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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515 W Poncho Lane San Tan Valley, AZ 85143

$634,900

3 Beds

2 Baths

2,142 SqFt

Status Active

MLS # 6781033

Property Type Single Family Residence

Price Type --

Gorgeous 3-bed plus den/office home in The Estates at Johnson Ranch. The single-story layout features a spacious great room with 9' ceilings, tile flooring, & custom shutters throughout. The kitchen is stylishly appointed with top tier stainless steel appliances, an island with breakfast bar seating, walk-in pantry, & RO System. Energy-efficient with paid-off solar and two newer A/C units (2022). The split floor plan includes a generous master suite with private backyard access. Step outside to a resort-like yard featuring a lap pool, covered pergola, extended patio, raised garden beds, & two-tone fencing. 2- car garage with epoxy flooring & cabinets along with extra storage including multiple sheds, one 8'x30' with golf cart access through the RV gate. A true gem in a great neighborhood!

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7814 E Cypress Street Scottsdale, AZ 85257

$634,900

3 Beds

2 Baths

1,848 SqFt

Status Active

MLS # 6738297

Property Type Single Family Residence

Price Type --

Welcome to the highly desirable Cox Heights neighborhood near El Dorado Park and the Greenbelt in Scottsdale! Great South Scottsdale location near Old Town, ASU, Scottsdale Stadium with easy access to freeways! Quiet cul-de-sac street. Home features open floor plan with Living Room, dining room and Kitchen with island. Marble countertop, stainless steel appliances, New flooring and carpet all in Oct 2023. Exterior paint 2022, new ceiling fans 2022, new garage door opener 2023, added attic insulation 2021. A/C and Roof 2017, gas hot water heater 2018. North / South exposure!

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10105 E Sphere Avenue Mesa, AZ 85212

$634,900

4 Beds

3 Baths

2,324 SqFt

Status Active

MLS # 6763289

Property Type Single Family Residence

Price Type --

Discover the charm of this fabulous home with stone accents on the façade! Appealing interior showcases clean lines that promote an inviting atmosphere! You'll love the desirable open layout paired with wood-look tile flooring, recessed lighting, and a wall-mounted fireplace. Glossy stainless steel appliances, a walk-in pantry, subway tile backsplash, ample white cabinets with crown molding, a prep island with a breakfast bar, and quartz counters complete this immaculate kitchen. Romantic main retreat provides plush carpet, a private ensuite with dual sinks, enclosed glass shower, and a walk-in closet. The spacious backyard with artificial turf and a covered patio is ideal for hosting family get-togethers.

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20051 W Pasadena Avenue Litchfield Park, AZ 85340

$634,500

3 Beds

2 Baths

1,987 SqFt

Status Active Under Contract

MLS # 6776214

Property Type Single Family Residence

Price Type --

Welcome to this beautiful home on over an acre of land! Enjoy mountain views from your front patio and a new AC unit replaced this year! This home features 3 bedrooms, 2 bathrooms, updates throughout, and an open great room layout. You will love this stunning kitchen with granite countertops, stainless steel appliances, and a kitchen island with a breakfast bar. The soft neutral tones and elegant wood-look flooring throughout the home create a clean, cohesive aesthetic .The primary suite is spacious with an ensuite featuring dual sinks, a soaking corner tub, a separate shower, and a huge walk-in closet! The remaining 2 bedrooms have walk-in closets and ceiling fans. The laundry room has added upper cabinets for additional storage! The private backyard is fenced and offers an extensive covered patio with extensions. Enjoy easy care landscape with artificial grass. Beyond the back gate you will find a huge yard with plenty of room for horses and a 24X35 Insulated metal workshop/garage generator attached! Additional features include lifetime sunscreen film applied, insulated garage, gutters, Security doors on both patio doors, and pull-out shelves in kitchen. Do not miss out on this home!

