Question 1

Can the bank take my Orinda home with a reverse mortgage?

Accepted Answer

No, you retain ownership and can stay as long as you maintain the property, pay taxes and insurance, and live there as your primary residence. The loan only becomes due when you permanently leave.

Question 2

What happens to my reverse mortgage if I need to move to assisted living?

Accepted Answer

The loan becomes due if you're away from the home for more than 12 consecutive months. You or your heirs must repay the balance, typically by selling the property.

Question 3

Will my children inherit debt with a reverse mortgage?

Accepted Answer

Your heirs inherit the home, not personal debt. They can repay the loan and keep the property, or sell it to settle the balance. Any remaining equity belongs to them.

Question 4

How much can I borrow with an Orinda reverse mortgage?

Accepted Answer

The amount depends on your age, home value, and current rates. Older borrowers and higher-value homes generally qualify for larger loan amounts. A lender can provide specific estimates.

Question 5

Do I pay taxes on reverse mortgage funds?

Accepted Answer

No, reverse mortgage proceeds are not taxable income because they represent loan advances against your home equity. Consult a tax advisor about your specific situation.

Reverse Mortgages in Orinda: Access Your Home Equity While Aging in Place