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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615 W University Drive Mesa, AZ 85201

$1,400,000
3 Beds
1.5 Baths
1,386 SqFt
Status Active
MLS # 6774011
Property Type Single Family Residence
Price Type --
Prime Multi-Family Development Opportunity in Downtown Mesa's Sought-After Opportunity Zone! Located on a generous 1.33-acre lot at 615 W University Dr, this property offers an exceptional chance for developers. Significant progress has already been made with architectural plans and City approvals for a 27-townhome project. This unique lot, which spans from North Date to North Kosick, consists of five parcels, offering extensive frontage along University Drive. Ideally positioned just one block north of downtown Mesa and the light rail, this property is also minutes from major freeways, the ASU campus, schools, and various shops.

22873 S 193rd Street Queen Creek, AZ 85142

$1,400,000
5 Beds
3 Baths
3,440 SqFt
Status Active
MLS # 6779387
Property Type Single Family Residence
Price Type --
This beautiful red brick home sits on a city acre and is just as gorgeous on the inside as the outside. It has been completely remodeled with stunning features great for hosting. This 5 bed, 3 bath 1 story with a split floorplan has 2 living spaces, new flooring, cabinetry, doors, & completely remodeled Bathrooms with high end finishes throughout. The kitchen was awarded the ''Showcase Your Space'' 2021 Remodel of the Year by Capitol Mark Interiors & includes custom cabinetry, upgraded appliances, satin bronze hardware, & Zellige back splash. The backyard feels like a resort with new stone patio, fireplace with TV, limestone counter BBQ, sparkling pool, firepit with tons of seating and gathering spots. The RV Gate allows easy access for additional driveway, Casita, or Detached Garage.

7026 E Warner Road Tempe, AZ 85284

$1,400,000
5 Beds
5 Baths
5,500 SqFt
Status Active
MLS # 6780197
Property Type Single Family Residence
Price Type --
INVESTOR OPPORTUNITY in a highly sought after location in Tempe. City approved easement on the west side of the properties for access to the North lot; Renovate the existing home or build one large residence. This is a rare opportunity with a variety of possibilities, in a prime Tempe location.

10602 W Electra Lane Peoria, AZ 85383

$1,400,000
6 Beds
5 Baths
3,386 SqFt
Status Active
MLS # 6784168
Property Type Single Family Residence
Price Type --
Welcome Home! This stunning property has it all, offering a main home with 3,035 sqft of living space, 5 spacious bedrooms, and 4.5 bathrooms, plus a separate 351 sqft bedroom and bath within the RV garage—ideal for guests or a private office suite. Step into an incredible chef's kitchen featuring a massive island and a folding glass wall that seamlessly connects indoor and outdoor living. The resort-style backyard is truly one-of-a-kind, boasting a luxurious infinity-edge pool and spa, an outdoor living area with a built-in BBQ and fireplace, and a putting green for a bit of friendly competition. The impressive RV garage, equipped with a 220 outlet, provides a 50x16.5 space on the RV side, with a large storage area above the office. This property blends elegance, convenience, and functionality to create an unforgettable living experience. Don't miss the chance to make it yours!

5516 W Melinda Lane Glendale, AZ 85308

$1,400,000
5 Beds
4.5 Baths
4,100 SqFt
Status Active
MLS # 6785183
Property Type Single Family Residence
Price Type --
Rare Find in Arrowhead Lakes! An Entertainers Dream Home by AslanHomesUSA. This forthcoming to-be-built home Includes architectural plans fully approved by HOA design committee. Buyer can take over with builder and choose all finishes. Please note, Photos provided to illustrate approximate finished appearance. Back yard photos are from a neighboring home for reference. Nestled against the mountainside, this coveted lot offers a perfect blend of natural beauty and urban convenience. Your backyard? A serene mountain escape with hiking and biking trails steps away. Stunning views of the city skyline, sparkling lakes, and majestic mountains. Close to world-class golf, top-tier shopping, and vibrant entertainment, this location is unbeatable.