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2528 W Coyote Creek Drive Phoenix, AZ 85086

$634,000

4 Beds

2.5 Baths

2,803 SqFt

Status Active

MLS # 6770980

Property Type Single Family Residence

Price Type --

This expansive home is nestled on a premium lot backing onto a wash, boasting mountain vistas and featuring 4 sizable bedrooms and 2.5 baths across more than 2800 Square Feet, which includes a separate casita! The layout encompasses two living spaces on the ground floor with plank tile floors and a neutral color scheme throughout. The kitchen is equipped with granite countertops, stainless steel appliances, including a double oven range, cabinets with pull-out shelves, a two-door pantry, an island with extra storage, and recessed lighting. All bedrooms are located upstairs. The primary bedroom includes a sitting area and an attached bathroom with a dual sink vanity, separate tub and shower, linen closet and a walk-in closet. Additionally, two secondary bedrooms come with walk-in closets. The private backyard is a haven with a covered patio featuring a ceiling fan, a heated pool and spa, ample flagstone-style decking, a firepit, low-maintenance desert landscaping, and fencing that provides views of the desert and mountains. The separate casita, complete with a wall-mounted AC unit, is perfect for use as a pool house, office, or gym. Other highlights are the recently updated A/C units, a laundry room on the main level, a guest powder room, and a two-car garage. Anthem Parkside presents exceptional amenities for the whole family, including over 30 parks and a community center with a gym, indoor basketball/volleyball courts, a 10-court pickleball complex, and an outdoor water park.

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5101 E Terry Drive Scottsdale, AZ 85254

$634,000

3 Beds

2 Baths

1,649 SqFt

Status Active

MLS # 6713504

Property Type Single Family Residence

Price Type --

BRAND NEW ROOF on this immaculate home on a corner lot conveniently located near the community pool, tennis courts and Greenbelt in highly desirable Paradise Manor. This charming home offers a private courtyard, vaulted ceiling in the light open living room with fireplace, 3 bedrooms, 2 baths and kitchen with NEW Dishwasher, SS appliances and granite countertops. Primary bedroom with large walk-in closet opens to the private covered back patio and main suite bathroom has separate shower and tub and double sink vanity with granite countertops. In addition, this superior Scottsdale location is just a few minutes drive to Kierland Commons/Scottsdale Quarter, Paradise Valley Mall, and numerous restaurants and shopping. Great opportunity to make this home with NEW water heater your own.

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1436 E Rosemonte Drive Phoenix, AZ 85024

$634,000

3 Beds

2.5 Baths

1,955 SqFt

Status Active

MLS # 6750566

Property Type Single Family Residence

Price Type --

Beautifully renovated residence in North Phoenix, with the option of an ASSUMABLE LOAN with 4.25% interest rate. Just moments away from the Loop 101, I-17 & 51 freeways, and the vibrant shopping and dining hubs at Desert Ridge & High Street! Thoughtfully designed 3-bedroom, 2.5-bathroom home featuring soaring vaulted ceilings, wood plank porcelain tile flooring, a stunning custom-tiled two-sided fireplace, and two distinct living areas! The recently revamped kitchen showcases elegant white shaker cabinets, gray quartz countertops, stainless steel appliances, subway tile backsplash, and ambient under-cabinet lighting. A few of the many recent upgrades are: all new upstairs carpet, master shower and tile renovation, 4 bathrooms faucet installation, new built-in Microwave, and new heat pump and air handler. The generously sized master suite is a haven, featuring a dual sink vanity, an expansive custom-tiled shower, white & grey veined quartz countertops, and exquisite designer accents. Embrace the scenic mountain views and sunsets from the primary suite balcony! Outdoors, discover a spacious covered patio complemented by a sparkling pebble tec swimming pool and synthetic grass, creating a delightful retreat. Noteworthy features include designer lighting, remote-controlled ceiling fans, Porter Barn Wood accents, a two-tone interior paint scheme, berber carpeting, wood beam ceilings, French doors, skylights, and custom cabinetry & shelving in the laundry room and garage, among an array of other features that make this home truly unique. Don't miss the chance to experience this exceptional property!

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3476 E Pinto Drive Gilbert, AZ 85296

$634,000

3 Beds

2 Baths

1,702 SqFt

Status Active

MLS # 6764649

Property Type Single Family Residence

Price Type --

Discover your oasis in Lakeview Trails at Morrison Ranch! This like-new, meticulously maintained home, built in 2019, features 3 spacious bedrooms, 2 luxurious baths, a versatile den and an additional bonus space. Upgraded throughout, the home boasts beautiful wood plank tile flooring that enhances its modern charm. The heart of the home is a large, open kitchen with a massive island, perfect for gatherings and culinary adventures. Step outside to your backyard paradise, complete with low-maintenance artificial grass, a built-in BBQ, and a cozy fire table for memorable evenings. With built-in permanent LED holiday lighting, your home shines year-round. Enjoy serene lake views, multiple playgrounds for the kiddos, and walking paths throughout this welcoming community with friendly neighbors. This gem won't last long-come see it today!!

