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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3030 E Broadway Avenue Apache Junction, AZ 85119

New

$474,900

2 Beds

2 Baths

1,248 SqFt

Status Active

MLS # 6698727

Property Type Manufactured Home

Price Type --

Almost 38,000 sf lot with majestic mountain views with NO HOA!!! 2 Bedroom, 2 Bathroom Affixed Mfg home with 30'x40' detached RV garage, owned solar, new mini split AC's, painted stucco exterior and newly remodeled inside bathrooms. Relax on your 10'x30' backyard covered patio and enjoy stunning sunrise and sunsets in your private above ground Jacuzzi or hang out at the fire pit. Open kitchen with 42'' cabinets, island with bar top, newer stainless steel appliances and refrigerator. This property has a circular drive, views of the Superstition Mountains, 10 x 20 bonus storage room recently stuccoed. Incredible 30 x 40 ft. oversized Garage, car hobbyist work shop Man Cave with loft storage, and room for your toys. This Horse Property is located 1/4 mile from miles of Horse trails, just bring your corrals! Located close to the U.S. 60, Hiking, Biking, Horse trails. Amazing corner lot property with NO HOA!

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18766 W Farmer Road Buckeye, AZ 85326

New

$474,900

4 Beds

2 Baths

2,001 SqFt

Status Active

MLS # 6701897

Property Type Single Family Residence

Price Type --

Welcome home! Highly desired Egret floorplan. This 4 bedroom/2 Bath home is completely upgraded with granite counter tops, huge walk-in pantry, 20X20'' tile floors, upgraded front elevation with full front porch and full yard landscaping both front and back of the house. $35,000 owned solar system produces consistent negative electric bills. Over $40,000 in landscaping and exterior upgrades. House also contains SMART House Upgrades and Energy Star appliances. This is a MUST see with the Seller offering $5,000 in concessions.

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1701 W Clarendon Avenue Phoenix, AZ 85015

$474,900

2 Beds

1 Bath

860 SqFt

Status Active

MLS # 6619696

Property Type Single Family Residence

Price Type --

**Gorgeous 2-bed, 1-bath Encanto Bungalow nestled in Phoenix's vibrant heart: An Exceptional Short-Term Rental Income Gem with a Ready-to-Build ADU Expansion Opportunity. **the potential addition of the ADU will offer an extra 560 sq. ft. of rentable space, maximizing your rental opportunity. Once the ADU comes to fruition, envision a sprawling 4-bed, 3-bath sanctuary that could be rented to up to 3 separate tenants, in the heart of the city. The property provides parking for up to 6 vehicles, and its exterior is adorned with an expansive, furnished patio, capturing the essence of Arizona's refined outdoor lifestyle. Stepping inside, you'll be greeted by a luminous living area, segueing into a gourmet kitchen complete with a modern coffee station and top-tier appliances. In-unit washer and dryer enhance the convenience factor. The lush outdoor area, equipped with a BBQ setup, beckons for gatherings and tranquil moments alike. Beyond its aesthetic appeal, this bungalow stands as a promising and strategic investment prospect for the experienced owner.

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8312 E Orange Blossom Lane Scottsdale, AZ 85250

$474,900

3 Beds

3 Baths

1,752 SqFt

Status Active

MLS # 6493243

Property Type Townhouse

Price Type --

COME FALL IN LOVE. NEW CARPETING 6/26/23. WONDERFUL OPPORTUNITY TO OWN A SPACIOUS 3 BEDROOM TOWNHOUSE NEAR DOWNTOWN SCOTTSDALE. PERFECT LOCATION WITH GUEST PARKING ON THE STREET IN FRONT OF YOUR NEW HOME. SUPER FLOOR PLAN WITH LIVING ROOM, FAMILY ROOM AND KITCHEN OVERLOOKING REAR PATIO. ENJOY THE EASY CARE WOODEN FLOORS. TAKE ADVANTAGE OF THE PRIVATE INTERIOR LAUNDRY. SUPER LARGE MASTER BEDROOM WITH WALK-IN CLOSET UPSTAIRS WITH TWO ADDITIONAL BEDROOMS AND GUEST BATHROOM. TOTAL OF 2.5 BATHS. SHADED REAR PATIO AND ASSIGNED PARKING DIRECTLY BEHIND YOUR NEW HOME FOR 2 VEHICLES. CHATEAU DE VIE 3 IS CLOSE TO SCOTTSDALE'S FAMOUS INDIAN BEND WASH SYSTEM OF PARKS AND RECREATION FACILITIES AND AWARD WINNING SCOTTSDALE COMMUNITY COLLEGE. IT'S A GREAT NEIGHBORHOOD AND HOME. BATHROOM COUNT 1+3/4+1/2.

