Reverse Mortgage Loans: Access Your Home Equity

A reverse mortgage can give eligible homeowners an opportunity to access a portion of their home’s equity while continuing to live in the property. For homeowners who are planning for retirement, managing an existing mortgage, or looking for additional financial flexibility, a reverse mortgage may provide another way to use the equity they have built over time.
Crestico helps homeowners understand their reverse mortgage options and determine whether this type of financing may fit their financial goals.

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What Is a Reverse Mortgage?

Retired homeowners discussing reverse mortgage options with a mortgage advisor to access home equity during retirement

A reverse mortgage is a type of home loan designed for eligible older homeowners who want to access some of the equity in their primary residence.
Unlike a traditional mortgage where the homeowner makes monthly payments toward the loan balance, a reverse mortgage can allow eligible borrowers to receive funds from their available home equity. The loan balance generally increases over time as funds are received and interest and other applicable charges are added.
es and insurance, and living in the home as required by the loan terms.
A reverse mortgage is not free money. It is a loan secured by the home, which makes it important to understand the costs, responsibilities, and long term implications before moving forward.

Get a Free Reverse Mortgage Consultation

Considering a reverse mortgage but not sure where to start?
Speak with a Crestico mortgage professional about your home, current mortgage, financial goals, and potential reverse mortgage options. You can ask questions, understand the process, and learn what may be available based on your individual circumstances.
There is no need to make a decision before you understand your options.

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Step 1

Check Eligibility

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Step 2

Select a Payment Option

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Step 3

Loan Approval

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Step 4

Close the Loan

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Step 5

Repayment & Loan Terms

How Does a Reverse Mortgage Work?

The amount a homeowner may be able to access depends on several factors, including age, home value, existing mortgage obligations, property type, and the specific reverse mortgage program.

Once eligibility and loan terms are determined, available proceeds may be structured according to the applicable loan program and the homeowner’s financial needs.

For homeowners with an existing mortgage, reverse mortgage proceeds may potentially be used to satisfy the existing mortgage obligation, subject to program requirements and available equity.

The homeowner continues to own the property. However, the borrower must continue meeting the responsibilities associated with the home and the reverse mortgage throughout the life of the loan.

Benefits of a Reverse Mortgage

For eligible homeowners, a reverse mortgage can provide greater flexibility in how home equity is used.

Access Home Equity

A reverse mortgage may allow you to access a portion of the equity you have accumulated in your home without selling the property.

Create Greater Financial Flexibility

Available proceeds may provide additional financial flexibility for eligible homeowners who want to manage expenses or supplement other financial resources.

Address an Existing Mortgage

Depending on the circumstances and loan program, reverse mortgage proceeds may be used to pay off an existing mortgage balance, potentially changing the homeowner’s monthly mortgage obligation.

Remain in Your Home

A reverse mortgage can allow eligible homeowners to continue living in their home while accessing available equity, provided they continue meeting the loan and property requirements.

Who May Qualify for a Reverse Mortgage?

Reverse mortgage eligibility depends on the specific loan program and the homeowner’s circumstances.

Factors that may be considered include the homeowner’s age, property ownership, home equity, property type, existing mortgage balance, and ability to meet ongoing property related obligations.

A reverse mortgage may be worth exploring if you are an older homeowner who has built substantial equity in your home and wants to understand whether that equity can support your financial goals.

A consultation can help you understand the requirements that may apply to your situation.

Reverse Mortgage Costs and Loan Considerations

A reverse mortgage comes with costs and responsibilities that should be understood before accepting the loan.
Depending on the loan program, costs may include interest, mortgage insurance, lender charges, closing costs, servicing related charges, and other applicable expenses.
Because interest and applicable charges can increase the loan balance over time, the amount of equity remaining in the property may change.
Homeowners should also understand their ongoing responsibilities. These can include maintaining the property, keeping required insurance in place, paying property taxes, and meeting the occupancy requirements of the loan.
Understanding these factors upfront can help you determine whether a reverse mortgage is appropriate for your financial goals.

Reverse Mortgage Options for California Homeowners

Crestico helps homeowners in Los Angeles and throughout Southern California explore mortgage financing options, including reverse mortgage solutions for eligible homeowners.
California homeowners who have built significant equity in their property may want to explore whether a reverse mortgage could provide financial flexibility while allowing them to remain in their home.
Whether you are in Los Angeles or another Southern California community, Crestico can help you understand the available options and determine what information is needed to evaluate your situation.

How Can You Use Reverse Mortgage Funds?

The way reverse mortgage proceeds are used depends on the homeowner’s financial situation and the terms of the loan.

Eligible homeowners may consider using available funds for retirement expenses, home improvements, healthcare related expenses, paying off an existing mortgage, or other financial needs.

Because every situation is different, it is important to consider how accessing home equity may affect your overall financial position and long term plans.

What Happens to Your Home With a Reverse Mortgage?

You generally continue to own your home with a reverse mortgage. The loan is secured by the property, and the balance becomes due according to the terms of the loan.

The loan may become due when a borrower no longer meets the occupancy or other requirements of the program, sells the home, or upon other circumstances specified by the loan agreement.

Because a reverse mortgage can affect the amount of equity available in the home, homeowners should consider their long term plans and discuss the loan with qualified professionals before making a decision.

Frequently Asked Questions

What is a reverse mortgage?

A reverse mortgage is a loan that allows eligible older homeowners to access a portion of their home equity while continuing to live in their home, subject to the requirements of the loan program.

How much money can I get from a reverse mortgage?

The amount available depends on factors such as the homeowner's age, home value, existing mortgage obligations, property type, and the specific reverse mortgage program.

Do I still own my home with a reverse mortgage?

Yes. The homeowner generally retains ownership of the property. However, the home secures the loan and the borrower must continue meeting the applicable loan and property requirements.

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

A reverse mortgage is structured differently from a traditional mortgage, but homeowners remain responsible for required property expenses and must comply with the terms of the loan. Your specific obligations depend on the loan program.

Is a reverse mortgage right for me?

A reverse mortgage may be appropriate for some eligible homeowners but not for everyone. Your home equity, financial goals, existing mortgage, property, and long term plans should all be considered before making a decision. A consultation can help you understand your potential options.

What fees are associated with reverse mortgages?

Fees may include loan origination costs, property appraisal, insurance for certain programs, and counseling services. In many cases these costs are included in the loan balance rather than paid upfront.

Turn Your Home Equity into Lasting Financial Freedom

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