Question 1

Do I lose ownership of my home with a reverse mortgage?

Accepted Answer

No. You keep the title. The lender places a lien, but you own the home as long as you live there and meet the loan terms.

Question 2

What happens to my heirs when I pass away?

Accepted Answer

They can sell the home and pay off the loan balance. Any equity left over belongs to them.

Question 3

Can I use a reverse mortgage on a high-value Monterey property?

Accepted Answer

Yes. HECM limits apply, but jumbo reverse products cover higher-value homes beyond those caps.

Question 4

Do I still need to pay property taxes?

Accepted Answer

Yes. Taxes, insurance, and home maintenance are still your responsibility. Falling behind can trigger loan repayment.

Question 5

Is HUD counseling really required?

Accepted Answer

Yes, for HECM loans it's mandatory before closing. It takes about an hour and can be done by phone.

Question 6

How is the loan amount determined?

Accepted Answer

It depends on your age, home value, and current interest rates. Older borrowers with more equity generally qualify for more. Rates vary by borrower profile and market conditions.

Reverse Mortgages in Monterey, CA