Reverse Mortgage
When A History Of Home Ownership Pays Off
What Is a Reverse Mortgage
If you are 62 or older and own your home, you are uniquely qualified to benefit from a reverse mortgage. This loan program is designed to help qualifying borrowers get access to their equity, stay in their home, and rid themselves of a monthly mortgage payment.*
A reverse mortgage gives you access to the equity that you have built up in your home over the years through principal payments, your down payment, and appreciation. You can receive this equity TAX FREE to use however you want.
- Retirement Funding
- Vacation or Travel
- Investments
- Home Repairs
- Medical Expenses
With a traditional mortgage, you pay a monthly payment to a lender. With a reverse mortgage, the payment is made to you. How would you like to receive your equity? You can choose from these options—or a combination—when accessing your home’s equity.
- One Lump Sum
- Monthly Payments
- Line of Credit
How a Reverse Mortgage Works
With this loan program, you stop making monthly payments on your mortgage. The amount owed then becomes a lien on the property. Any equity that you choose to have paid to you is added to that lien amount, with any interest accrued.
At the end of the reverse mortgage period, when you no longer occupy the home, the amount owed is either the mortgage balance or the value of the home, whichever is lesser.
We’re here to help
The JJ Mack Team at American Pacific Mortgage specializes in Roseville Mortgages and helping California homebuyers navigate the CalHFA loan process with confidence. With offices in Roseville, Sacramento, and Loomis, we combine local expertise with personal service to guide first-time buyers every step of the way. We’re committed to fast, smooth closings, ensuring your application is complete and stress-free. If you’re considering a CalHFA loan, contact us or fill out the form below to explore how we can help you unlock the door to homeownership in California.
Frequently Asked Questions
Q: What is a reverse mortgage?
A reverse mortgage allows homeowners aged 62 or older to convert part of their home equity into cash. Unlike a traditional mortgage, monthly payments aren’t required, and the loan is repaid when the home is sold, refinanced, or the borrower moves out.
Q: Who qualifies for a reverse mortgage?
To qualify, you must be at least 62, own your home outright or have a low mortgage balance, and live in the home as your primary residence. Lenders and HUD also have additional eligibility requirements.
Q: What are the risks of a reverse mortgage?
Reverse mortgages can reduce the inheritance left to heirs and increase the loan balance over time due to interest and fees. It’s important to understand the terms and plan for future homeownership needs.
Q: Do I still own my home with a reverse mortgage?
Yes. You keep the title to your home and remain the owner. You’re still responsible for property taxes, homeowners insurance, and maintenance, and as long as you meet those obligations and live in the home as your primary residence, you can stay in it. The lender does not own your home.
Q: How can I receive the money from a reverse mortgage?
Depending on the program, you may be able to receive funds as a lump sum, a line of credit, fixed monthly payments, or a combination of these. The right option depends on your financial goals, and a local lender can help you weigh which structure fits your needs.