3 min read·
How a Lakewood Couple Eliminated Their Mortgage Payment
A retired Lakewood couple had expected to enter their later years free of a mortgage, but a refinance taken out to help a family member had reset their loan and stretched the balance well into retirement. Both in their early 70s, they were now devoting a large share of their fixed income to a payment they had hoped would be gone by now. The monthly bill cast a shadow over what they had imagined as their relaxed years.
Names and details have been changed for privacy. These are illustrative examples of common scenarios. Individual results vary; not a guarantee of any loan outcome.
The Challenge
The monthly payment of more than $2,100 was a large fixed expense that limited their ability to enjoy retirement and set anything aside. After the mortgage and essentials, there was little left for travel, healthcare surprises, or helping their grandchildren. Selling the home they loved just to escape the payment was not a trade they were willing to make.
The Strategy
Having finished the counseling HUD requires, they used a HECM to pay off the existing loan, which eliminated the required monthly mortgage payment while keeping them in their home.
The Outcome
Removing the $2,100 obligation freed up funds for travel, healthcare, and savings, giving their retirement more flexibility.
What This Made Possible
- Existing mortgage paid off
- Monthly payment of $2,100+ eliminated
- Freed funds for travel, healthcare, and savings
- Stayed in their home
Frequently Asked Questions
Can both spouses be on a reverse mortgage?
Yes. When both spouses are eligible borrowers, both are protected and the loan does not become due until the last borrower permanently leaves the home. Eligibility is generally based on the youngest borrower's age.
What happens to the home later?
When the last borrower permanently leaves, the loan is repaid — usually by selling the home or refinancing. Heirs keep any remaining equity, and because the HECM is non-recourse, they never owe more than the home's value.
Do I need enough equity to fully pay off my current mortgage to qualify?
Yes. A reverse mortgage must pay off any existing mortgage first, so you generally need enough available proceeds to cover that balance at closing. Many longtime homeowners have built up enough equity to do this; a loan officer can review your numbers after you complete HUD counseling.
Reverse Mortgages in Lakewood
Lakewood is a Southeast Los Angeles / South Bay community in Los Angeles County, with established neighborhoods like Lakewood Village, Carson Park, Mayfair. Many longtime homeowners here have built significant equity as values have risen over the years — equity a reverse mortgage can help convert into retirement cash flow without selling the home or taking on a monthly mortgage payment.
Reverse Mortgages in LakewoodMiguel A. Vazquez (NMLS #401212) is a California DFPI Licensed Mortgage Broker operating as Reverse Mortgage Plus / Home Central Financial. This website provides educational information only and does not constitute financial, tax, or legal advice. Loan estimates and illustrations are for informational purposes only. Actual terms depend on borrower qualifications, property value, and market conditions. Not a commitment to lend.
