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Turn Your Home's Equity Into Retirement Income You Can Use Today

A reverse mortgage lets eligible homeowners 62 and older access the equity they've built, without selling their home or taking on a monthly mortgage payment. Stay in the home you love and put your equity to work.

After years of paying down your mortgage, your home likely represents one of your largest financial assets. But for many retirees, that value sits locked away, doing little to support day-to-day living or long-term goals.


A reverse mortgage offers a way to change that. It allows qualifying senior homeowners to convert a portion of their home equity into accessible funds, while continuing to live in their home. There's no required monthly mortgage payment, and the loan is typically repaid only when you sell the home, move out permanently, or pass away.



At Preferred Mortgage, we help homeowners throughout the Bay Area, East Bay, and across California understand whether a reverse mortgage fits their retirement picture. We believe in clear answers and honest guidance, so you can make a confident, well-informed decision.

What Is a Reverse Mortgage?

After years of paying down your mortgage, your home likely represents one of your largest financial assets. But for many retirees, that value sits locked away, doing little to support day-to-day living or long-term goals.


A reverse mortgage offers a way to change that. It allows qualifying senior homeowners to convert a portion of their home equity into accessible funds, while continuing to live in their home. There's no required monthly mortgage payment, and the loan is typically repaid only when you sell the home, move out permanently, or pass away.



At Preferred Mortgage, we help homeowners throughout the Bay Area, East Bay, and across California understand whether a reverse mortgage fits their retirement picture. We believe in clear answers and honest guidance, so you can make a confident, well-informed decision.

A fixed-rate mortgage offers several advantages for homebuyers who want financial stability and long-term predictability.


01 - Consistent Monthly Payments
Because the interest rate never changes, your principal and interest payment remains the same throughout the loan term. This helps make budgeting simple and predictable.


02 - Protection From Rising Interest Rates
Once your rate is locked in, increases in market interest rates will not affect your loan. Your payment stays exactly the same regardless of economic changes.


03 - Long-Term Financial Planning
Stable mortgage payments allow homeowners to plan for the future with greater confidence, making it easier to manage expenses and savings goals.


04 - Simple and Easy to Understand
Fixed-rate loans are straightforward and transparent. You know exactly what your payment will be and how long it will take to pay off the loan.

How Reverse Mortgages Work

A reverse mortgage may sound complex at first, but the structure is straightforward once you understand the key pieces. Here is what the process typically looks like.


Step 1 - Confirm Eligibility and Complete Counseling:
You confirm that you meet the basic requirements, including age and primary residence status. For a HECM, you'll also complete a session with an independent, HUD-approved counselor who reviews how the loan works and helps you weigh your options.

Step 2 - Determine Your Available Funds:
The amount you can access depends on several factors: your age, your home's appraised value, current interest rates, and the specific program. Generally, the older you are and the more equity you have, the more you may be able to borrow.

Step 3 - Choose How You Receive Funds:

Reverse mortgages offer flexibility in how you access your money. Depending on the program, you may be able to receive funds as a lump sum, fixed monthly payments, a line of credit you draw from as needed, or a combination of these.

Step 4 - Continue Living in Your Home:

You remain in your home with no required monthly mortgage payment. You stay responsible for property taxes, homeowners insurance, any applicable HOA dues, and ongoing home maintenance.

Step 5 - Repay the Loan When the Time Comes:

The loan becomes due when the last borrower sells the home, moves out permanently, or passes away. At that point, the loan is repaid, usually through the sale of the home, and any remaining equity goes to you or your heirs.


Here is how the key elements of a reverse mortgage are typically structured:


  • Eligibility: The youngest borrower generally must be at least 62 years old, and the home must be your primary residence
  • Loan amount: Based on the youngest borrower's age, the home's appraised value, current interest rates, and program limits
  • Payment options: Available as a lump sum, monthly payments, a line of credit, or a combination, depending on the program
  • No monthly mortgage payment: You are not required to make monthly principal and interest payments while you live in the home as your primary residence
  • Interest: Interest accrues on the balance you've drawn and is added to the loan over time; rates may be fixed or variable depending on the program
  • Repayment: The full balance becomes due when the home is sold, when you move out permanently, or upon the passing of the last borrower
Key Benefits of a HELOC
  • No Required Monthly Mortgage Payment
    As long as you live in the home as your primary residence and keep up with taxes, insurance, and maintenance, you are not required to make monthly mortgage payments. This can free up significant cash flow during retirement.
  • Stay in the Home You Love
    A reverse mortgage allows you to access your equity without selling and moving. You keep the title to your home and continue living in the place that holds your memories and connections.
  • Flexible Access to Your Funds
    Whether you want a steady monthly supplement to your income, a line of credit for unexpected expenses, or a lump sum for a specific goal, reverse mortgages offer options to match how you actually want to use the money.
  • Supplement Your Retirement Income
    For many retirees, fixed income alone doesn't always cover everything. A reverse mortgage can help bridge the gap, covering everyday costs, healthcare expenses, home improvements, or simply providing greater peace of mind.
  • Federally Insured Protections with a HECM
    The HECM is insured by the Federal Housing Administration, which brings important borrower protections. One of the most significant is the non-recourse feature: you or your heirs will never owe more than the home's value when the loan is repaid through the sale of the property.
  • A Line of Credit That Can Grow
    With certain reverse mortgage lines of credit, the unused portion may grow over time, potentially giving you access to more funds in the future. This makes it a useful planning tool for many homeowners.

