Lots of people have been asking me about, and looking for information on, San Mateo reverse mortgage loans. I get a lot of questions about them so I thought that today I would counter a few misconceptions about them.

1. With a San Mateo reverse mortgage, the lender will own my home.


This is absolutely false. You, the borrower and home owner, will retain title to your property. The reverse mortgage lender is simply extending a mortgage loan to the home owner.


Because you are still the home owner, it is still your responsibility to pay the property taxes, pay the hazard insurance, and maintain your home as you would if you had a first mortgage or home equity loan.

2. The reverse mortgage lender will take my San Mateo home away if I outlive the loan.


This is also not true. Nor is the loan due at this time. As long as you remain living in the house as the primary resident and keep the taxes paid, you do not need to repay the reverse mortgage loan at this time.

3. I still have a first or second mortgage on my property and therefore cannot obtain a reverse mortgage.


False. You may still be eligible for a reverse mortgage even if you still owe money on a first or second mortgage. The funds received would be used to payoff whatever existing mortgages are levied on the property.

4. If home prices drop, I will owe more than what the house is worth.


You will never owe more than the appraised value of your house when your house is sold. A reverse mortgage will not affect any of your other assets.

5. My heirs must sell my home in order to repay the reverse mortgage.


Again, false. The repayment of the San Mateo mortgage loan can be satisfied by refinancing the home, or by using other assets.

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Chris Williamson is a Mortgage Advisor with Mortgage California specializing in San Mateo Mortgage.

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