For many homeowners in Murrieta and Temecula, their home may be one of their largest retirement assets.

But there is an important distinction: having substantial home equity doesn't automatically provide money for monthly expenses.

A homeowner can have significant equity while still dealing with homeowners insurance, property taxes, healthcare expenses, home repairs and the everyday costs of retirement.

One option homeowners age 62 and older may want to investigate is a Home Equity Conversion Mortgage, commonly known as a HECM or FHA reverse mortgage.

A reverse mortgage isn't appropriate for everyone. But it is also frequently misunderstood.

Here are seven things homeowners—and their adult children—should understand before deciding whether a HECM deserves consideration.

1. A HECM Is an FHA-Insured Reverse Mortgage

The U.S. Department of Housing and Urban Development explains that the Home Equity Conversion Mortgage is the reverse-mortgage program insured by the Federal Housing Administration and offered through FHA-approved lenders.

A HECM allows an eligible homeowner to access a portion of the equity in a principal residence.

Depending upon the borrower, property and program requirements, proceeds may potentially be used for expenses such as home maintenance, repairs or general living expenses.

For 2026, HUD lists the HECM maximum claim amount at $1,249,125. This figure is not the amount every homeowner can borrow; actual available proceeds depend upon the applicable HECM calculation and individual circumstances.

2. HECM Borrowers Generally Must Be at Least 62

HUD requires HECM borrowers to be at least 62 years old.

The property must generally be the borrower's principal residence, and the homeowner must own the property outright or have sufficient equity. Existing mortgage liens generally must be satisfied in connection with the HECM closing.

The amount potentially available isn't based on one universal percentage of the home's value.

Factors can include the age of the youngest borrower or eligible non-borrowing spouse, current interest rates and the applicable property-value and FHA HECM-limit calculation.

That's why an online reverse-mortgage calculator should be considered an estimate rather than a loan approval.

3. You Still Own Your Home

One of the most common reverse-mortgage misconceptions is:

“The bank takes ownership of my house.”

A HECM is a loan secured by the home; it does not transfer ownership of the property to the lender simply because the homeowner obtains the reverse mortgage.

However, unlike a traditional amortizing mortgage where monthly principal payments normally reduce the loan balance, a HECM balance can increase over time as funds are advanced and interest and applicable charges accrue.

That distinction is important when considering future equity and estate planning.

4. No Required Monthly Principal-and-Interest Payment Doesn't Mean No Responsibilities

An eligible HECM borrower generally does not make required monthly principal-and-interest mortgage payments while the loan remains in good standing.

But the homeowner still has important responsibilities.

The borrower must continue meeting applicable requirements involving property taxes, homeowners insurance and property maintenance, along with other HECM obligations.

That means describing a reverse mortgage simply as “living mortgage-payment free” leaves out an important part of the story.

Homeowners need to understand both the benefits and the continuing responsibilities.

5. HUD-Approved Counseling Is Required

A valuable consumer-protection feature of the FHA HECM program is mandatory counseling.

Before completing the HECM process, the borrower must participate in a counseling session with an approved HECM counselor.

The counseling process is intended to help homeowners understand how the mortgage works, the financial implications, available alternatives and their responsibilities.

HUD provides assistance locating participating housing counselors at 800-569-4287.

At Premiere Capital Mortgage, we view education as an important part of the decision—not an obstacle to completing the loan.

6. A HECM Can Potentially Be Used to Purchase Another Home

Many homeowners are surprised to learn about HECM for Purchase.

Eligible borrowers can potentially use a HECM to help purchase a new principal residence.

The buyer contributes sufficient funds to cover the difference between the available HECM proceeds and the purchase price, along with applicable closing costs and other required funds.

That can create an interesting retirement-planning scenario.

For example, a homeowner might sell a larger two-story property and purchase a smaller single-story home closer to children or grandchildren while preserving more available cash than if the replacement property were purchased entirely with cash.

Whether that strategy makes sense requires an individual analysis.

7. Adult Children Should Understand the Decision Too

A reverse mortgage is the homeowner's decision, but when appropriate, we encourage homeowners to include adult children or trusted professional advisers in the conversation.

Why?

Because a HECM affects the home's future equity.

The loan generally becomes due after certain events, including when the last applicable borrower dies, sells the property or no longer occupies it as a principal residence.

HECMs also contain important non-recourse protections. Heirs and estates have specific options and requirements involving the property and repayment.

Understanding these issues before closing can prevent surprises later.

Why This Matters for Murrieta and Temecula Homeowners

Home equity remains significant throughout Southern California.

According to the California Association of REALTORS®, the August 2026 median price for an existing single-family home was $901,420 statewide and $600,000 for the Inland Empire. Riverside County's August median was approximately $632,990.

Those regional figures don't establish the value of an individual Murrieta or Temecula property, but they demonstrate why home equity can represent a substantial retirement asset for long-time Southern California homeowners.

For an older homeowner, the important question isn't simply:

“How much equity do I have?”

A better question may be:

“Could using some of my home equity improve my retirement—and what are the costs, responsibilities and tradeoffs?”

Let Premiere Capital Mortgage Help You Understand the Numbers

If you are 62 or older and own a home in Murrieta, Temecula or elsewhere in Southern California, Premiere Capital Mortgage can help you determine whether a reverse mortgage deserves consideration.

We'll review your existing mortgage, estimated home equity, objectives and potential alternatives.

Our goal isn't to convince every homeowner to obtain a reverse mortgage.

It's to help you understand the numbers well enough to determine whether one makes sense for your situation.

Call John Lawrence at Premiere Capital Mortgage at 951-634-9284 or visit PCMloans.net to request a confidential reverse-mortgage review.

FAQs

• How old do you have to be for an FHA reverse mortgage?

HECM borrowers generally must be at least 62 years old and satisfy the other applicable FHA requirements.

• Do I still own my house with a reverse mortgage?

Yes. A HECM is a mortgage secured by the property; obtaining the mortgage does not by itself transfer ownership of the home to the lender.

• Do I still pay property taxes and homeowners insurance?

Yes. HECM borrowers remain responsible for applicable property taxes, homeowners insurance, property maintenance and other required property charges. HUD specifically identifies these continuing obligations.

• Do I have to make a monthly mortgage payment?

HECM borrowers generally do not make required monthly principal-and-interest mortgage payments while meeting the loan requirements, although the loan balance typically grows over time.

• Can I purchase a house with a reverse mortgage?

Potentially. FHA's HECM for Purchase program allows eligible borrowers to purchase a new principal residence by providing the difference between available HECM proceeds and the purchase price plus applicable closing costs.

• What happens to a reverse mortgage when the homeowner dies?

The loan generally becomes due after the death of the last applicable borrower, subject to HECM servicing rules and protections for qualifying non-borrowing spouses. Heirs or the estate have options regarding satisfying the loan or disposition of the property.

Consumer Disclosure: This information is provided for educational purposes only and is not a commitment to lend, guarantee of eligibility, financial-planning advice or an offer of a particular interest rate or loan amount. HECM borrowers must satisfy applicable FHA requirements and complete required counseling. Borrowers remain responsible for property taxes, homeowners insurance, property maintenance and other applicable obligations. A reverse mortgage generally reduces available home equity as the loan balance increases and may affect the estate left to heirs. Program requirements, rates and availability are subject to change.