Reverse Mortgages for Mesa, AZ Homeowners 62 and Older

What a Reverse Mortgage Is

A reverse mortgage is a loan for homeowners 62 and older that turns part of your home equity into money you can use, without a required monthly mortgage payment. You stay in your home and keep the title. Rather than shrinking each month the way a regular mortgage does, the balance grows over time because interest and fees are added to it.

The most common type is the HECM (Home Equity Conversion Mortgage). HECMs are insured by the FHA (the Federal Housing Administration), which adds important protections for borrowers and their families.

How You Can Receive the Money

A HECM gives you choices in how you access your equity:

• Lump sum: one payment at closing
• Monthly payments: a set amount for a period of time or for as long as you live in the home
• Line of credit: draw what you need, when you need it
• A combination: for example, part as a line of credit and part as monthly payments

Some homeowners also use a reverse mortgage to pay off an existing mortgage so they no longer have that monthly payment. Others use a HECM to help buy a new home that better fits this stage of life.

What You're Still Responsible For

This is the part I want every client to hear clearly. "No monthly mortgage payment" does not mean no costs. To keep the loan in good standing, you still need to:

• Pay your property taxes
• Keep homeowners insurance in place
• Pay any HOA dues
• Maintain the home and keep it in good repair
• Live in the home as your primary residence

If these aren't kept up, the loan can become due. Before you apply, the lender reviews your finances to make sure these ongoing costs fit your budget. Comfortable payment, not max approval, applies here too.

Counseling Comes First

Before you can get a HECM, you'll meet with an independent, HUD-approved counselor. They'll explain the costs, the alternatives, and how the loan affects you and your estate. I encourage you to bring your spouse or adult children. Clarity beats confidence, and the more everyone understands up front, the better the decision.

What Happens for Your Heirs

The loan generally becomes due when the last borrower sells the home, moves out permanently, or passes away. At that point your heirs have options:

• Keep the home by paying off the loan, often by refinancing or using other funds
• Sell the home, repay the loan, and keep any remaining equity
• Hand the home over to the lender if they don't want to keep or sell it

With a HECM, the loan is non-recourse. In plain English: you and your heirs won't owe more than the home is worth when it's sold, even if the loan balance has grown larger. FHA insurance covers the difference.

The Trade-Offs, Honestly

A reverse mortgage uses your equity, which can mean less left for your heirs. Upfront costs, including FHA mortgage insurance and closing costs, can be higher than other options. And because the balance grows over time, it's usually best for people who plan to stay in their home for the long haul. Sometimes a HELOC, a refinance, or downsizing makes more sense, and if that's the case, I'll tell you.

Let's Talk It Through

Know your numbers first. I'll sit down with you (and your family, if you'd like), lay out how a reverse mortgage would look for your home, and compare it with your other options. Straight answers, no pressure, and plenty of time for questions.

All program details on this page are general educational information only and are not an offer to lend or a loan quote. Eligibility, costs, and guidelines vary and are subject to change. HUD-approved counseling is required for HECM loans. Contact our team for details specific to your situation.