Do You Turn in Your Keys to the Lender?

Let’s get one thing straight: a reverse mortgage does NOT mean handing over your house keys to the bank. That’s one of the biggest myths out there — and it’s keeping too many homeowners from using a tool that, when done right, can unlock peace of mind during retirement.

So let’s clear the confusion. Whether you’re just curious or seriously considering a reverse mortgage, here’s the truth — straight, simple, and without the financial jargon.

So... What Exactly Is a Reverse Mortgage?

A reverse mortgage allows homeowners age 62 and older to convert a portion of their home’s equity into cash. But unlike a traditional mortgage where you pay the bank every month, a reverse mortgage flips the script — the lender pays YOU.

You can receive the funds in a lump sum, monthly payouts, or as a line of credit. And the best part? You don’t have to make monthly mortgage payments on it. The loan doesn’t come due until you sell the home, move out permanently, or pass away.

That’s right — you stay the owner. You still live in your home. And no, you’re not turning in your keys.

But What About the Lender? Do They “Own” My Home Now?

Absolutely not.

With a reverse mortgage, you retain the title. Your name stays on the deed. You still call the shots — you can host Thanksgiving, paint the walls whatever color you want, and even put up that gazebo you’ve been dreaming about.

However, like any mortgage, there are terms. You must:

• Keep up with property taxes
• Maintain homeowner’s insurance
• Stay current on home maintenance and repairs

As long as you do that and live in the home, the bank can’t — and won’t — take it.

What Happens When You Move or Pass Away?

This is where the “give up your keys” idea comes from. Here’s what actually happens:

When the last borrower (or non-borrowing spouse) moves out or passes away, the reverse mortgage becomes due. But that doesn’t mean your family loses the house. Your heirs have options:

• They can sell the home, repay the loan, and keep the remaining equity.
• They can refinance into a traditional mortgage and keep the home.
• Or, if the loan balance exceeds the home’s value, they can walk away — the reverse mortgage is non-recourse, meaning the lender can’t go after their other assets.

The choice stays in the family’s hands.

So When Doesn’t It Make Sense?

A reverse mortgage isn’t for everyone. Here are a few red flags:

• If you’re planning to move out soon, it’s probably not worth the cost.
• If you can’t afford taxes, insurance, or upkeep, you could risk default.
• If you have others living with you (like adult children) who aren’t co-borrowers, they may have to leave once the loan is due.

But if your goal is to age in place, stretch your retirement dollars, or access cash without selling your home — a reverse mortgage can be a smart move.

Final Word: Keep Your Keys — and Your Options Open

A reverse mortgage doesn’t mean surrendering your home. It’s not a scam. And it’s not a “last resort” for desperate retirees. It’s a financial tool. Like any tool, it’s powerful in the right hands and risky in the wrong ones.

At Tookes & Associates, we walk you through the process with honesty, clarity, and care — helping you see the full picture, not just the sales pitch.

If you’ve got questions, let’s talk. We’ll help you figure out if it fits your vision for retirement — and how to make your home work for you without giving it away.

Call us today at 786-586-2013 or visit www.kennethtookes.com/contact
Because financial freedom should come with facts — not fear.