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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10705 E Champagne Drive Sun Lakes, AZ 85248

$475,000

2 Beds

2 Baths

1,641 SqFt

Status Active

MLS # 6684434

Property Type Single Family Residence

Price Type --

This beautiful home is located close to the Clubhouse, community pool and lake. Newer HVAC unit, plantation shutters and some updated flooring.

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7827 N Sunset Ridge Prescott Valley, AZ 86315

Open House

$475,000

3 Beds

2 Baths

1,547 SqFt

Status Active

MLS # 6685046

Property Type Single Family Residence

Price Type --

Turn-key, open concept, split-plan in the much sought-after Viewpoint subdivision. NEW roof (2021), NEW LVP waterpoof flooring (2021) throughout (carpet only in 2 of 3 bedrooms); freshly painted neutral interior and exterior paint (2022); all new window treatments. Open island kitchen with ample cabinets and pantry, double sided cabinet island and extra wide dining space. Spacious fenced low maintenance back yard with rear covered patio. Energy saving Gas heat; gas hot water heater; gas range/oven; and gas fireplace. Vaulted ceilings and spacious master suite with walk in closet. Lightly lived in, meticulously maintained home with low HOA fees.

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5231 E Red Bird Lane San Tan Valley, AZ 85140

$475,000

4 Beds

2.5 Baths

2,135 SqFt

Status Active

MLS # 6685418

Property Type Single Family Residence

Price Type --

Welcome to your dream home nestled just moments away from the vibrant heart of San Tan Valley. This exquisite custom residence radiates sophistication and meticulous craftsmanship, evident from the moment you set eyes on its captivating curb appeal. The front yard, ensconced within a charming fence and gated entry, sets the tone for the luxury that awaits within. Step inside to discover a modern oasis adorned with tasteful accents and premium finishes. The interior exudes elegance with its contemporary and neutral palette, complemented by sleek ceramic tile flooring that seamlessly flows throughout the home. As you enter the living room, your gaze is drawn upward to the enchanting tray ceiling, equipped with pre-wired surround sound, perfect for immersive entertainment experience The heart of the home, the spacious kitchen, beckons with its seamless integration into the living space. Custom kitchen cabinets, adorned with white quartz countertops, provide both functionality and style, while state-of-the-art Samsung appliances, including a refrigerator, dishwasher, microwave, washer, and dryer, elevate the culinary experience. Plantation shutters adorn every window, adding a touch of elegance and privacy to each space. Elevated ceilings grace the main living areas, soaring to 10 feet, enhancing the feeling of openness and grandeur. Retreat to the master en suite, where relaxation awaits in the luxurious soaking tub, surrounded by pristine white quartz countertops and custom mirrors. Outside, the delights continue with an RV gate and ample space for recreational vehicles and toys, ensuring endless outdoor adventures. A sprawling covered patio, adorned with cooling fans, invites al fresco dining and leisurely gatherings, while a meticulously crafted pavered area awaits your grill for memorable barbecue nights under the stars. With attention to detail evident at every turn, this stunning home offers a lifestyle of unparalleled luxury and comfort. Don't miss the opportunity to make this exquisite sanctuary your own.

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11035 E Topaz Avenue Mesa, AZ 85212

$475,000

3 Beds

2 Baths

1,792 SqFt

Status Active

MLS # 6686143

Property Type Single Family Residence

Price Type --

Amazing 3 bed 2 bath, open-floor plan, Bella Via home on an oversized lot in east Mesa! Besides the ideal location with north/south exposure, this home features 10' ceilings combined with a split, open floor plan, making it live and feel like a much bigger space! Kitchen is well appointed with gas range, island sink, and matching stainless. The split floor plan offers a huge central living space with maximum privacy. Plus, this home has Owned solar! No payments.. electricity bills under $10. Don't forget the oversized epoxy-floor garage with space for a third vehicle! Tons of storage. And a nice little orange tree in the backyard! This home has what you need in the $500k price range. Come see it! Welcome home!

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30817 W Bellview Street Buckeye, AZ 85396

$475,000

3 Beds

2 Baths

2,171 SqFt

Status Active

MLS # 6686245

Property Type Manufactured Home

Price Type --

This 3-bedroom, 2-bathroom home offers the perfect blend of rustic charm and modern convenience. GreatRoom flows seamlessly into the kitchen, epitomizing the sought-after farmhouse vibe. The heart of the home, a spacious kitchen, features ample counter space and storage, ideal for those who love to cook and entertain. Primary Suite & Guest Bedrooms include walk in closets and provide comfort and tranquility. The game room is located next to the Guest Bedrooms. Outdoors, enjoy a covered deck that invites early morning moments or relaxing evenings by the fire pit. The property boasts an ext'd 2-car garage with add'll carport, perfect for keeping your vehicles and equipment sheltered. Two on-site containers keep your belongings organized. Property is fully fenced.

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10804 W Cottontail Lane Peoria, AZ 85383

$475,000

3 Beds

2 Baths

1,889 SqFt

Status Active

MLS # 6687334

Property Type Single Family Residence

Price Type --

Welcome home in the desirable Tierra Del Rio subdivision! This charming 3 bed, 2 bath residence boasts a den and a bonus room off the master bedroom, perfect for a home office or gym. Enjoy gatherings in the spacious eat-in kitchen with granite countertops, island and family room. Step outside to your private backyard featuring a covered patio, a built-in BBQ synthetic grass and cozy fire pit. With a 2-car garage and proximity to shopping, schools, TSMC factory, and freeway access, this home offers both functionality and convenience. Don't miss the chance to make this your forever home!

