What are the pros and cons of taking on a reverse mortgage in AZ? Whenever making any type of important decision a responsible person will want to look at what they will benefit from it as well as any negative effects that the decision could have on them. When it comes to getting a reverse mortgage this is obviously a very big decision to make, so it’s only natural that you would want to find out as much as possible about how it works. The good news is that reverse mortgages have a lot of wonderful benefits. Once you read through the pros and cons of reverse mortgages you will probably realize that in many circumstances this is exactly the kind of opportunity that you have been waiting for.
Want to learn more? Click here to get free information about a reverse mortgage in Arizona!
Pros Of Arizona Reverse Mortgages
The biggest pro of a reverse mortgage is that it takes away the burden of having to make a monthly payment to an Arizona mortgage company. Imagine how much easier your life would be if you didn’t have to take what is probably a significant portion of your income and use it to pay for your house each month. When you get a reverse mortgage making mortgage payments becomes a thing of the past forever.
Another major pro of reverse mortgages is that you still own your home, and you can live there for as long as you want to, provided you continue to live there as your primary residence and keep up with your taxes and insurance. Many people are under the misconception that when you get a reverse mortgage you no longer own the Arizona home. This is absolutely not true. It’s your home you can live in it as long as you want to and are able, and you can treat it just like you always have.
As you are nearing or even entering retirement one of the major adjustments that many people have to make is the decrease in their income. After working for most of your life it’s natural to get used to having a paycheck. But what happens when that paycheck goes away and you still have a mortgage payment to make?
With a reverse mortgage, the money you would normally have to commit to your house payment each month suddenly becomes money you can use for other purposes. On top of that, you can even draw money out of the equity of your home. That means that all of those years of making payments can suddenly pay off since you will be able to gain access to that money giving you the ability to have a higher quality of life. This is why the loan is appealing to many Arizona seniors who have most of their net worth tied up in the equity in their homes.
Understanding the Cons Of A Reverse Mortgage in AZ
The biggest drawback of a reverse mortgage is that it is a loan that will have to be paid back when you decide to leave your Arizona home. Your options here, or the options for your heirs, is to either pay off the amount owed or sell the home and pay off the amount that is owed. Once the money that is owed is paid off, any further proceeds from the sale of your home will go to you or your heirs. You will need to decide if this tradeoff is worth it for you.
Want to learn more? Click here to get free information about an Arizona reverse mortgage!
Who are the Top Reverse Lenders in Arizona?
| Lender | Loans | Total Principal Limit |
|---|---|---|
| WELLS FARGO | 6,076 | 1,213,358,415 |
| AMERICAN ADVISORS GROUP | 4,844 | 1,494,957,209 |