12776 N 78th Street Scottsdale, AZ 85260

$1,400,000
4 Beds
3 Baths
3,175 SqFt
Status Active Under Contract
MLS # 6781005
Property Type Single Family Residence
Price Type --
Nestled in the heart of the Buenavante neighborhood is a fantastic home that offers a great split floor plan that checks a lot of boxes.Enter through the double doors into a spacious living/dining room w/ views to the back gardens. A separate family room with cozy fireplace makes room for everyone. Updated kitchen with lots of storage & great island for easy prep & a place for guest to hangout. The primary is a dream w/ a fireplace, nice sitting area & access to the pool. Primary bath is wonderful w/ separate tub/shower & separate vanities & closets. The Jack & Jill bathroom between 2 of the bedrooms makes for a great kid setup plus there is a 3rd full bath for guest. South facing backyard w/ an inviting pool & established landscaping. Bonus - No Short Term Rentals allowed in subdivsion.

744 W Royal Palm Road Phoenix, AZ 85021

$1,400,000
3 Beds
3.5 Baths
3,547 SqFt
Status Active Under Contract
MLS # 6784881
Property Type Single Family Residence
Price Type --
If you're a fan of natural light and wide open spaces, this is the home for you! Classic 3 bed, 3.5 bath home on a half acre, irrigated, corner lot in the Royal Palm neighborhood. Tons of flex space - 2 office areas and 3 living spaces as well. Gorgeous views from nearly everywhere in the house. All 4 bathrooms have been remodeled, and the kitchen updated with white shaker cabinets, quartz countertops, and stainless appliances. Beautiful hardwood oak floors recently refinished. Inviting front patio welcomes friends and neighbors, and expansive back covered patio will be the pool party hub. Room for an urban farm too - chicken run area on side yard, as well as lots of fruit trees - 3 massive pecans, apricot, peach, rosemary, basil. Room for all your people, and your ideas!

2432 Leisure World -- Mesa, AZ 85206

$1,400,000
4 Beds
4.5 Baths
3,800 SqFt
Status Active
MLS # 6784370
Property Type Single Family Residence
Price Type --
A rare opportunity! Custom built 4 bedroom , 4.5 bathroom home on a quiet cul-da-sac in Leisure World. Located on the fifth hole of Coyote Run Golf Course and overlooking holes twelve and thirteen. A large great room, a formal dining room, an office , four bedrooms with there own bathrooms plus a half bath, Indoor kittchen features top of the line appliances and a breakfast bar.Access the martini bar via a spiral staircase to the upper level with a fantastic view of the valley. The side yard has a summer kitchen with a retractable awning top and side awnings, The golf course patio is accessible by opening the 20 foot wide electric patio door. The home also features a double garage and a double golf cart garage. Fully Furnished.

39791 N Country Lane San Tan Valley, AZ 85140

$1,400,000 - 5Br/3Ba -  for Sale in Sun Valley Farms, San Tan Valley
New
$1,400,000
5 Beds
3 Baths
3,595 SqFt
Status Active
MLS # 6788522
Property Type Single Family Residence
Price Type --
Huge rate buydown incentive!!! Horse property in highly sought after neighborhood w/ a basement, pool & flood IRRIGATION. This 3.3 acre lot property offers a circular driveway, fully extended porch & mature trees. The equestrian amenities feature 6 covered stalls w/ auto waters, tack room, RV hook up, hay barn & newer 4 rail fencing. Stepping out to your backyard you'll find a gorgeous pool surrounded by professionally designed landscaping, built-in fireplace & an extended covered patio, perfect for entertaining. The laundry room offers plenty of storage & extra refrigerator space. In addition, ground water rights are owned by the Property Owners. This is a true rare find in one of the most desired horse property communities around.

28847 N Royce Road San Tan Valley, AZ 85144

$1,400,000
3 Beds
3 Baths
2,915 SqFt
Status Active
MLS # 6782003
Property Type Single Family Residence
Price Type --
Rare, turn-key & exceptional fully fenced, custom horse property nestled on an oversized 5-acre lot! Great curb appeal w/ stone accent details, desert landscape, low maintenance artificial turf, RV gate, 6 horse stalls, 4-car garage & private well. Open floor plan w/ plantation shutters, light & bright neutral palette, & tile in common areas. Designed for everyday living & entertaining featuring a formal dining & spacious great rooms w/surround sound! Gourmet kitchen boasts 42'' cabinets, SS appliances, granite counters, mosaic tile backsplash, & oversized island w/breakfast bar. Walk-in pantry & staggered cabinetry w/ ample storage. Enjoy the majesty & adventure of living w/ in 3 miles of San Tan Regional Park. Nearby shopping 2.5 miles away, QC Marketplace w/ in 20 minutes. The double doors open to the owner's suite, featuring a lavish bathroom with two walk-in closets, two vanities, a tiled step-in shower, & a soaking tub. Laundry room with a sink & cabinetry for added convenience. The HUGE backyard has been tastefully divided! Relax under the full-length covered patio & paver-Ramada while enjoying the unobstructed tranquil vistas. Beyond the fence, you have an expansive open space with a run-in shed for your horses. Bring your toys, trucks, RVs, & other animals - this property has plenty of space! Don't miss this fantastic opportunity!

