Understanding the Reverse Mortgage and How to Use It to Tap into Home Equity

Understanding the Reverse Mortgage and How to Use It to Pay Off a Regular MortgageThere are a variety of mortgage products out there that serve the needs of different homeowners, but it can be hard to know what will work best for you. If you happen to be close to retirement and are looking at options that may be more financially beneficial for you, here are the details on a reverse mortgage and how this product can work for you.

The Details On A Reverse Mortgage

The reverse mortgage was created in 2009 as the Home Equity Conversion Mortgage for Purchase (HECM) following the 2008 recession. While this type of mortgage is only available to homeowners who are 62 or older, it offers a way for people to tap into the equity of their home so that they are not required to pay monthly mortgage payments. There are limitations imposed on this product, but this can be useful, as long as all risks and terms of the mortgage are understood.

What’s Required To Apply?

In order to utilize this mortgage product, the homeowner must have paid off their property entirely or have a significant amount of equity in their current home. As people who want to use a reverse mortgage will have to go through a credit check, they will have to be able to prove that they have the ability to pay for all the fees associated with home ownership. This can include common expenses like insurance, property tax and any other applicable charges that come with a monthly mortgage payment.

How You Can Use It

A reverse mortgage can be confusing to understand.  It is intended for those who want to receive monthly payments, get a lump sum payment from their equity or even access a line of credit, or just as a means of tapping into additional funds.  This means that the overall loan balance of the mortgage will increase over time due to interest.  Also, insurance may not be paid consistently.  The reverse mortgage assumes that these expenses will be taken care of once the owner has passed away and the property can be sold or the loan balance is paid by heirs.

A reverse mortgage can be a beneficial product for homeowners nearing retirement, but it’s important to be aware of the associated costs and risks involved to determine if this product is beneficial for you.  For more information, give me a call – J.P. Cook – 602-320-4253.

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10246 E Prairie Hawk Lane San Tan Valley, AZ 85143

$450,000 - 3Br/2Ba -  for Sale in S8 T3s R9e, San Tan Valley
New
$450,000
3 Beds
2 Baths
1,344 SqFt
Status Active
MLS # 6682979
Property Type Manufactured Home
Price Type --
Experience the ultimate in rural living with this charming 3-bedroom, 2-bathroom manufactured home nestled on a sprawling 1.25 acres of land, free from the constraints of HOA regulations. This property offers the perfect blend of tranquility and convenience, with a shared well providing ample water access and electricity readily available. As the surrounding area undergoes rapid development and growth, this property stands as an excellent investment opportunity, offering the chance to capitalize on the burgeoning market while enjoying the peacefulness of rural life. With a reasonable price tag and endless potential, this home represents not just a place to live, but a smart investment in your future. Don't miss out on the chance to make this idyllic rural retreat your own!

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$450,000
2 Beds
2 Baths
1,834 SqFt
Status Active
MLS # 6676600
Property Type Single Family Residence
Price Type --
Paid for solar means electricity bills under $40 a month! Exquisite 2-bedroom, Plus Den, 2-bathroom gem. Palo Verde Model. Step into a world of harmonious living with its seamless open layout that effortlessly connects the kitchen and great room, ideal for both dining and entertaining. Indulge in chef's kitchen with granite counters and stainless steel appliances, perfect for culinary adventures. Plus, enjoy the added benefits of an extended garage for your golf cart & tons of garage storage. Step outside for the tranquility of mature citrus trees, providing an outdoor oasis. Split bedroom floor plan. With paid-for solar, annual electricity bill of just $237, a recently redone roof, and new AC system still under warranty for peace of mind!

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$450,000
3 Beds
2.5 Baths
1,422 SqFt
Status Active
MLS # 6676968
Property Type Townhouse
Price Type --
Welcome to this charming property with a natural color palette that creates a warm and inviting atmosphere throughout. The kitchen boasts a center island, a nice backsplash, and plenty of storage space for all your cooking needs. The master bedroom features a walk-in closet for added convenience. Additional rooms offer flexible living space to suit your lifestyle. The primary bathroom includes double sinks and good under sink storage for optimal organization. Don't miss out on this opportunity to make this house your home!

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$450,000
3 Beds
2 Baths
1,735 SqFt
Status Active
MLS # 6677357
Property Type Single Family Residence
Price Type --
This is one special property! Located on the 18th green of the Sundance Golf Course. Spectacular MOUNTAN VIEWS! This wonderful 3-bedroom, 2 bathroom home features beautiful QUARTZ COUNTER TOPS, a large kitchen island plus a breakfast bar. The kitchen opens to the spacious family room and dining area. The 3rd bedroom is set up perfectly to be used as a den, office or bedroom. The primary suite features an ensuite with dual sinks and walk-in closet with updated counter tops. Step outside to your covered patio with sunshades, misters, and manicured gardens. Take a dip in the SPARKLING POOL while relaxing with your favorite beverage. The home is energy efficient with SOLAR and SUNSCREENS. Don't miss your chance to own your move-in ready home in Sundance, BEING OFFERED FULLY FURNISHED. Sundance is your premier Active Adult Community in Buckeye. Enjoy your days either golfing, swimming, tennis, pickleball, working out in the fitness center and plenty of other social activities. The Sundance Golf Club features an 18-hole golf course, pro-shop, restaurant. Make Sundance your home today. Some of the home's upgrades include: Plantation shutters Upgraded irrigation system Upgraded lighting R.O System Upgraded baseboards Crown Moulding 100 gallon water heater Built in cabinets in the garage Epoxy garage floors Pool filter, 1 year old Golf ball Sunscreens Patio Misters Paver patio New refrigerator Washer 1 year old Fruit trees (lemon and lime)

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