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What a reverse mortgage actually is

A reverse mortgage is a federally regulated loan that lets an eligible homeowner borrow against the equity they've built in their home. Unlike a traditional mortgage, the lender pays the borrower — as a lump sum, a line of credit, monthly draws, or some combination — and the balance is repaid when the borrower sells the home, permanently moves out, or passes away.

The most common product is the Home Equity Conversion Mortgage (HECM), insured by the FHA. For higher-value California properties above the federal HECM limit, proprietary ("jumbo") reverse mortgages can lend against values up to $4 million or more.

Who qualifies

• Borrowers must generally be 62 or older (some proprietary programs allow 55+).
• The home must be your primary residence — single-family, FHA-approved condo, townhouse, 2–4 unit where you occupy one, or manufactured home meeting FHA standards.
• You must have substantial equity — typically 50% or more.
• You must complete HUD-approved reverse mortgage counseling before we can process the loan. This is federally required and protects you.
• You must demonstrate ability to meet the ongoing property-charge obligations — taxes, insurance, HOA dues, and maintenance.

How you can receive the money

Depending on the program and your rate selection, you can take proceeds as:

• Lump sum at closing (fixed-rate HECM)
• Line of credit that grows over time at the same rate as the note (adjustable-rate HECM — often the most powerful option)
• Tenure payments — fixed monthly payments for as long as you live in the home
• Term payments — fixed monthly payments over a set number of years
• Modified — combine a line of credit with monthly payments

HECM for Purchase — buying with a reverse mortgage

One of the most underused tools in retirement planning. HECM for Purchase lets borrowers 62+ buy a new primary residence using a reverse mortgage — combining a meaningful down payment (typically 45–65% depending on age and rates) with reverse mortgage proceeds, and carrying no required monthly mortgage payment on the balance.

This is often how retirees right-size — selling a larger California home, downsizing into a single-story or age-appropriate property, and keeping more cash in the bank than a traditional purchase would allow.

Impact on your heirs

When the loan comes due (you sell, move permanently, or pass away), your heirs have options:

• Sell the home — pay off the reverse mortgage, keep any equity above the loan balance.
• Keep the home — pay off the reverse mortgage (refinance into a traditional loan or pay cash) for 95% of current appraised value or the loan balance, whichever is less.
• Deed the home to the lender — walk away with no further obligation, even if the loan exceeds the home's value. This is the non-recourse protection built into every HECM.

Heirs are never personally liable for any shortfall. The FHA insurance fund covers any gap — that's what the mortgage insurance premium pays for.

Ongoing obligations — what you must keep doing

A reverse mortgage is not free money. You remain responsible for:

• Property taxes (California Proposition 13 protections continue to apply if you qualify)
• Homeowners insurance
• HOA dues, if applicable
• Reasonable maintenance of the home
• Continuing to live in the home as your primary residence (60+ consecutive days away can trigger default)

If your financial assessment suggests risk around these obligations, the lender may require a Life Expectancy Set-Aside (LESA) — funds held aside from your proceeds to cover taxes and insurance over time.

Costs and what affects how much you can borrow

The amount you can borrow (your "principal limit") depends on the age of the youngest borrower, current interest rates, and the lesser of your home's appraised value or the HECM lending limit. Older borrowers and higher home values unlock more proceeds.

Reverse mortgage closing costs mirror traditional loans (origination, title, escrow, appraisal, recording) plus the FHA upfront Mortgage Insurance Premium (2.0% of home value for HECMs). Most costs can be financed into the loan, meaning little to no out-of-pocket at closing.

Financial implications worth understanding

• Interest accrues on the balance — unlike a traditional loan you're paying down, your balance grows over time until settlement.
• Taxes — reverse mortgage proceeds are generally not taxable income, but interest is typically not deductible until actually paid (usually at payoff). Consult your tax advisor.
• Means-tested benefits — Social Security and Medicare are generally unaffected, but needs-based programs like Medi-Cal or SSI can be impacted if proceeds push you over resource limits. Plan the distribution with that in mind.
• Non-borrowing spouse protections — current HUD rules protect an eligible non-borrowing spouse's right to remain in the home after the borrower passes, provided specific conditions are met at origination. We walk every couple through this.

