Reverse Mortgage Lenders in Arizona

Reverse Mortgage is a loan program that allows you to convert some of the equity in your home into cash while you retain home ownership. A Reverse Mortgage works much like traditional mortgages, only in reverse. Rather than making a payment to your lender each month, the lender pays you. Unlike conventional home equity loans, Reverse Mortgages do not require any repayment for as long as you live in your home. Funds obtained from an Reverse Mortgage may be used for any purpose, including rising health care costs, supplement retirement, home improvements, and travel.

To qualify for a Reverse Mortgage, you must own and occupy your home as your permanent residence. The Reverse Mortgage funds may be paid to you in a lump sum, in monthly advances, through a line-of-credit, or in a combination of the three. The amount you are eligible to borrow is based on your age, the value of your home, and your equity after any liens are paid off.

Because you retain title to your home with a Reverse Mortgage, you also remain responsible for taxes, repairs, and maintenance. Depending on the plan you select, your Reverse Mortgage becomes due with when you permanently move, sell your home, pass away, or reach the end of the pre-selected loan term. The lender does not take title to your home when you pass away, but your heirs must pay off the loan. The debt is usually repaid by refinancing the loan into a forward mortgage (if the heirs are eligible) or by using the proceeds from the sale of your home.

What are people saying about their Reverse Mortgage? AARP National Survey of Reverse Mortgage Shoppers.

Survey In Brief Document Survey Source Document
Back-up plan: reverse mortgages can help folks afford retirement, but are they a good offering for insurers with banks?(Life: Reverse Mortgages)(Statistical table): An article from: Best's Review
Book (A.M. Best Company, Inc.)

3 to 5 year minimum

2009-01-31 11:30:30 by RM_Guy

If you are considering a reverse mortgage, plan on staying in the home for at least 3 to 5 years. I do not advise a shorter time period. The longer you have a reverse mortgage the less expensive the closing costs become. This is because you spread the costs over a greater number of years, thus lowering the annual costs.
In this respect they are similar to a "forward" mortgage. You would not get a 30 year forward mortgage if you knew you were leaving the home in 2 years, too expensive.
There are no "points" in a reverse mortgage. HUD does not allow such deception in reverse mortgages

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  • Avatar Scott B IndyMac owns Financial Freedom. Is it still safe to get a reverse mortgage with Financial Freedom?
    Jul 19, 2008 by Scott B | Posted in Personal Finance

    We are in the process of signing papers with Financial Freedom but I worry about them since the government seized their parent company IndyMac Bank. They say they can still make loans, but I worry if they will be able to continue the monthly payments. If I went with them, could I transfer to another lender at a later time?

    • I am told Financial Freedom is OK. If you did want to switch at a later date, you would have fees to pay. I have used Financial Freedom, but prefer Bank of America. We have wholesale account with both of them, as well as with JB Nutter.