Question 1

Does the bank own my home with a reverse mortgage?

Accepted Answer

No. You keep title to your home. The lender places a lien, just like a regular mortgage.

Question 2

What happens when I move out or pass away?

Accepted Answer

The loan becomes due. Heirs can sell the home, repay the balance, or refinance to keep it.

Question 3

Can my non-borrowing spouse stay in the home?

Accepted Answer

Yes, if structured correctly before closing. This must be set up at origination — not after.

Question 4

Do I need to make monthly payments?

Accepted Answer

No monthly principal or interest payments are required. You still pay taxes, insurance, and HOA dues.

Question 5

Is the cash I receive taxable income?

Accepted Answer

Generally no. Reverse mortgage proceeds are loan advances, not income. Consult your tax advisor.

Question 6

How much can I borrow from my Mission Viejo home?

Accepted Answer

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

Reverse Mortgages in Mission Viejo for Homeowners 62+