Help your parents decide Understand the terms of a reverse mortgage If you or your parents are thinking about getting a reverse mortgage, you'll need to be very careful about reading all of the terms, especially those in the fine print. The loans sound good, but are complex. Homeowners 62 and older may want to boost their monthly income by borrowing against their dwellings. Repayment is usually deferred until they die, move out of the home or sell. Some seniors don't realize that they will still have to pay property taxes, homeowners insurance and repairs. If they don't keep taxes and insurance up to date, they could lose their homes to foreclosure. Taking a reverse mortgage at 62 is risky because there is an increased likelihood that younger borrowers will outlive their loan funds, which is much less likely for older borrowers. If your parents are considering a reverse mortgage, you may need to help them read the fine print in advertising pieces before they sign up. According to the Consumer Financial Protection Bureau (CFPB), most older consumers in their focus groups couldn't read the fine print in printed ads or on TV. A study by USA Today shows that reverse mortgages have not saved seniors from defaulting on their property taxes and homeowners insurance. There are risks to reverse mortgages that seniors must understand.