9618 W Staghorn Road Peoria, AZ 85383

$1,400,000
4 Beds
3.5 Baths
3,768 SqFt
Status Active
MLS # 6781096
Property Type Single Family Residence
Price Type --
Simply Stunning! Trophy Home. For the discriminate home & lifestyle seeking owner desiring Uniques Finishes Unmatched by other homes. Situated on a premium lot in this gated community, this formidable first-class residence features rarely seen to never impeccable classic 'MasterCraft' spectacular finishes that could be described as a work of art. This lovely property also boasts premium cabinetry & unparalleled finishes throughout this residence. The bright open concept offers grandeur and luxury & is purely ideal for entertaining. Enjoy the resort-like backyard. Built by Maritage Homes, it is built smarter - it features energy efficiency & promotes a low HERS industry standard rating with sustained excellence. Claim this property as yours. Community playground, fitness stations, ramadas & trails. It's more than a residence, it's a lifestyle.

10417 N 180th Drive Waddell, AZ 85355

$1,400,000
4 Beds
3 Baths
3,799 SqFt
Status Active
MLS # 6730289
Property Type Single Family Residence
Price Type --
Welcome to your dream retreat! This exceptional 4 + bedroom 3 bathroom, single story residence is situated on a spacious 1 acre corner lot in the gated community of Cortessa Laureates Estates. This exceptional luxury home is perfect blend of elegance, comfort, and convenience, making it an ideal escape for those seeking a winter haven or a year-round sanctuary. Property Highlights: Breathtaking Indoor Design and Amenities: This 3,799 sq ft home features an exquisite design with custom tailored finishes and meticulous attention to detail.From the grand entrance to the spacious living areas, every inch of this home exudes sophistication and style. The gourmet kitchen is a chef's delight, featuring ample space for culinary creations. The master suite is a private retreat with a spa-like bathroom and a spacious walk-in closet. Multiple guest suites ensure that your visitors experience the same level of comfort and luxury. Outdoor Oasis: Immerse yourself in the tranquility of the beautifully landscaped grounds. The expansive outdoor living space comes complete with a pristine pool - perfect for cooling off during warm Arizona days and an elevated spa for ultimate relaxation. After sunset, the ambiance easily transforms into a nighttime oasis with permanent gemstone and landscape lighting throughout; ensuring this homes appeal will shine no matter the occasion. Perfect for Entertaining: Host unforgettable gatherings and create cherished memories in a setting that combines elegance and warmth. The open-concept floor plan and seamless indoor-outdoor flow make this home ideal for entertaining. The oversized outdoor patio features a custom-built island with an outdoor kitchen. Enjoy alfresco dining under the stars or sipping wine gathered around the firepit with plenty of built in seating. Prime Location: Experience the best of Arizona living with easy access to everything you need. Situated in the coveted community of Cortessa Laureates Estates, this home offers proximity to Sterling Grove Golf Course and the White Tank Regional Park; perfect for the outdoor enthusiasts. Only 10 minutes from some of Arizona's most popular restaurants, shopping, and entertainment including Costco, Fat Cats Family Fun Center, Sprouts, OHSO Brewery, Barrio Queen, Cold Beer and Cheeseburgers, Firebirds Steak House, Cooper's Hawk Winery and much more. Easy highway access, only 15 minutes from the Seattle Mariners Spring Training Center, and 35 from Phoenix Sky Harbor International Airport. Turnkey Convenience: This property comes with an array of services already in place to ensure a worry-free lifestyle. Housekeeping, pool maintenance, and yard care teams that know the property inside and out, so you can focus on enjoying your time in paradise. Additionally, they will even go as far as starting your car while you're away, ensuring your battery stays charged and ready for your next adventure. Whether you're seeking a seasonal retreat or a permanent residence, this property offers the perfect blend of elegance, comfort, and convenience. Book your private tour and discover unmatched beauty and luxury of this Arizona gem!

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