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43605 W Elizabeth Avenue Maricopa, AZ 85138

$474,900

4 Beds

2.5 Baths

3,736 SqFt

Status Active

MLS # 6605630

Property Type Single Family Residence

Price Type --

***AMAZING HOME! AMAZING PRICE!*** Welcome to your new home in the desirable Senita Community! This gorgeous 2-story property offers a desert landscape, a mature shade tree, & a 3-car garage. Discover a welcoming living/dining room & a well-sized family room. Tall ceilings, wood-plank & stylish tile flooring, ceiling fans, & a warm palette are some features worth mentioning. The kitchen is fully equipped w/granite counters, a captivating backsplash, recessed lighting, a pantry, wood cabinetry, a breakfast nook, & an island w/a breakfast bar. Double doors open to the carpeted den/office. And there's a first floor half bathroom. Venture upstairs to find a spacious loft w/a custom dry bar that is excellent for entertaining. You'll find an oversized main retreat showcasing a sitting area, a full bathroom w/dual sinks, & a walk-in closet. Three additional well sized bedrooms upstairs, all with walk in closets and another full bath. The vast backyard provides a covered patio, a built-in BBQ, pavers, a lush landscape, & a refreshing pool ready to enjoy! Don't miss out! Upgrades include: AC and Air Handler 2023, Wood look tile 2021, Granite Countertop 2022, Energy saving sunscreens throughout the home 2022!

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1714 E Diamond Avenue Mesa, AZ 85204

$474,900

3 Beds

2 Baths

1,998 SqFt

Status Active

MLS # 6606094

Property Type Single Family Residence

Price Type --

Good Friday Price Reduction! Look no further! This fantastic 3 bed/2 bath home, just minutes from Downtown Gilbert and the Mesa Light Rail, is a gem. It boasts a charming curb appeal, circular driveway, and a welcoming porch. As you step inside, natural light fills the space, creating a warm and inviting atmosphere. The home features a spacious bonus room with a brick fireplace, perfect for cozy winter nights by the fire or entertaining with a projector. This property falls within the Community Lending geographical area and qualifies for lower rate mortgage financing due to the Community Reinvestment Act. Special Conventional interest rates for this program are below market and can save the borrower hundreds per month. (Not a land trust) The owner's suite offers a peaceful retreat with a walk-in closet and French doors leading to the yard. The secondary bedrooms are well-sized and conveniently separated from the owner' suite. Now, let's talk about the backyard, a true entertainer's paradise! It includes a large diving pool with a built-in table, a lush grass lawn, a spacious shed, a misting system, an extended back porch, (2) 250-amp outlets, an RV gate, and alley access. Several key updates have been made, including a new pool pump in 2020, a water purifier in 2018, a new AC in 2017, a roof replacement in 2014, a water heater in 2020, new grass and sprinklers in 2021, updated carpet in 2020, and fresh interior paint in 2021. This home is move-in ready and has everything you need to enjoy comfortable living and entertaining.

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7438 E Hum Road Carefree, AZ 85377

$474,900

2 Beds

2.5 Baths

1,916 SqFt

Status Active

MLS # 6632985

Property Type Townhouse

Price Type --

REDUCED. Seller Motivated! Out of state move. Spacious townhome in the heart of Carefree. Enjoy all the amenities, sport court, bocce, basketball and pickleball. Community fire pit, heated pool and spa! Plus walking distance to Carefree Sundial. This home boasts a living room with a kiva fireplace, wet bar, vaulted ceilings with a custom ceiling fan. All new stainless appliances, New flooring. New WD on bedroom floor! 2 Large bedroom suites have exterior doors to the covered patio. Loads of storage, loft in the oversized 2 car garage which leads to a walk in, stand up attic, AND direct entry to kitchen. 55+ community, small percent under 55 allowed. Nest programmable thermostat, sensors on each floor. Small, friendly community for year round/winter enjoyment. Meticulously maintained! Optimal living, refresh cabinets and countertops to your taste and this home will be your perfect retreat.

