Reverse mortgage (HECM) resource center
The most useful HECM education in North County San Diego.
A Reverse Mortgage is a powerful, misunderstood, and often mis-sold financial tool. This page exists to help you understand it before anyone tries to sell you one.
Myths, examined
The five most damaging misconceptions.
Myth · The bank takes your house.
You retain title. The loan is repaid when the home is sold, you move out, or upon passing — like any other mortgage.
Myth · Your heirs are on the hook.
HECMs are non-recourse. Heirs owe the lesser of the loan balance or 95% of appraised value.
Myth · You can lose the home if values fall.
A HECM is federally insured (FHA). Falling home values don't accelerate the loan.
Myth · You can't leave the home to your kids.
Heirs can pay off the balance and keep the home, or sell and keep the remaining equity.
Myth · It's a loan of last resort.
Used strategically, a HECM line of credit is one of the most flexible retirement tools available.
Eligibility, in plain language
Do you qualify?
- At least one borrower is 62+ (some proprietary products start at 55).
- The home is your primary residence.
- You have substantial equity (typically 50%+).
- You can afford property taxes, insurance, and maintenance.
- You complete HUD-approved counseling.
What it costs — honestly
Costs & trade-offs
A HECM has real, sometimes significant, closing costs — including FHA mortgage insurance. The right question isn't "is it cheap?" — it's "is the cost worth what it enables?" Rod will show a side-by-side written comparison before you decide anything.
Case studies
Three ways real North County homeowners have used a HECM well.
CASE 01
Delay Social Security to age 70
A couple in Encinitas used a HECM line of credit to bridge income from 66 to 70 — increasing lifetime Social Security by an estimated $180,000.
CASE 02
Protect the portfolio in a down market
A Carlsbad retiree drew from a HECM instead of selling equities during a 20% market decline, preserving the recovery.
CASE 03
Purchase a right-sized home
A widow used a HECM for Purchase to buy a single-story home closer to family — with no monthly principal-and-interest payment.
A note for adult children
Helping aging parents evaluate a HECM.
If you're researching a Reverse Mortgage on behalf of a parent, Rod encourages family conversations — not around a kitchen table with a salesperson, but with the numbers, the plan, and honest questions. He'll walk the whole family through the analysis together, at no cost or obligation.
Frequently asked
HECM questions, answered directly.
How much can I borrow with a HECM?
It depends on the youngest borrower's age, current interest rates, and the lesser of the home's appraised value or the FHA lending limit. Rod will run your exact numbers.
Do I still own my home?
Yes. Your name remains on title. The lender places a lien to secure the loan, exactly like any mortgage.
What happens if I outlive the loan proceeds?
You never have to leave the home as long as you meet the loan terms — taxes, insurance, maintenance, and residency.
Are proceeds taxable?
HECM proceeds are loan proceeds, not income, and are generally not taxable. Consult your tax advisor for your situation.
Can I still leave the home to my heirs?
Yes. Heirs may pay off the balance and keep the home, or sell and retain any remaining equity.
What are the costs?
Origination fee, FHA mortgage insurance premium, third-party closing costs, and servicing. Rod will show a written itemization before you commit to anything.
Reverse Mortgage consultation
Get the analysis before you get the sales pitch.
Rod will run your numbers, compare a HECM to the alternatives, and give you a written summary — even if the honest answer is 'not right now.'