A reverse mortgage can be a smart fix for seniors who need to borrow, but there are risks if you can't cover what's owed. Getty Images

Reverse mortgages , which allow homeowners aged 62 and older to convert part of their home equity into cash without having to make monthly mortgage payments, have become increasingly popular among seniors looking to borrow money during retirement. About 23,900 reverse mortgage loans have already been originated for fiscal year 2025 (which began on October 1, 2024, and ends September 30, 2025), according to the National Reverse Mortgage Lenders Association . That represents billions in loan volume and a significant amount of debt for the seniors utilizing this tool.

But while reverse mortgages allow seniors to borrow without adding to their m

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