Question 1

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

Accepted Answer

No. You remain on title and keep ownership. The lender places a lien on the property, 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 or refinance to pay the balance and keep the property.

Question 3

Can a reverse mortgage pay off my existing mortgage?

Accepted Answer

Yes. Proceeds pay off any existing mortgage first. Remaining funds go to you as cash or a credit line.

Question 4

Is my Social Security or Medicare affected?

Accepted Answer

Reverse mortgage proceeds are not taxable income. They generally don't affect Social Security or Medicare benefits.

Question 5

How much can I borrow against my Los Gatos home?

Accepted Answer

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

Question 6

Are there income or credit requirements?

Accepted Answer

Lenders do a financial assessment to confirm you can cover taxes, insurance, and upkeep. It's less strict than a traditional mortgage.

Reverse Mortgages in Los Gatos: Turn Equity Into Income