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18455 N 167th Lane Surprise, AZ 85374

$475,000

3 Beds

2 Baths

2,061 SqFt

Status Active

MLS # 6687490

Property Type Single Family Residence

Price Type --

Welcome to your amazing 3 bedroom (plus a den) / 2 bath home in the very desirable Bell West Ranch subdivision in Surprise. Wonderful open floorpan features a great room perfect for entertaining. Nicely remodeled with vinyl wood plank flooring throughout. Kitchen is designed with white quartz countertops, white painted cabinets, and stainless appliances. Modern style ceiling fans and lighting fixtures are updated throughout the home. The 3 car garage provides ample storage. Very large backyard with RV gate and RV parking. With convenient access to shopping, dining, and entertainment, this home offers the ideal combination of comfort and convenience.

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546 S 199th Drive Buckeye, AZ 85326

$475,000

4 Beds

3 Baths

2,151 SqFt

Status Active

MLS # 6687707

Property Type Single Family Residence

Price Type --

Fall in LOVE with this charming home in Blue Horizons! Offering 4 beds, 3 baths, 3-car tandem garage, & a well-manicured landscape. Discover an inviting interior that features a designer palette & wood-look tile flooring t/out. Ideal for those who love to entertain, this gem's open layout ensures seamless & enjoyable gatherings! The kitchen boasts SS appliances, granite counters, a pantry, subway tile backsplash, recessed & pendant lighting, dark wood cabinetry, and an island w/breakfast bar. Main bedroom has a tray ceiling, a walk-in closet, and an ensuite with dual sinks & a separate tub/shower. Versatile den can be an office or reading nook! There is also a storage room for added convenience. Outback, you have a covered patio, Gazebo, well-laid pavers, & artificial turf. Move-in ready!

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1920 E Bell Road Phoenix, AZ 85022

$475,000

4 Beds

3.5 Baths

2,124 SqFt

Status Active

MLS # 6688378

Property Type Townhouse

Price Type --

SELLER IS OFFERING UP TO $10,000 CASH CREDIT AT CLOSING FOR BUYER TO USE FOR ANY PURPOSE. Elevate your lifestyle in this remarkable corner condominium, the largest in Parkside, boasting extra windows that flood the space with natural light and offer picturesque views of the sparkling pool. With two primary bedrooms—one conveniently located on the ground floor and another on the top floor—this residence offers unparalleled flexibility and privacy. Step into the expansive open floorplan, designed with seamless flow for effortless entertaining. Slide open the two glass doors and invite the refreshing breeze indoors as you prepare meals all while engaging guest in the living and dining room. Exclusive living reaches new heights in this gated community, where every amenity has been thoughtfull or watch your children play in the playground. Discover the epitome of Arizona living with easy access to dining, entertainment, and recreation options, all within reach of this coveted address. Embrace a lifestyle of luxury and convenience at Parksidewhere every day feels like a retreat.

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2209 E Marconi Avenue Phoenix, AZ 85022

$475,000

3 Beds

2 Baths

1,538 SqFt

Status Active

MLS # 6690980

Property Type Single Family Residence

Price Type --

Showings start at 3pm

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3324 E Luna Drive San Tan Valley, AZ 85143

$475,000

4 Beds

3 Baths

2,343 SqFt

Status Active

MLS # 6691341

Property Type Single Family Residence

Price Type --

BRAND NEW, NEW CONSTRUCTION HOME! NEVER LIVED IN. AVAILABLE NOW! This is your opportunity to get into Meritage Homes just completed Phase I of Bella Vista Farms. The owners closed on this new built home in June of last year but life plans changed and they never moved in. Their loss is your gain! This upgraded home is the Meritage Lark floor plan with the ''Lush'' interior package. With a spacious great room, upgraded kitchen,4 bedrooms PLUS a teen room, everyone has their own personal space when they need it plus the ability to come together and enjoy each others company as well. Sitting on a view lot, you have no neighbors behind you and the view fencing gives great views of the planned landscaped wash behind the home as well as the Superstition Mountains. And did I mention there is no wait or build time? This home is move in ready and can close as quickly as you need.

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695 S Kellis Road Wickenburg, AZ 85390

$475,000

3 Beds

2 Baths

1,587 SqFt

Status Active

MLS # 6692819

Property Type Single Family Residence

Price Type --

Nestled in the heart of Wickenburg, this great location that combines convenience with tranquility. Charming courtyard entry welcomes you as you enter this lovely home with a spacious split floor plan, providing privacy and versatility for its occupants. As you step inside, you're greeted by tile floors that guide you through the inviting living spaces. Entertain or unwind on the covered patio, overlooking the fenced backyard , offering both security and ample space for outdoor activities. A two-car tandem garage ensures parking convenience while providing additional storage option For those with hobbies or storage needs, an extra storage shed stands ready to accommodate. The property's charm is further enhanced by a beautiful fountain as you pull into the driveway, Plus mo

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