Recipients must be at least 62 and own their home outright or have a low outstanding mortgage balance. The homeowner receives a loan. But unlike a home equity loan, it does not have to be paid off until the homeowner no longer occupies the house as a principal residence. Financial Freedom Senior Funding Corp. The company is the nation's largest reverse mortgage originator. Critics of reverse mortgages, such as consumer-advocacy group Consumers Union, have said that reverse mortgages are complicated and expensive, including fees that are poorly explained.
Closing costs can be hefty, totaling thousands of dollars.