Reverse Mortgage Q&A's

Straight Answers to the Questions I Hear Most

What is a reverse mortgage?

A reverse mortgage is a loan for homeowners 55 and older (62 for the federally insured HECM program) that converts a portion of your home equity into cash. Instead of you paying the lender each month, the loan balance grows over time and is repaid when you sell, move out, or pass away.

Do I still own my home?

Yes. You keep the title. The lender places a lien on the property, just like a traditional mortgage, but you remain the owner.

Will I have a monthly mortgage payment?

No monthly mortgage payment is required. You remain responsible for property taxes, homeowners insurance, HOA dues if applicable, and home maintenance.

How much money can I get?

It depends on your age, your home’s value, current interest rates, and any existing mortgage balance. In your free consultation I’ll run your exact numbers so you’re not guessing.

Is the money taxable?

Reverse mortgage proceeds are loan advances, not income, so they are generally not taxable. Always confirm with your tax advisor for your specific situation.

What if I still have a mortgage on my home?

That’s very common. Your existing mortgage is paid off with the reverse mortgage proceeds, which is exactly how many of my clients eliminate their monthly payment.

What happens to my spouse if I pass away first?

If your spouse is a co-borrower, nothing changes; they continue living in the home under the same terms. Eligible non-borrowing spouses also have protections that allow them to remain in the home. We’ll structure your loan to protect both of you.

What will my heirs owe after I'm gone?

Your heirs will never owe more than the home is worth. Federally insured Home Equity Conversion Mortgages (HECMs), along with the proprietary reverse mortgages I offer, are non-recourse loans. That means your heirs can choose to keep the home by paying off the loan balance, often through refinancing, or sell the home and keep any remaining equity.

Can I lose my home?

The loan only becomes due if there’s a change of title (such as selling the home), you move out permanently, or you fail to keep up property taxes, homeowners insurance, and basic maintenance. Stay current on those obligations and you can remain in your home.

What's the difference between a HECM and a jumbo reverse mortgage?

A HECM is the FHA-insured reverse mortgage with a federal lending limit. Jumbo (proprietary) reverse mortgages are designed for higher-value homes and can allow access to more equity, which matters in higher-value markets like California.

What are the costs?

Costs can include origination fees, closing costs, and for HECMs, FHA mortgage insurance. Most costs can be financed into the loan. I’ll give you a complete, line-by-line breakdown before you commit to anything.

Why is HUD counseling required?

It’s a built-in consumer protection. An independent, HUD-approved counselor makes sure you understand the loan before you apply. It typically takes about an hour, and I’ll help you schedule it.

Can I pay the loan back early?

Yes. There is no prepayment penalty. You can make payments of any size at any time, or pay the loan off entirely.

How long does the process take?

Most loans close in 30 to 45 days from application, depending on the appraisal and counseling timeline.

Is a reverse mortgage right for me?

Not always, and I’ll be the first to say so. It depends on your goals, how long you plan to stay in the home, and your overall financial picture. Start with the free consultation and we’ll figure it out together. No pressure, no obligation.

Find Out What Your Home Can Do for You

Your consultation is free, and there is never any obligation. Let’s look at your numbers together.