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Los Gatos homeowners 62+ are sitting on serious equity. Silicon Valley appreciation has made many homes here worth well over a million dollars.
A reverse mortgage lets you convert that equity into cash. No monthly mortgage payments required — you stay in your home and access what you've built.
62 years old
Minimum Age
None required
Monthly Payments
HECM or Jumbo
Loan Type
Yes — before closing
Counseling Required
Reverse Mortgages in Los Gatos
You must be 62 or older, own your home, and live in it as your primary residence. Any existing mortgage gets paid off first using reverse mortgage proceeds.
HUD requires you to complete a counseling session before closing. It's not a formality — counselors walk you through costs, risks, and alternatives.
Local decision guide
Use this guide to connect reverse mortgages eligibility, lender expectations, and local market factors before comparing payment options in Los Gatos.
Los Gatos homeowners 62+ are sitting on serious equity. Silicon Valley appreciation has made many homes here worth well over a million dollars.
A reverse mortgage lets you convert that equity into cash. No monthly mortgage payments required — you stay in your home and access what you've built.
You must be 62 or older, own your home, and live in it as your primary residence. Any existing mortgage gets paid off first using reverse mortgage proceeds.
Most reverse mortgages are HECMs — Home Equity Conversion Mortgages — backed by FHA. A few private jumbo reverse products exist for higher-value homes.
Los Gatos home values often push past FHA lending limits. Jumbo reverse mortgages can make sense here when a HECM won't capture enough equity.
I see clients who treat a reverse mortgage as a last resort. That's outdated thinking. For asset-rich, cash-flow-tight retirees, it's a legitimate planning tool.
Shopping lenders matters here. Fees, margins, and payout structures vary significantly. One lender's offer can look very different from another's on a high-value home.
A HELOC gives you a credit line too — but requires monthly payments and income verification. A reverse mortgage skips both requirements.
Home equity loans work similarly. They're better if you have strong cash flow and want to preserve more equity long-term. Reverse mortgages favor those who need payment relief now.
Property taxes in Santa Clara County are substantial. Some reverse mortgage borrowers use proceeds specifically to cover ongoing tax bills.
Los Gatos has a strong resale market. Your heirs can sell the home, pay off the reverse mortgage balance, and keep remaining equity — if any remains.
No. You remain on title and keep ownership. The lender places a lien on the property, just like a regular mortgage.
The loan becomes due. Heirs can sell the home or refinance to pay the balance and keep the property.
Yes. Proceeds pay off any existing mortgage first. Remaining funds go to you as cash or a credit line.
Reverse mortgage proceeds are not taxable income. They generally don't affect Social Security or Medicare benefits.
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.
Lenders do a financial assessment to confirm you can cover taxes, insurance, and upkeep. It's less strict than a traditional mortgage.