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17040 W Echo Lane Waddell, AZ 85355

$633,999

4 Beds

3 Baths

2,529 SqFt

Status Active

MLS # 6769239

Property Type Single Family Residence

Price Type --

Ask about seller contribution for 2/1 interest rate buy down!! Don't miss this beautifully upgraded home featuring a full 3 bed/2 bath residence and an attached guest space w/ full kitchen, full size washer and dryer, separate bedroom and full bath... and sparkling pool to top it all off! This floor plan is perfect for multigenerational living, visiting family or friends or it can offer a great opportunity for rental income! This home is so light and bright and features an open floor plan with lots of windows and tastefully upgraded tile floors in all the right places. Both kitchens have beautiful quartz counters tops, 42'' cabinets, tile backsplash, stainless steel appliances and added open shelving. Bathrooms have quartz counter tops and showers with floor to ceiling tile. Outdoor spaces are low maintenance with paved decking, river rock and astroturf. The backyard is perfect for entertaining with a large covered patio and refreshing pool. The lighted pool and patio area create a serene evening oasis ideal for Arizona living. Northern Crossing is a gated community with walking paths and green parks for larger gatherings. All of this in a convenient location near grocery shopping, restaurants, and a hop skip and a jump away from the 303 for an easy commute.

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848 W Flatiron Trail Apache Junction, AZ 85120

$633,990

4 Beds

3.5 Baths

2,664 SqFt

Status Active

MLS # 6750683

Property Type Single Family Residence

Price Type --

Up to 3% of base price or total purchase price, whichever is less, is available through preferred lender plus additional 2% of base price or total purchase price, whichever is less, is available to be used toward closing costs, pre-paids, rate buy downs, and/or price adjustments. This elegant single-story Parklane floor plan features four bedrooms and a spacious flex area, perfect for use as an office, TV room, or study. The home includes front yard landscaping and will be move-in ready by October. Conveniently located near community parks, grocery stores, and dining options.

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4931 W Weeping Willow Way Laveen, AZ 85339

$633,935

5 Beds

4 Baths

3,475 SqFt

Status Active

MLS # 6772638

Property Type Single Family Residence

Price Type --

This amazing 5 Bedroom, 4 bath home with a 3-car garage home is on a large lot with a large, covered patio and plenty room for a wonderful pool and more. It has a highly sought-after full bedroom & bath downstairs, with 4 bedrooms, 3 baths & a loft upstairs & a 3 car garage. Wonderful Kitchen has a beautiful large island with Quartz countertops and a custom backsplash, walk in pantry & butler's pantry, This open kitchen is perfect for entertaining. All bedrooms are spacious and have walk in closets and connected with a wonderful upstairs loft. Master suite has his & her closets, separate tub & shower along with separate vanities. This beautiful home is under construction and will be ready in December. SELLER IS OFFERING CLOSING COST OR RATE BUY DOWN ASSISTANCE.

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4946 W Weeping Willow Way Laveen, AZ 85339

$633,892

3 Beds

2.5 Baths

2,300 SqFt

Status Active

MLS # 6763282

Property Type Single Family Residence

Price Type --

NEW HOME WITH AN RV GARAGE ON AN OVERSIZED LOT. This new home has 3 bedrooms + a den. Gourmet Kitchen has a wonderful island that opens to the large great room. Kitchen has Staggered,' upgraded painted cabinets, quartz countertops & stainless-steel appliances with double ovens, gas cooktop and designer hood. The den is perfect for that home office, work out room or kids play area. Home has beautiful wood plank tile throughout except the bedrooms. Master suite is split from the other secondary rooms. Don't miss the amazing over 40' RV Garage along with the 2-car garage. Perfect for all your toys. This community is surrounded with mountain views. This lot is 10' deeper than the standard lots and 5' wider. Come make this one yours. Completion date early 2025.

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