Everything You Need to Know About Reverse Mortgages by Martha C. White For seniors wondering how to fund retirement, tapping the wealth you’ve built in your home can seem appealing. But reverse mortgages are complicated and can have big downsides you need to aware of before you commit. Reverse mortgages allow you to spend down your home’s equity even while you continue to live in it, then pay the money back when you move out, often from the proceeds of a home sale.