| SUN AMERICAN MORTGAGE CO | 4,476 | 1,157,900,482 |
| FINANCIAL FREEDOM SENIOR FUNDING CORP | 1,423 | 271,702,759 |
| FAIRWAY INDEPENDENT MORTGAGE CORPORATION | 1,398 | 592,280,928 |
| V.I.P. MORTGAGE INC. | 1,335 | 474,001,042 |
| BANK OF AMERICA | 1,285 | 287,862,700 |
| SUN VALLEY FINANCIAL OF UTAH INC | 1,215 | 258,231,444 |
| FINANCE OF AMERICA REVERSE LLC | 1,081 | 408,242,701 |
| ONE REVERSE MORTGAGE LLC | 1,057 | 253,874,872 |
| MUTUAL OF OMAHA MORTGAGE INC. | 968 | 434,452,859 |
| REVERSE MORTGAGE FUNDING LLC | 878 | 366,315,266 |
| HIGH TECH LENDING INC | 777 | 240,333,626 |
| SOUTH RIVER MORTGAGE LLC | 502 | 193,188,875 |
| PHH MORTGAGE CORPORATION | 478 | 193,571,275 |
| OPEN MORTGAGE LLC | 454 | 146,826,678 |
| LIBERTY HOME EQUITY SOLUTIONS INC | 450 | 109,173,331 |
| SEATTLE MORTGAGE COMPANY | 367 | 76,449,442 |
| LONGBRIDGE FINANCIAL LLC | 361 | 169,717,771 |
| COUNTRYWIDE BANK FSB | 349 | 74,689,980 |
Since 2012
| Lender | Loans | Total Principal Limit |
|---|---|---|
| AMERICAN ADVISORS GROUP | 4,431 | 1,411,770,838 |
| SUN AMERICAN MORTGAGE CO | 1,937 | 694,002,140 |
| FAIRWAY INDEPENDENT MORTGAGE CORPORATION | 1,349 | 581,564,981 |
| V.I.P. MORTGAGE INC. | 1,231 | 444,399,756 |
| FINANCE OF AMERICA REVERSE LLC | 1,079 | 407,852,701 |
| MUTUAL OF OMAHA MORTGAGE INC. | 968 | 434,452,859 |
| REVERSE MORTGAGE FUNDING LLC | 878 | 366,315,266 |
| HIGH TECH LENDING INC | 745 | 232,439,726 |
| ONE REVERSE MORTGAGE LLC | 721 | 183,051,772 |
| SOUTH RIVER MORTGAGE LLC | 502 | 193,188,875 |
Arizona Reverse Mortgage Interest Rates
Current Rates
| Date | Fixed Rate | Adjustable Rate |
|---|---|---|
| 2019-01-01 | 4.73% | 5.02% |
| 2019-02-01 | 4.85% | 5.00% |
| 2019-03-01 | 4.88% | 4.85% |
| 2019-04-01 | 4.82% | 4.72% |
| 2019-05-01 | 4.73% | 4.59% |
| 2019-06-01 | 4.73% | 4.68% |
| 2019-07-01 | 4.72% | 4.30% |
| 2019-08-01 | 4.73% | 4.14% |
| 2019-09-01 | 4.56% | 4.35% |
| 2019-10-01 | 4.68% | 4.12% |
| 2019-11-01 | 4.81% | 4.04% |
| 2019-12-01 | 4.56% | 3.97% |
| 2020-01-01 | 4.93% | 3.97% |
| 2020-02-01 | 4.35% | 3.91% |
| 2020-03-01 | NA | 3.88% |
| 2020-04-01 | 4.43% | 3.43% |
| 2020-05-01 | 4.39% | 3.26% |
| 2020-06-01 | 3.95% | 3.15% |
| 2020-07-01 | 3.74% | 3.04% |
| 2020-08-01 | 3.29% | 2.96% |
| 2020-09-01 | 3.41% | 2.94% |
| 2020-10-01 | 3.44% | 2.88% |
| 2020-11-01 | 3.41% | 2.85% |
| 2020-12-01 | 3.16% | 2.76% |
| 2021-01-01 | 3.26% | 2.70% |
| 2021-02-01 | 3.31% | 2.63% |
| 2021-03-01 | 3.25% | 2.55% |
| 2021-04-01 | 3.23% | 2.48% |
| 2021-05-01 | 3.26% | 2.35% |
| 2021-06-01 | 3.39% | 2.27% |
| 2021-07-01 | 3.49% | 2.20% |
| 2021-08-01 | 3.47% | 2.17% |
| 2021-09-01 | 3.45% | 2.16% |
| 2021-10-01 | 3.40% | 2.18% |
| 2021-11-01 | 3.35% | 2.17% |
| 2021-12-01 | 3.40% | 2.26% |
| 2022-01-01 | 3.48% | 2.32% |
| 2022-02-01 | 3.42% | 2.43% |
| 2022-03-01 | 3.43% | 2.78% |
| 2022-05-01 | 3.73% | 3.73% |
| 2022-04-01 | 3.56% | 3.13% |
| 2022-06-01 | 4.28% | 4.08% |
| 2022-07-01 | 4.91% | 4.50% |
| 2022-08-01 | 5.54% | 5.02% |
| 2022-09-01 | 5.41% | 5.50% |
| 2022-10-01 | 5.49% | 5.86% |
| 2022-11-01 | 6.10% | 6.48% |
| 2022-12-01 | 6.93% | 6.90% |
| 2023-01-01 | 6.68% | 7.05% |
| 2023-02-01 | 7.43% | 7.06% |
| 2023-03-01 | 6.31% | 7.24% |
| 2023-04-01 | 6.81% | 6.98% |
| 2023-05-01 | NA | 6.88% |
| 2023-06-01 | 6.56% | 7.16% |
| 2023-07-01 | NA | 7.52% |
