For seniors who are approaching retirement age or are already over the age of 62, an Arizona HECM reverse mortgage loan is a financial option that they may want to consider. What is an Arizona HECM Reverse Mortgage loan? An Arizona Reverse Mortgage loan is a financial instrument that allows seniors homeowners over the age of 62 to receive tax-free income from the equity in their home. To help seniors to understand what is an Arizona HECM Reverse Mortgage loan, this article will cover the basic premise of how a reverse mortgage works.
What is an Arizona HECM Reverse Mortgage Loan? The Basics
The basic requirements for being eligible for a HECM Reverse Mortgage loan are the following:
The borrowers must be at least 62 years of age, in the case of joint ownership; both parties must be at least 62 years old in order to have both names on the title.
There must be enough equity in the home to repay the loan.
There are no payments due on the loan until both homeowners die or the home is sold, or if the homeowners choose to move away.
Borrowers can receive the money in a lump sum or receive monthly payments.
The income received from a reverse mortgage is tax-free and does not affect social security benefits.
The loan is paid back by the selling of the home after the owners die; alternatively, the heirs of the estate have the option of paying back the loan and keeping the home.
Is a Arizona HECM Reverse Mortgage Loan Right for Me
We have just given a brief answer to the question, what is an Arizona HECM Reverse Mortgage loan; whether or not a Reverse Mortgage loan is right for couple or an individual is a question that they will have to answer for themselves. Seniors should evaluate their financial goals, talk with their heirs, and consult a Reverse Mortgage specialist before deciding on whether or not to take out a Reverse Mortgage.
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