Year-round warm weather makes Arizona one of the top destinations for retirees. But many seniors have financial anxiety when thinking about retirement. Reverse mortgages can relieve that stress, allowing homeowners to reach their short-term financial goals and strengthen their retirement plans. Our partners at ConsumerAffairs reviewed the best reverse mortgage lenders in Phoenix to help you make the right decision.
A reverse mortgage allows older homeowners to convert part of the equity in their homes into cash. This type of loan helps retirees with limited income cover basic monthly expenses and pay for health care. It is called a reverse mortgage because the lender makes payments to the borrower instead of the borrower making payments to the lender.
There are several reasons why homeowners would consider a reverse mortgage in Phoenix. These reasons include things like supplementing retirement income, paying unexpected medical expenses, completing home improvements and repairs and purchasing a new home.
Winter visitors and retirees flock to Phoenix and its surrounding areas including Scottsdale, Peoria and Tempe because of the year-round warm temperatures. Arizona is ranked second for attracting the most people over 60. In fact, the state grew by 28,614 retirees in 2016.
Home values in Phoenix rise every year, supporting applications for reverse mortgages. In fact, the average home price increased by 8.8 percent in 2017. This raised the median home value to $238,330 with an average home equity of $13,000.
If you are considering a reverse mortgage in Phoenix, there are a few requirements:
You must be at least 62 years old.
The home must be your primary residence.
You must maintain the home’s condition while you are receiving payments.
The home must be one of the following: single-family, 2-4 unit property, HUD-approved condominium, townhouse or manufactured home built after June 1976.
When determining risk, lenders consider your home’s current appraisal value, your mortgage’s current interest rate, your credit history and the loan-to-value ratio. With most reverse mortgages, you have the right to cancel it without penalty within three business days. To do so, you must notify the lender in writing.
Finance of America Reverse provides Phoenix homeowners 62 and over with financial independence through reverse mortgages. Homeowners can leverage their home to meet short-term financial goals and lengthen retirement plans. Customers in Phoenix appreciate the company’s professional and helpful staff that made the process easy to understand.
Liberty Home Equity Solutions offers reverse mortgages in Phoenix to homeowners 62 and older who are looking to leverage their home equity to strengthen retirement plans. The company’s reverse mortgage solutions are useful in supplementing retirement income, paying off an existing mortgage and covering medical expenses.