| 2023-08-01 | NA | 7.60% |
| 2023-09-01 | 7.06% | 7.63% |
| 2023-10-01 | 6.43% | 7.69% |
| 2023-11-01 | 7.31% | 7.71% |
| 2023-12-01 | NA | 7.61% |
| 2024-01-01 | NA | 7.55% |
| 2024-02-01 | NA | 7.34% |
Historic Rates
| Date | Fixed Rate | Adjustable Rate |
|---|---|---|
| 2016-01-01 | 4.89% | 3.52% |
| 2016-02-01 | 4.87% | 3.72% |
| 2016-03-01 | 4.97% | 3.79% |
| 2016-04-01 | 5.01% | 3.99% |
| 2016-05-01 | 4.95% | 4.10% |
| 2016-06-01 | 4.89% | 4.15% |
| 2016-07-01 | 4.88% | 4.21% |
| 2016-08-01 | 4.98% | 4.25% |
| 2016-09-01 | 4.82% | 4.54% |
| 2016-10-01 | 4.94% | 4.57% |
| 2016-11-01 | 4.83% | 4.58% |
| 2016-12-01 | 4.86% | 4.69% |
| 2017-01-01 | 4.94% | 4.77% |
| 2017-02-01 | 4.90% | 4.67% |
| 2017-03-01 | 4.97% | 4.56% |
| 2017-04-01 | 5.03% | 4.50% |
| 2017-05-01 | 5.00% | 4.44% |
| 2017-06-01 | 4.98% | 4.41% |
| 2017-07-01 | 5.03% | 4.46% |
| 2017-08-01 | 4.98% | 4.49% |
| 2017-09-01 | 5.04% | 4.48% |
| 2017-10-01 | 4.97% | 4.51% |
| 2017-11-01 | 4.97% | 4.60% |
| 2017-12-01 | 4.99% | 4.63% |
| 2018-01-01 | 4.82% | 4.65% |
| 2018-02-01 | 4.81% | 4.62% |
| 2018-03-01 | 4.68% | 4.59% |
| 2018-04-01 | 4.69% | 4.72% |
| 2018-05-01 | 4.57% | 4.76% |
| 2018-06-01 | 4.63% | 4.72% |
| 2018-07-01 | 4.58% | 4.69% |
| 2018-08-01 | 4.64% | 4.73% |
| 2018-09-01 | 4.72% | 4.79% |
| 2018-10-01 | 4.63% | 4.74% |
| 2018-11-01 | 4.68% | 4.89% |
| 2018-12-01 | 4.75% | 4.99% |
Top Cities in Arizona by Total HECM Loans Originated
| Rank | City | Zip | Total |
|---|---|---|---|
| 1 | SUN CITY | 85351 | 1,887 |
| 2 | SUN CITY WEST | 85375 | 1,362 |
| 3 | SURPRISE | 85374 | 928 |
| 4 | SUN LAKES | 85248 | 799 |
| 5 | PRESCOTT VALLEY | 86314 | 733 |
| 6 | LAKE HAVASU CITY | 86406 | 725 |
| 7 | GREEN VALLEY | 85614 | 641 |
| 8 | SUN CITY | 85373 | 598 |
| 9 | MESA | 85205 | 554 |
| 10 | PRESCOTT | 86301 | 554 |
| 11 | LAKE HAVASU CITY | 86404 | 503 |
| 12 | MESA | 85206 | 496 |
| 13 | PHOENIX | 85032 | 483 |
| 14 | SCOTTSDALE | 85251 | 450 |
| 15 | PEORIA | 85382 | 433 |
| 16 | SCOTTSDALE | 85254 | 431 |
| 17 | PRESCOTT | 86305 | 402 |
| 18 | GLENDALE | 85308 | 390 |
| 19 | LAKE HAVASU CITY | 86403 | 389 |
| 20 | PEORIA | 85345 | 389 |
| 21 | GOODYEAR | 85395 | 378 |
| 22 | SCOTTSDALE | 85258 | 369 |
| 23 | MESA | 85208 | 365 |
| 24 | PHOENIX | 85022 | 360 |
| 25 | FOUNTAIN HILLS | 85268 | 353 |
| 26 | SCOTTSDALE | 85260 | 351 |
| 27 | PRESCOTT | 86303 | 349 |
| 28 | PAYSON | 85541 | 344 |
| 29 | TUCSON | 85710 | 339 |
| 30 | CHANDLER | 85249 | 339 |
Want to learn more? Click here to get free information about a reverse mortgage in Arizona!
Local HECM Housing Counselors
ADMINISTRATION OF RESOURCES AND CHOICES
3003 S. COUNTRY CLUB ROAD TUCSON SUITE 219, AZ 85713-4082
(520) 623-9383 ext 1002
http://ARC-AZ.ORG
CREDIT.ORG – MESA
4140 E BASELINE RD STE 101 MESA, AZ 85206-4413
(855) 736-7729
www.credit.org
FAMILY HOUSING RESOURCES
1700 N FT LOWELL RD SUITE 101
TUCSON, AZ 85719-2321
(520) 318-0993
TAKE CHARGE AMERICA
20620 N 19TH AVE PHOENIX, AZ 85027-3585
(623) 266-6149
www.housinghelp.takechargeamerica.org
WESTERN ARIZONA COUNCIL OF GOVERNMENTS (WACOG)
1235 S REDONDO CENTER DR YUMA, AZ 85365-2039
(928) 217-7123
http://www.wacog.com
WESTERN ARIZONA COUNCIL OF GOVERNMENTS HOPE – HECM
1235 S REDONDO CENTER DR YUMA, AZ 85365-2039
(928) 217-7161
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