Question 1

Can I get a reverse mortgage if I still owe money on my Arroyo Grande home?

Accepted Answer

Yes, but you must use reverse mortgage proceeds to pay off the existing mortgage first. You need sufficient equity to cover that balance plus have funds remaining for your use.

Question 2

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

Accepted Answer

The loan becomes due if you leave the home for more than 12 consecutive months. You or your heirs can sell the property or refinance to repay the balance.

Question 3

How much can I borrow with a reverse mortgage in Arroyo Grande?

Accepted Answer

The amount depends on your age, home value, and current rates. Rates vary by borrower profile and market conditions. Older borrowers typically access a higher percentage of their equity.

Question 4

Do reverse mortgages have higher fees than regular mortgages?

Accepted Answer

HECM reverse mortgages include FHA mortgage insurance and origination fees that can be higher than conventional loans. However, these costs can be financed into the loan amount.

Question 5

Will my spouse be protected if something happens to me?

Accepted Answer

Non-borrowing spouses under 62 can remain in the home after your death if proper protections are established at closing. Both spouses over 62 should be on the loan for maximum protection.

Reverse Mortgages in Arroyo Grande: Turn Your Home Equity Into Retirement Income