Question 1

Do I still own my home with a reverse mortgage?

Accepted Answer

Yes. You keep title and ownership. The lender places a lien on the property, just like a regular mortgage.

Question 2

What happens when I pass away or move out?

Accepted Answer

The loan becomes due. Your heirs can sell the home, pay off the balance, or refinance to keep the property.

Question 3

Can I get a reverse mortgage if I still have a regular mortgage?

Accepted Answer

Yes, if you have enough equity. The reverse mortgage pays off your existing loan first. Remaining proceeds go to you.

Question 4

How does a jumbo reverse mortgage differ from a HECM?

Accepted Answer

Jumbo reverse mortgages are privately insured and allow higher loan amounts. They suit Laguna Niguel's higher-value homes well.

Question 5

Is reverse mortgage income taxable?

Accepted Answer

No. Proceeds are loan advances, not income. Consult a tax advisor to confirm how this applies to your situation.

Question 6

What are my payment options for receiving funds?

Accepted Answer

You can take a lump sum, monthly payments, a line of credit, or a combination. Most borrowers benefit from the line of credit option.

Reverse Mortgages in Laguna Niguel: Turn Equity Into Income