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What is a Reverse Mortgage

reverse-mortgage-elderlycouple-frontdoorA reverse mortgage is a loan that allows for homeowners to convert home equity into immediate cash, periodic payments and/or a line of credit that may grow over time. It can also be used to purchase a home.

A reverse mortgage loan provides many seniors the opportunity to live comfortably in their home because mortgage payments are not required.

If you are a homeowner and you are over 62, you may be able to qualify for a reverse mortgage loan. It is a great option for seniors that want to be free from a mortgage payment so that they do not have to rely on their retirement fund, retirement benefits or family and friends.

When a homeowner obtains a reverse mortgage loan through Reverse Mortgages of Southern California, we will oversee the process. Whether the homeowner receives a lump sum, periodic payments or a line of credit their mortgage payment will be eliminated! They will however still be responsible for taxes and homeowner’s insurance.

The reverse mortgage must be paid off within about 6 months following death, upon sale or if the homeowner moves out of the residence.

If the homeowner does pass away, their heirs may be able to refinance the home and keep it or sell it and receive any remaining equity just as if the residence had a forward mortgage on it. In addition, the government does not take the house as many believe.

Benefits of a Reverse Mortgage Loan:

  • Reverse mortgage loan proceeds are tax-free.
  • You can keep your independence.
  • Reverse mortgages do not affect medicare or social security benefits.
  • You can choose how you wish to receive your payments.
  • It will allow you to enjoy your retirement!


Our experts at Reverse Mortgages of Southern California are ready to answer any questions that you may have about the benefits of a reverse mortgage loan. We can explain everything you need to understand about the reverse mortgage loan process.