When a reverse mortgage is a good idea — and when it isn't

Often a good fit if: you plan to stay in your home long-term, want to eliminate an existing mortgage payment, need to supplement retirement income, want a growing line of credit as a safety net, or are trying to delay claiming Social Security.

Probably not a good fit if: you plan to move within a few years, need a small amount of cash you could get more cheaply elsewhere, or are being pressured to take a reverse mortgage to fund an annuity or investment product. That last one is a red flag — walk away.

Why work with Curt on a reverse mortgage

Reverse mortgages reward patience and expertise. Product selection, rate timing, payout structure, LESA decisions, non-borrowing spouse documentation — the details compound. Curt has originated reverse mortgages for California homeowners across every product generation and has seen every way a file can go sideways. He takes the time to compare HECM against proprietary jumbo programs when your property value warrants it, and he coordinates with your CPA and estate attorney when they're part of the conversation.

Reverse mortgages are complex financial products and are not suitable for every borrower. This page is educational and not a commitment to lend. All reverse mortgage loans require HUD-approved counseling before application. You must meet FHA or program eligibility and continue paying property taxes, insurance, HOA dues, and maintenance costs. Loan terms subject to underwriting and property appraisal. NMLS #294442. Equal Housing Lender.

Placeholder notice. This privacy policy is a starting draft and should be reviewed by legal counsel or replaced with an attorney-prepared policy (or one generated by Termly, iubenda, or similar) before the site goes live. Mortgage originators in California are subject to the Gramm-Leach-Bliley Act (GLBA), the California Consumer Privacy Act (CCPA/CPRA), and CFPB Regulation P — all of which impose specific disclosure requirements.

1. Who we are

The Frandsen Group is a mortgage origination practice operating through Excel Mortgage Services. We are located at 7031 Koll Center Parkway, Suite 190, Pleasanton, CA 94566. You can reach us at 925-998-4276 or curt@thefrandsengroup.com. Curt Frandsen is licensed under NMLS ID 294442; Excel Mortgage Services operates under NMLS ID 321425.

2. Information we collect

We collect information you provide directly to us, including contact details (name, email, phone number, mailing address); financial information necessary for a loan application (income, assets, debts, credit history, employment); property details for the home you are purchasing or refinancing; and any correspondence or questions you send us. We also collect limited technical information automatically when you visit our site, including IP address, browser type, pages viewed, and referring URL.

3. How we use your information

To respond to your inquiries and provide mortgage origination services; to prepare loan applications, pre-approvals, and disclosures required by law; to share with lenders, investors, title companies, appraisers, and other parties necessary to originate and close your loan; to comply with federal and California state regulatory requirements; and to improve our website and communications.

4. Who we share it with

We share your information with lenders and service providers as required to process your loan, with regulators where required by law, and with our processing and underwriting partners at Excel Mortgage Services. We do not sell your personal information.

5. Your rights (California residents)

Under the California Consumer Privacy Act, California residents have the right to know what personal information we collect, to request deletion, to correct inaccurate information, and to opt out of the sale or sharing of personal information. We do not sell personal information. To exercise these rights, contact us at curt@thefrandsengroup.com or 925-998-4276.

6. Cookies and tracking

We use only essential cookies necessary for site functionality. If analytics or advertising cookies are added, this policy will be updated and — where required — a consent banner will be presented.

7. Security

We take reasonable technical and organizational steps to protect your information. Loan applications are processed through secured borrower portals (LendingPad). No method of transmission over the internet is 100% secure — please avoid sending sensitive financial information by unsecured email.

8. Contact

Questions about this policy? Email curt@thefrandsengroup.com or call 925-998-4276.

Placeholder notice. These terms are a starting draft based on standard lender-website language and should be reviewed by legal counsel before the site goes live. Mortgage originators in California are subject to federal TILA/RESPA/ECOA rules, state DRE and DFPI rules, and CFPB supervision — specific disclosures may be required for your jurisdiction and licensing structure.

