules and consumer protections, often shape how older homeowners evaluate whether home equity solutions can play a role in retirement planning.

Why it matters

As retirees live longer and face higher costs, housing wealth has become a primary financial asset for many. However, outdated assumptions about reverse mortgages may prevent some older homeowners from considering how these products could supplement their retirement income or cover healthcare expenses.

The details

Industry experts, including those at Longbridge Financial, say the following long-standing assumptions remain among the most common: homeowners lose ownership of their home, the lender takes the home when the borrower dies, reverse mortgages are only used as a last resort, children inherit the debt, reverse mortgages lack consumer protections, heirs automatically lose their options if a reverse mortgage borrower dies, reverse mortgages are expensive, they affect Social Security and Medicare eligibility, and borrowers can be forced out of their home for not paying. In reality, these perceptions do not reflect how reverse mortgages function today, with features like homeowner retaining title, non-recourse loans, consumer protections, and the ability for heirs to inherit the home.

  • National Reverse Mortgage Day is celebrated on February 11.

The players

Melissa Macerato

Chief Revenue & Marketing Officer of Longbridge Financial.

Longbridge Financial, LLC

A nationally recognized mortgage lender and servicer focused on helping older homeowners access their home equity through flexible, responsible lending solutions designed to support a more secure retirement.

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What they’re saying

“Many of the concerns retirees express today reflect how reverse mortgages were viewed in the past, not how they function now.”

— Melissa Macerato, Chief Revenue & Marketing Officer, Longbridge Financial (businesswire.com)

What’s next

National Reverse Mortgage Day on February 11 is an opportunity for older homeowners to learn more about how reverse mortgages have evolved and how they could potentially fit into a comprehensive retirement plan.

The takeaway

As retirees face longer lifespans and higher costs, it's important for older homeowners to re-evaluate their perceptions of reverse mortgages based on how these products function today, rather than outdated assumptions. Consulting with financial professionals can help determine if a reverse mortgage could be a useful tool in managing retirement expenses.