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

There 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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2992 N Miller Road Scottsdale, AZ 85251

$489,900

2 Beds

2 Baths

1,268 SqFt

Status Active

MLS # 6680864

Property Type Townhouse

Price Type --

Highly upgraded 2 bedroom condo in sought after Bellagio complex. Close to shopping and old town Scottsdale. Newer appliances (2 years), new floors in bathroom and laundry, new vanities and fixtures in both bathrooms by Jacuzzi Co. Large laundry room with new cabinets, sink and flooring. New water softener, new garage cabinets in double garage. Furniture available under separate bill of sale.

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29417 N 123rd Glen Peoria, AZ 85383

$489,900

4 Beds

2.5 Baths

2,622 SqFt

Status Active

MLS # 6682362

Property Type Single Family Residence

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Fantastic opportunity for this beautiful original-owner home in Vistancia Village that offers 4 bedrooms + den and loft in a spacious 2622 SqFt. The kitchen features 42'' white shaker-style cabinetry with hardware, granite countertops, subway tile backsplash, contemporary stainless/white Samsung appliances including a gas range and the matching refrigerator is included! Sliding doors lead out to the side patio with new pergola covering, pavers, and easy-care artificial turf, perfect for outdoor entertaining. Bedrooms and laundry are upstairs. The oversized primary bedroom has a step-out balcony and en-suite bath with extended dual sink granite vanity, framed mirrors, and large tiled shower with rain showerhead and glass surround. Upstairs bath also has granite counters and dual sinks,* and all bedrooms have walk-in closets. Other features include a den/office on the main level, under-stair storage, stone exterior elevation, and a 3 car garage. Community amenities include a private pool for the Village residents, and the Mountain Vista Club includes lap and resort pools, splash pad, tennis/pickleball courts, fitness studio, indoor basketball court, game room, and Vistancia's 3.5 mile Discovery Trail. See today!

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15252 N 100th Street Scottsdale, AZ 85260

$489,900

3 Beds

2 Baths

1,607 SqFt

Status Active

MLS # 6688936

Property Type Apartment

Price Type --

ASSUMABLE FHA LOAN at 5.75%. Beautiful 2 Bedroom plus den 2 Bathroom Condo in a Great Area of Scottsdale. This condo has a nice large great room perfect for relaxing and entertaining guests. The kitchen is open with lots of counterspace and upgraded cabinets and looks over into the great room so you can be part of the entertainment. The guest bedroom is good sized and shares a hall bathroom. The large primary bedroom has an ensuite complete with a walk-in closet, dual sinks, and a walk-in shower. There is an inside laundry and a storage area. Enjoy the great Arizona weather on your private patio overlooking a common area with grass and trees and a views of the McDowell Mountains. This complex is gated, has several pools and spas, & is close to shopping, freeways, schools, & restaurants! Trash included in HOA Fees.

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6855 W Darrel Road Laveen, AZ 85339

$489,900

4 Beds

2.5 Baths

2,598 SqFt

Status Active

MLS # 6700576

Property Type Single Family Residence

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Welcome to your dream home! This spacious 4-bed, 2.5-bath residence boasts a comfortable loft and a fresh, vibrant interior and exterior paint. Step into the newly renovated kitchen featuring sleek quartz countertops. Upstairs, enjoy the plush comfort of new carpets in all bedrooms and the versatile loft space. The main areas dazzle with luxury vinyl plank flooring, offering durability and style. Outside, the inviting pool has been resurfaced with Pebble Tec, perfect for relaxation and entertaining. Plus, the community offers a host of amenities, including a park with a splash pad, basketball courts, sand volleyball, and more. Don't miss out on this perfect blend of comfort and luxury!

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701 W Marlboro Drive Chandler, AZ 85225

$489,900

3 Beds

2 Baths

1,515 SqFt

Status Active

MLS # 6678423

Property Type Single Family Residence

Price Type --

Beautifully remodeled 3/2 with a pool in a great chandler neighborhood. Remodel was just finished including new quartz counters, laminate wood flooring in bedrooms, new shower in hall bath, new vanity, interior and exteror paint, new backyard landscaping with turf. new plaster in pool and much more...

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4320 Buffalo Ridge Wickenburg, AZ 85390

Open House

$489,900

2 Beds

2 Baths

1,580 SqFt

Status Active

MLS # 6684581

Property Type Single Family Residence

Price Type --

This charming home in Wickenburg Ranch boasts a spacious and inviting layout perfect for comfortable living. This 2 bed, 2bath residence features a welcoming ambiance with a seamless blend of functionality and style. Upon entering, you're greeted by wood-look tile flooring that exudes warmth and durability throughout the home. The open floor plan is ideal for both relaxation and entertaining. The kitchen is a focal point, adorned with granite countertops, a large island, and ample cabinetry providing both elegance and practicality. Whether you're preparing meals or hosting gatherings, this kitchen is sure to inspire culinary creativity. In addition this, thoughtfully designed home includes an office/den with french doors for privacy. Outside, the low-maintenance desert landscaping adds to the home's curb appeal while minimizing upkeep. Completing the property is a three-car garage, providing convenient parking and extra storage. Offering comfort and style in equal measure, this Wickenburg Ranch residence is the epitome of desert living at its finest.

