Arizona Reverse Mortgages

What is a Reverse Mortgage anyway?

If you are retired, or simply over the age of 62 and you would like to take advantage of the equity you’ve in your home, Arizona Wholesale Mortgage Inc. can provide you with a Reverse Mortgage. It is a way to put the equity in your home to use during your retirement years.

Why pinch pennies month after month when you have all of that equity in your home, just sitting there and not doing anything for you? At the same time, you don’t want to sell your house.

An Arizona Reverse Mortgage may be your ideal situation.  The concept of a “Reverse Mortgage” is an odd one and we understand that.  The way a Reverse Mortgage works is actually very simple, but it might be hard to comprehend at first glance.

So in order to make sure you understand fully, we are going to explain it in the most simple way that we know how. Then, at the bottom of this page, you will find a link to an article from the Department of Housing and Urban Development (HUD) that also explains Reverse Mortgages.

Reverse mortgages (also called home equity conversion loans) enable homeowners to tap into their home equity without having to take out a traditional loan or sell their home.

Most people who take out a Reverse Mortgage tend to be retired and own their home. They may be on a fixed income such as pension or social security. AReverse Mortgage raises their monthly income considerably. It is also tax-free income.  There was a time when people would enter their “golden years” and they would have to sell their home to supplement their social security checks.  Of course, this was before reverse mortgages were an option.

Secondly a Reverse Mortgage is pretty much exactly what it sounds. Instead of the client making monthly mortgage payments to the bank, the bank makes monthly mortgage payments to the client. Let’s say you had a home that was completely paid off and it was worth several hundred thousand dollars. Instead of selling that home or taking out a new mortgage on it, the bank will send you a payment each month. In return, the equity in your home decreases. Repayment of the loan is not necessary until the borrower sells the property, moves into a retirement community, or passes away. When you sell your home or no longer use it as your primary residence, you or your estate must repay the money that you received from the Reverse Mortgage. Plus you must pay interest and other finance charges.

Still want more information?

A Reverse Mortgage is a type of mortgage loan available to seniors. It allows borrowers to convert their home equity into monthly cash payment. At the sametime you retain ownership of the property and avoid monthly mortgage payments.  Repayment of the loan defers until the borrower is no longer living in the home or passes away. In a typical mortgage, a home owner pays a monthly amortized amount. After each payment, the owner has more equity in the house. After a certain amount of time typically 30 years, the mortgage will be paid in full and the property is released from the debt. With a Reverse Mortgage, the homeowner receives a check each month. The monthly payment and the interest owed to the bank is subtracted from the equity of the home each month. In other words, for every payment the borrower receives, the equity in the home decreases.


“This material is not from HUD or FHA and this document was not approved by the Department of Government Agency.”