A reverse mortgage can pay off your current mortgage, so no monthly principal and interest payment is required while you live in the home. Mark Boeck shows Arizona homeowners exactly what changes and what still applies.
A reverse mortgage pays off your current mortgage at closing. After that, no monthly principal and interest payment is required while you live in the home.
On a fixed income, a mortgage payment can take a large share of each check. Removing it frees that money for everyday costs, healthcare or savings.
You stay on the title and keep living in your home. The loan becomes due when the last borrower sells, moves out or passes away, or if taxes, insurance or upkeep fall behind.
Property taxes, homeowners insurance, HOA dues and upkeep continue. Keeping up with them keeps the loan in good standing, and you can make voluntary payments if you choose.
Because no monthly payment is required, interest and fees are added to the loan, so the balance grows over time. You or your heirs never owe more than the home is worth.
Your current mortgage must be paid off from the reverse mortgage or your own funds. Mark checks your numbers first, so you know whether the payment can be fully removed.
Mark Boeck, Retirement Mortgage Advisor (NMLS #107448), has more than 25 years in mortgage lending and helps Arizona homeowners remove their mortgage payment with confidence. Working with Mark means:
Eliminating your monthly mortgage payment can transform your retirement. Mark Boeck, Retirement Mortgage Advisor, answers the most common questions from Arizona homeowners about using a reverse mortgage to gain financial freedom and stay comfortably in the home you love.
At closing, the reverse mortgage pays off your existing mortgage, and no monthly mortgage payment is required on the new loan while you live in the home and meet its terms. You still pay property taxes, homeowners insurance, any HOA dues and upkeep.
Yes. You keep title and live in the home as your principal residence. The loan is secured by the home, and you must keep paying property taxes and insurance and maintain the property.
No monthly mortgage payment is required. You can make voluntary payments at any time, without a prepayment penalty, to slow the growth of the balance. The loan is repaid when the last borrower sells, moves out permanently or passes away.
Often, yes. If the amount you qualify for is more than your current mortgage balance, the difference can be taken as a lump sum, monthly payments or a line of credit. Mark can estimate how much would be left after your mortgage is paid off.
The loan becomes due. When you sell, the sale proceeds repay the balance and you or your estate keep any remaining equity. If the home sells for less than the balance, FHA insurance covers the difference on a HECM.
HECMs are insured by the FHA and include protections: independent counseling with a HUD approved counselor, limits on certain fees, and a rule that you or your heirs never repay more than the home is worth when it is sold. The balance still grows, so it suits homeowners who plan to stay and can keep up with taxes, insurance and upkeep.