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3935 E Rough Rider Road Phoenix, AZ 85050

$489,888

2 Beds

2.5 Baths

1,388 SqFt

Status Active

MLS # 6698165

Property Type Townhouse

Price Type --

Exclusive gated community boasting top-notch amenities. As you step inside, the elegance of tumbled travertine floors merges seamlessly with the allure of hardwood floors and wooden shutters, elevating your experience. The kitchen dazzles with granite countertops featuring a hand-chiseled edge on the island, a transparent glass pantry door, stunning glass tile backsplash, and stainless steel appliances. Enjoy surround sound throughout and energy-efficient LED lighting. Brand new AC in 2024!! Soft water pre-plumbing is in place. The 2-car garage offers built-in cabinets and epoxy flooring. Residents also enjoy access to the extensive Aviano clubhouse amenities, including fitness facilities, pools, spa, tennis and basketball courts, rock climbing wall, playgrounds, bike trails, and parks.

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422 E Huber Street Mesa, AZ 85203

$489,888

3 Beds

2 Baths

1,748 SqFt

Status Active

MLS # 6582614

Property Type Single Family Residence

Price Type --

SELLER OFFERING $5k in concessions!! This wonderful 3-bed & 2-bath property harmoniously blends comfort and charm. Offering a 2-car garage and a desert landscape. Discover an inviting layout showcasing a formal living room w/fireplace, a bright dining room adjacent to the kitchen, and a versatile family room w/French doors to the back. Plantation shutters, vaulted ceilings, designer paint, and a mix of tile & wood-look flooring enhance the home's relaxed ambiance. The kitchen boasts built-in appliances, granite counters, ample wood cabinets, a pantry, and a breakfast bar. Main bedroom is a private retreat with a full bathroom. Den has a double-door entry. You'll love the spacious backyard featuring an open patio, cozy deck, & a sparkling play pool & Spa for year-round enjoyment! Also boasting an office! Property recently painted and looking good!

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207 S Beaver Street Flagstaff, AZ 86001

$489,600

1 Bed

1 Bath

805 SqFt

Status Active

MLS # 6632519

Property Type Apartment

Price Type --

OPPORTUNITY DOWNTOWN FLAGSTAFF! This 1-Bedroom Condo has a covered patio's, and is Move-in-ready! This 5-story community was tastefully designed to accentuate the views off each deck of the 32 luxury units! Living the high life at 7000' feet is a breeze at The Views at Butler, just a step from Northern Arizona University & the nightlife in downtown. Watch the sunset reflect off the San Francisco Peaks while BBQ'ing on the oversized Roof-Top View Deck & lounge area. Convenience & ease are built into the community w key fob elevator, a trash shoot on every level & standard A/C. Beyond the aesthetic & downtown life vibe! Location, Convenience, Views & Community. It's the perfect home for you!

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16454 W Sandia Park Drive Surprise, AZ 85374

$489,500

2 Beds

2 Baths

1,870 SqFt

Status Active

MLS # 6675317

Property Type Single Family Residence

Price Type --

This PALO VERDE split floorplan with 2 bedrooms and a den, has been extended to include bay windows in the breakfast nook and primary bedroom. Before you enter this well-maintained home, you will be greeted with a beautifully designed courtyard with a seating area and lighting for enjoying the beautiful Arizona evenings. Inside, you will see an open living room and kitchen with stainless steel appliances and granite countertops. Your eyes will be drawn to the beautiful crown molding in the main areas. Ceiling fans in every room and 3 solar tubes have been added to allow more natural light in. Custom plantation shutters throughout, tile floors in all common areas with upgraded carpeting in the bedrooms. The expanded back patio is perfect for morning coffee or entertaining, featuring a built-in gas grill, shaded by an extended roof. There are several seating areas with a large motorized awning and ceiling fans to keep you cooler on those warm sunny days. On cooler evenings you can enjoy the hot tub and beautiful sunsets. There is a whole-home water filtration system and water softener. The gas hot water heater and HVAC were replaced in 2022. The garage has loads of built-in cabinets, providing ample space for storage, and a drive-up golf cart storage area. The Grand provides residents an active close-knit community with resort-style amenities that include four 18-hole golf courses, 3 restaurants, state of the art fitness center, day spa, 4 outdoor pools, indoor pool, card rooms, multi-purpose trails, tennis, pickleball & bocce courts, softball field, fishing lake, many social clubs & activities.

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2970 E Tie Down Drive San Tan Valley, AZ 85140

$489,490

4 Beds

3 Baths

2,105 SqFt

Status Active

MLS # 6697548

Property Type Single Family Residence

Price Type --

This beautiful home features a home within a home and is situated in San Tan Valley's newest master planned community. A wealth of amenities to enjoy. Homeowners will enjoy easy access to great local attractions and amenities, including shopping and dining at Queen Creek Marketplace, outdoor recreation at San Tan Regional Park, fresh produce at Schnepf Farms and popular sites such as Queen Creek Olive Mill. A copy of the public report is available on the Arizona Department of Real Estate's website.

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2996 E Tie Down Drive San Tan Valley, AZ 85140

$489,490

4 Beds

3 Baths

2,105 SqFt

Status Active

MLS # 6677706

Property Type Single Family Residence

Price Type --

Welcome to Wales Ranch! San Tan Valley's newest master planned community. A wealth of amenities to enjoy. Homeowners will enjoy easy access to great local attractions and amenities, including shopping and dining at Queen Creek Marketplace, outdoor recreation at San Tan Regional Park, fresh produce at Schnepf Farms and popular sites such as Queen Creek Olive Mill. A copy of the public report is available on the Arizona Department of Real Estate's website.

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