1. Acceptance of these terms

By accessing or using thefrandsengroup.com (the "site"), you agree to these Terms of Service. If you do not agree, please do not use the site. The Frandsen Group reserves the right to update these terms at any time; continued use of the site after changes constitutes acceptance of the updated terms.

2. About us

The Frandsen Group is a mortgage origination practice operating through Excel Mortgage Services, licensed to originate residential mortgage loans in the State of California. Curt Frandsen is licensed under NMLS ID 294442 and California DRE License 00681926. Excel Mortgage Services operates under NMLS ID 321425. Our principal office is located at 7031 Koll Center Parkway, Suite 190, Pleasanton, CA 94566.

3. Permitted use of the site

You are authorized to view and print content from this site for personal, informational, and non-commercial purposes. You may not modify, reproduce, distribute, transmit, display, publicly perform, create derivative works from, or otherwise exploit any materials on this site for any commercial purpose without our prior written consent.

4. Not an offer or commitment to lend

The content on this site is for informational purposes only. It is not an offer to lend, a commitment to extend credit, a solicitation for a particular mortgage product, or a guarantee of rates, terms, or eligibility. Rates, programs, and terms are subject to change without notice and all loans are subject to credit, income, property, and underwriting approval. To request a rate quote or pre-approval, please contact us directly.

5. No professional advice

Information on this site is general in nature and is not intended as, and should not be relied on as, tax, legal, financial-planning, accounting, or other professional advice. Before making any decision that could affect your finances, we strongly recommend you consult with qualified tax, legal, and financial advisors of your choice.

6. Accuracy of information

We work to keep the site's content accurate and up-to-date, but we do not warrant the completeness, timeliness, or accuracy of any information on the site. Rate tables, loan limits, program guidelines, and regulatory references can change frequently — always confirm current figures with us directly before acting on them.

7. Third-party links & tools

The site may contain links to third-party websites or tools (for example, NMLS Consumer Access, rate-calculator resources, or partner application portals). These are provided for convenience only. We do not control, endorse, or assume responsibility for third-party content, privacy practices, or terms of service. Your use of third-party sites is at your own risk.

8. Communications & TCPA consent

If you submit a contact form or request information, you authorize us to respond via the email, phone number, or other contact information you provided. If you provide phone or mobile consent through our forms, you consent to receive calls and text messages from The Frandsen Group / Excel Mortgage Services, including calls or messages generated by automated dialers. Standard message and data rates may apply. You may opt out of text messages at any time by replying STOP, or opt out of other communications by contacting us at curt@thefrandsengroup.com.

9. Intellectual property

All content on this site — including text, graphics, logos, images, and software — is the property of The Frandsen Group, Excel Mortgage Services, or our licensors, and is protected by U.S. and international copyright, trademark, and other intellectual property laws. You may not use any mark, logo, or trade name appearing on the site without prior written permission.

10. Limitation of liability

To the fullest extent permitted by law, The Frandsen Group, Excel Mortgage Services, and their officers, employees, and affiliates are not liable for any direct, indirect, incidental, consequential, special, or exemplary damages arising out of or in connection with your use of (or inability to use) this site, including any loss of data, profits, or business, whether based on warranty, contract, tort, or any other legal theory — even if we have been advised of the possibility of such damages.

11. Equal Housing Lender & fair lending

We are an Equal Housing Lender. We make loans without regard to race, color, religion, national origin, sex, marital status, familial status, disability, age (provided the borrower has the capacity to contract), or source of income derived from any public assistance program, in accordance with the federal Equal Credit Opportunity Act, the Fair Housing Act, and applicable California law.

12. Governing law

These Terms are governed by the laws of the State of California, without regard to conflict-of-laws principles. Any dispute arising from these Terms or your use of the site shall be brought in the state or federal courts located in Alameda County, California, and you consent to the personal jurisdiction of those courts.

13. Contact

Questions about these Terms? Email curt@thefrandsengroup.com, call 925-998-4276, or write to us at 7031 Koll Center Parkway, Suite 190, Pleasanton, CA 94566.