Question 1

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

Accepted Answer

No. You make no monthly mortgage payments. You still owe property taxes, homeowners insurance, and HOA fees if applicable. The loan balance grows over time if you don't make payments. When you move or pass, the home is sold to repay the lender.

Question 2

How much can I borrow on a reverse mortgage in San Jose?

Accepted Answer

It depends on your age, home value, and current rates. Borrowers 62-65 typically access 50-60% of equity. At 75+, you access 60-70%. Your home's appraised value is the ceiling. A $1.2 million home might yield $600,000-$840,000 depending on your age.

Question 3

What credit score do I need for a reverse mortgage?

Accepted Answer

There's no minimum credit score. Lenders focus on your ability to pay property taxes and insurance, not traditional debt ratios. A history of paying those bills on time matters more than a credit score.

Question 4

Can I leave my home to my heirs if I have a reverse mortgage?

Accepted Answer

Yes, but the loan must be repaid first. Your heirs can sell the home and use the proceeds to pay off the reverse mortgage, or they can refinance with a traditional mortgage. If the home sells for more than the loan balance, heirs keep the difference.

Question 5

What happens if I move or want to sell my home?

Accepted Answer

The reverse mortgage becomes due and payable. You (or your heirs) sell the home, pay off the loan from the sale proceeds, and keep any remaining equity. There's no prepayment penalty.

Reverse Mortgages in San Jose: Turn Home Equity Into Cash