How a Reverse Mortgage Work Traditional mortgages require borrowers to commence monthly mortgage repayment to lenders immediately after the loan closes. The loan balance continues to decrease with each monthly payment of the principal and interest.

The process is reversed in a HECM or reverse mortgage. Instead of making monthly repayments, the lender pays the borrower money upfront either in a lump-sum or over a certain period.

The exact amount you can receive depends on the appraised value of your home, the equity of your home, the age of the youngest borrower (if you have a spouse), and other factors.

The Reverse mortgage loans California becomes due for full repayment when the borrower moves out of the property, sells the home, or dies. In any case, the loan is paid back through a handful of repayment options.