The number of homeowners in California taking out reverse mortgages, in which company makes monthly payments to the owner, has declined over the past years. It is opposite to national trend where number of reverse mortgages has been rising.
This situation is caused by the fact, that home values in California have fallen sharply, becouse loan amount is based on value the home, and homeowners have less equity against which they can borrow.
In the Sacramento metropolitan area the median home sale prices has fallen by a third since 2005. Less equity caused that maximum amount of a reverse mortgage is $362,000.