Question 1

Do I have to make monthly payments on a reverse mortgage?

Accepted Answer

No. You are not required to make monthly payments. The loan is repaid when you sell, move out, or pass away.

Question 2

Can I get a reverse mortgage if my home is worth over $2 million?

Accepted Answer

Yes. A proprietary jumbo reverse mortgage can go above the HECM federal cap. Many Monte Sereno homes qualify for these programs.

Question 3

What happens to the home when I pass away?

Accepted Answer

Your heirs can repay the loan and keep the home, or sell it to settle the balance. Any remaining equity goes to them.

Question 4

Is HUD counseling really required?

Accepted Answer

Yes — it's mandatory for HECM loans. It typically takes about an hour and can be done by phone. Most proprietary lenders require it too.

Question 5

How much equity can I access with a reverse mortgage?

Accepted Answer

It depends on your age, home value, and current rates. Older borrowers generally qualify for a higher percentage of their equity. Rates vary by borrower profile and market conditions.

Question 6

Can I still leave my home to my children?

Accepted Answer

Yes. If the home value exceeds the loan balance at the time of repayment, your heirs keep the difference.

Reverse Mortgages in Monte Sereno, CA