The reverse mortgage is a very real financial solution available to Americans 62 years of age and up. The goal of the reverse mortgage is to provide you with income after retirement. Done right, a reverse mortgage can transform your retirement from pinching pennies to enjoying your golden years with dignity and security.

By using the equity in your home and taking out a loan, you gain access to a steady stream of payments from the bank. There are a variety of ways you can receive the money, from lump sum to monthly payments to a combination in between.

As long as you are 62 or older and own the home in which you live, you will qualify.

But how do you know you really need a reverse mortgage loan?

Take a look at some of the pros and cons:


  • You keep the title to your home if you take out a reverse mortgage.
  • You don’t need to pay back the loan unless you leave the house, and if you pass away, your heirs will never owe more than the value of the home.
  • You do not need to make any payments on the loan until it comes due, so you can keep receiving income from the reverse mortgage as long as you are in your home.
  • You can supplement your income to improve your lifestyle and keep your house at the same time.
  • Older citizens and those with more valuable homes may qualify for a larger loan amount.
  • You can spend the money on anything with no restrictions, so it can go to leisure, bills, or anything else that your budget needs.


  • If you leave the house for a year, then the entire loan becomes due. (This is most common for those going into an assisted-living facility or similar situation.)
  • It’s not free money. There are fees, as with any loan — and it is indeed a loan, meaning that money needs to be paid back eventually.
  • Because it uses the equity in your home, it lowers the amount of value your heirs will receive from your estate when you do pass away. They are also liable for the loan up to the value of the house, which could be a substantial amount of money.

And remember: this is no small decision, so if you’ve got questions or if you are interested in acquiring a reverse mortgage loan, you’ll need to talk with a lender. Your best bet is always to go with a direct lender that specializes in reverse mortgages.

If you’re in or near Thousand Oaks, CA, contact Capstone Direct Mortgage Financing to speak with a caring professional.