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42916 N 43rd Drive New River, AZ 85087

$474,900

4 Beds

2 Baths

1,790 SqFt

Status Active

MLS # 6652020

Property Type Single Family Residence

Price Type --

Welcome to your beautiful home in the highly popular Anthem West community. Home features a very elegant kitchen with matching black appliances with a built-in microwave, large island with high-top breakfast bar, gas cooking stove, a pantry, and stainless-steel refrigerator. Home also features a split primary suite with a beautiful bay window, a full primary bath with dual vanities, a separate tub and shower, a private toilet room, a spacious walk-in closet, and large garden style soaking tub. Additional features include plantations shutters, NEW CARPET, a built-in BBQ out back with and an extended patio with pavers, and much more.

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6056 E Helios Drive Florence, AZ 85132

$474,900

5 Beds

3 Baths

2,725 SqFt

Status Active

MLS # 6660709

Property Type Single Family Residence

Price Type --

ATTENTION! THIS HOME HAS AN ASSUMABLE LOAN AT A FIXED RATE OF 3.25% WITH A MONTHLY PAYMENT OF $1,893.62. CALL FOR DETAILS!! Beautiful newer home with Pool located in the highly desirable Magic Ranch community. Prime lot with North, South Exposure and a sparkling pool in back! Featuring many upgrades such as 9' ceilings, Shaw Ceramic Tile Floors, Granite countertops in the kitchen. Whirlpool Stainless steel appliances and white cabinetry. Spacious walk-in closet in owner's suite! The backyard features a generous covered patio, extended pavered patio, beautiful pool and pergola to protect you from the sun. Minutes from hiking trails and scenic mountain views! Neighborhood Park, greenbelts, playgrounds and covered picnic tables. Located near Queen Creek, highly rated schools, shopping, dining and aquatic center.

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3669 E Ironhorse Road Gilbert, AZ 85297

$474,900

3 Beds

2 Baths

1,515 SqFt

Status Active

MLS # 6664792

Property Type Single Family Residence

Price Type --

This adorable turn-key residence in Power Ranch is the one for you! Inside, the HUGE living room with sliding glass doors leading to the back patio sets the tone for a cozy living experience. Fresh paint, neutral palette, tile flooring, newly replaced plush carpets, and lovely archways are beautiful attributes. The eat-in kitchen comes with cabinets with crown moulding, stainless steel appliances, and a convenient pantry. Check out the large primary bedroom featuring a private bathroom with a shower & tub combination and a walk-in closet. The secondary bedrooms include well-sized closets. In the spacious backyard, you'll find a covered patio and a mature tree that provides refreshing shade!

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1647 E Grand Ridge Road Queen Creek, AZ 85140

$474,900

2 Beds

2 Baths

1,574 SqFt

Status Active

MLS # 6673612

Property Type Single Family Residence

Price Type --

This Monaco plan is ready for you! Start enjoying Encanterra in 2024! The home is situated on a premium homesite with no neighbors behind, tons of privacy and mature trees. Cozy up by the backyard fireplace and enjoy your morning coffee or glass of wine at night. The front courtyard is ideal for entertaining or waving to the neighbors as they walk by. The den makes a perfect home office but also offers a built in Murphy bed for extra guest space. Upgraded tile is throughout the main living areas and the home offers a ton of natural light that creates a beautiful flow. This home is as short walk to the main clubhouse and Encanterra offers tons of amenities at your fingertips. Start living the Good Life at Encanterra today!

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1350 S Greenfield Road Mesa, AZ 85206

$474,900

4 Beds

2.5 Baths

1,750 SqFt

Status Active

MLS # 6677598

Property Type Townhouse

Price Type --

Become the proud owner of this lovely 4-bed, 2.5-bath townhome in Tesoro at Greenfield! Discover an inviting great room with high ceilings, a neutral palette, blinds for privacy, and durable tile flooring. The kitchen boasts polished granite counters, abundant white cabinetry with crown moulding, sleek built-in appliances, a mosaic tile backsplash, a pantry, and a two-tier peninsula with a breakfast bar for casual dining. Relax after a long day in the main bedroom, offering direct backyard access, a private bathroom, and a walk-in closet. The serene backyard is complete with a covered patio, stylish pavers, and low-maintenance artificial turf. Don't let this opportunity pass you by!

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