A fixed-rate mortgage offers several advantages for homebuyers who want financial stability and long-term predictability.


01 - Consistent Monthly Payments
Because the interest rate never changes, your principal and interest payment remains the same throughout the loan term. This helps make budgeting simple and predictable.


02 - Protection From Rising Interest Rates
Once your rate is locked in, increases in market interest rates will not affect your loan. Your payment stays exactly the same regardless of economic changes.


03 - Long-Term Financial Planning
Stable mortgage payments allow homeowners to plan for the future with greater confidence, making it easier to manage expenses and savings goals.


04 - Simple and Easy to Understand
Fixed-rate loans are straightforward and transparent. You know exactly what your payment will be and how long it will take to pay off the loan.

Important Considerations

A reverse mortgage is a meaningful financial decision, and it works best for homeowners who fully understand how it functions. Here are the key factors to think through before moving forward.

Eligibility Requirements


To qualify for a HECM, the youngest borrower generally must be at least 62 years old, and the home must be your primary residence. Lenders will also assess your ability to keep up with ongoing obligations such as property taxes and insurance. A financial review is part of the process to confirm the loan is sustainable for your situation.

Home Equity


The amount you can access depends heavily on the equity you've built. Homeowners with substantial equity and little or no remaining mortgage balance are generally in the strongest position. If you still owe on your current mortgage, the reverse mortgage proceeds must first be used to pay off that existing balance, which reduces the funds available to you.

Occupancy Rules


A reverse mortgage requires that the home remain your primary residence. If you move out for an extended period, such as relocating or moving into a care facility for more than 12 consecutive months, the loan may become due. It's important to consider your long-term living plans before committing.

Loan Costs


Reverse mortgages come with costs that should be understood clearly. These may include origination fees, mortgage insurance premiums on a HECM, appraisal fees, and other closing costs. Many of these costs can be financed into the loan, but doing so reduces the equity and funds available to you. Reviewing the full cost picture upfront is essential.

Impact on Heirs and Your Estate


Because the loan balance grows over time as interest accrues, the equity remaining in your home will likely decrease. This affects what you'll pass on to your heirs. When the loan becomes due, your heirs typically have options: they can repay the loan and keep the home, sell the home to satisfy the balance, or, with a HECM, walk away without owing more than the home's value. Talking openly with your family about your plans is a smart step.

Ongoing Obligations


Even without a monthly mortgage payment, you remain responsible for property taxes, homeowners insurance, any HOA dues, and keeping the home in good condition. Falling behind on these obligations can put the loan at risk and potentially trigger repayment, so it's important to budget for them.

Repayment Triggers


The loan becomes due and payable under specific circumstances: when the last borrower sells the home, moves out of the home permanently, passes away, or fails to meet the loan requirements such as paying taxes and insurance or maintaining the property. Knowing these triggers in advance helps you and your family plan with clarity.

Who May Be A Good Fit for A HELOC?

A reverse mortgage isn't the right choice for every homeowner, but for the right person in the right circumstances, it can be a valuable retirement tool.


You may be a strong candidate for a reverse mortgage if:


  • You're 62 or older and live in your home as your primary residence
  • You've built significant equity in your home and want to access it without selling
  • You plan to stay in your current home for the foreseeable future
  • You want to eliminate your current monthly mortgage payment to free up cash flow
  • You're looking for a way to supplement your retirement income or cover healthcare and living expenses
  • You want a flexible line of credit available for future needs or emergencies
  • You can comfortably keep up with property taxes, insurance, and home maintenance
  • You've discussed your plans with your family and understand how the loan affects your estate


Wondering whether a reverse mortgage fits your retirement goals? Our team can walk you through the numbers, explain your options in plain language, and help you weigh the decision carefully before you commit to anything.

Make Your Home Equity Work for Your Retirement


You've spent years building the value in your home. A reverse mortgage can help that value support the retirement you've worked toward, while you continue living in the home you love.


At Preferred Mortgage, we'll take the time to understand your goals, explain how a reverse mortgage works, and help you decide whether it's the right fit. We know the California market, and we're committed to giving you clear, honest guidance every step of the way.

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