Access your home equity in retirement
Reverse Mortgages
For homeowners 62 and older, a reverse mortgage lets you access your home equity without monthly mortgage payments. The loan is repaid when you sell the home or pass away.
Reverse mortgage in Arizona: the short answer
- What it is
- A Home Equity Conversion Mortgage, the FHA-insured reverse mortgage, lets homeowners 62 and older borrow against home equity with no monthly mortgage payment. The loan comes due when the last borrower moves out, sells or dies, and it can never exceed what the home sells for.
- Who it is for in Arizona
- Retirees with substantial equity who plan to stay in the home, who need income, want to retire an existing mortgage payment or want a standby line of credit, and who have weighed what it means for heirs.
- What RJP does
- RJP does not originate loans. We look at the whole retirement picture first, then refer you to licensed reverse mortgage specialists we trust and coordinate the loan with your trust, your income plan and your heirs' expectations.
- What the lender does
- The licensed lender takes the application, arranges the HUD-required counseling session, orders the appraisal, closes the loan and services it. Terms, fees and eligibility are set by the lender and FHA rules.
The Equity in Your Home Is Real Money. You Should Be Able to Use It
Many Arizona homeowners sit on hundreds of thousands of dollars in home equity but have no way to access it without selling. A Home Equity Conversion Mortgage, commonly called a reverse mortgage, lets homeowners 62 and older convert part of that equity into cash without monthly mortgage payments. You stay in the home, the title stays in your name, and the loan is repaid when the last borrower sells, moves out, or passes away.
A reverse mortgage is a powerful tool. It is also not right for everyone. The right answer depends on equity, expenses, heirs, and the rest of your retirement plan.
How RJP Approaches the Decision
RJP does not originate reverse mortgage loans. We refer clients to licensed reverse mortgage specialists we trust, and we coordinate their work with your broader financial plan. Before recommending one, we look at the full picture together.
- Equity and cash-flow review, mapping current equity against monthly expenses and other income sources
- Heir and legacy alignment, talking through what passing the home to children would look like before any loan is placed
- Payout structure, comparing lump sum, monthly payments, and standby line of credit against the goal
- Plan integration, coordinating with your trust, your tax advisor, and your existing accounts so the move fits the rest of the plan
- Specialist handoff, introducing you to a vetted HECM specialist who handles the FHA-insured loan itself
Why It Matters
Used well, a reverse mortgage can supplement income, eliminate an existing mortgage payment, cover healthcare costs, or sit unused as a financial safety net. Used carelessly, it can complicate an estate or shrink an inheritance you intended to leave. We help you make the decision with the full picture in front of you.
Many Arizona retirees sit on hundreds of thousands of dollars in home equity but have no way to access it without selling. A reverse mortgage changes that equation entirely.
Is a Reverse Mortgage Right for You?
A reverse mortgage is not for everyone. But for the right homeowner, it can be a valuable part of a retirement plan.
- Retirees with Significant Home Equity. If your home is your largest asset and you need additional income, a reverse mortgage lets you access that value without selling.
- Homeowners with an Existing Mortgage. A reverse mortgage can pay off your current mortgage, eliminating your monthly payment and freeing up cash flow.
- People Who Want to Age in Place. If staying in your home is important to you, a reverse mortgage provides income without requiring you to move.
- Families Needing a Financial Safety Net. A reverse mortgage line of credit grows over time and can serve as an emergency fund or supplement to other income sources.
| Option | Reverse mortgage (HECM) | Home equity line of credit | Sell and downsize |
|---|---|---|---|
| Monthly payment | None while you live in the home; taxes, insurance and upkeep remain yours | Required, and can rise with rates | None, if the new home is bought outright |
| Qualifying | Age 62 or older, primary residence, financial assessment | Income and credit underwriting | Market and moving costs |
| Stay in your home | Yes | Yes | No |
| What heirs receive | Remaining equity after the loan is repaid; they can keep the home by paying the loan balance or 95 percent of the appraised value, whichever is less | Home less the outstanding line | Proceeds not spent |
| Effect on a living trust | Home can usually stay in the trust; the lender reviews the trust | No change | Trust should receive the new home |
Your Next Step
Start with a free consultation. If you would rather hear the whole estate and retirement picture first, our free in-person seminars in Phoenix and Tucson cover how this fits with the rest of a plan.
Who You Will Work With
RJP advisors review the decision with you and coordinate the referral. The loan itself is originated by the licensed reverse mortgage specialist we refer you to.
CEO | ChFC®, RMA®
RJP Estate Planning · ChFC® · RMA® · Series 6, 63, 65 · AZ Life & Health
Wealth Management Advisor, Fiduciary
RJP Estate Planning · Series 6, 63, 65 · Licensed Insurance Agent
Wealth Management Advisor, Fiduciary | Licensed Insurance Agent
RJP Estate Planning · CLU · Series 6, 63, 65 · Fiduciary · AZ Life & Health
Questions We Hear About Reverse Mortgages
- Does RJP originate reverse mortgage loans?
- No. RJP does not originate or service mortgage loans of any kind. We refer clients to licensed reverse mortgage specialists we trust and coordinate the process with your financial and estate plan.
- Can I lose my home with a reverse mortgage?
- You retain ownership of your home as long as you live in it, pay property taxes, maintain homeowner's insurance, and keep the home in reasonable condition. The loan only becomes due when you sell, move out, or pass away.
- How much can I borrow with a reverse mortgage?
- The amount depends on your age, the value of your home, current interest rates, and the FHA lending limit. Your reverse mortgage specialist will calculate the exact amount available to you.
- What happens to the reverse mortgage when I pass away?
- Your heirs have the option to repay the loan and keep the home, or sell the home and keep any remaining equity. The loan can never exceed the home's value, so heirs are never responsible for any shortfall.
- How does a reverse mortgage affect my estate plan?
- A reverse mortgage reduces the equity in your home over time. If you plan to leave the home to heirs, this should be factored into your estate plan. We coordinate with your estate planning team to make sure everything aligns.
Client Testimonials
Common Reverse Mortgages Questions
Answers to the questions Arizona families ask most about reverse mortgages.
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