I get the question a lot from prospective borrowers, “What are the disadvantages of a Reverse Mortgage?” It is a very easy question to answer because there actually are a few.
- Reverse Mortgages are Home Equity Loans and they will reduce the amount of equity you have in your home.
If you are in the market for a Reverse Mortgage, you probably are not trying to preserve long term equity, so this may not be a specific concern.
- Reverse Mortgages are currently insured by the Federal Housing Authority (FHA) so the collateral for the loan, your home, must meet the HUD minimum property guidelines.
This is particularly difficult in some instances such as with mobile homes and condominiums.
- Reverse Mortgages are difficult to obtain if your loan closes with your property in a trust.
Considering a reverse mortgage in Arizona? 602-456-0009 Your home’s value may be the key. Many home owners are faced with the reality of the current real estate market while planning for a reverse mortgage in Arizona. Most Arizona markets are still declining and Arizona home values have dropped 15.7% in the last year alone, according to Zillow Real Estate Market Reports. While there are some bright spots, those seem to be less affected by the downturn but none of them are seeing any gains yet, like we see in other parts of the country. This is a volatile market and all of the reasons you bought a home in Arizona or Florida for that matter are the reasons for the volatility. When times are good, they are really good in these desirable, vacation/retirement areas. When the pendulum swings back the other way, however, we can see sharp, protracted declines in value, a mirror image of the good times. This is a great time to buy and a good case can be made for borrowing against your home’s value at current market prices as well. When you borrow in lean times, like today, it’s hard to over leverage your home and when prices stabilize, you will have more equity for future use. Dont’ forget, future equity is a good thing and it can be tapped into at a later date when you refinance your reverse mortgage. If you are out bargain hunting, try calculating a reverse mortgage purchase scenario, or give me a call and I’ll explain to you how to take advantage of this downturn in market prices.
Reverse Mortgages, for some, are not a one time proposition. There are many reasons why most consumers think a reverse mortgage is a one time, one shot deal. They are advertised and sold as a lifetime loan with illustrations that amortize out to age 100 and they use terms like “no payments for life” and while this is all true, it does not necessarily mean the home owners will have or should have the same reverse mortgage for the rest of their lifetimes. It makes a lot of sense, when planning for retirement, not to have a mortgage payment to worry about, so most of my customers use the bulk of their proceeds from a reverse mortgage to pay off an existing mortgage on their home. This benefit could be enough for the reverse mortgage to make sense to some. The amount of the mortgage payment they were making no longer comes out of the bottom line every month, leaving them with extra spendable income. If they don’t spend the extra money, it adds up to thousands of dollars in savings every year. This is why reverse mortgages are becoming so widely accepted.
Recent Posts
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- Reverse Mortgages for Free and Clear Homes
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- 4.99% Fixed Rate Reverse Mortgage Prevails
- FHA Reverse Mortgage Fees Change Again
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- Dumbing Down Loan Officers
- Reverse Mortgage Counselors Fail
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Our Reverse Mortgage Products
FHA Insured Home Equity Conversion Mortgages
HECM FIXED 4.00
HECM FIXED 4.25
HECM FIXED 4.50
HECM FIXED 4.75
HECM FIXED 4.99
HECM FIXED 5.49
HECM FIXED 5.56
HECM FIXED 5.68
HECM FIXED 5.81
HECM FIXED 5.99
HECM LIBOR 1.75
HECM LIBOR 2.00
HECM LIBOR 2.25
HECM LIBOR 2.50
HECM SAVER LIBOR AND FIXED
Welcome!
You have found a Reverse Mortgage Specialist with knowledge, experience and integrity. Michael Manfredi is a fully licensed, bonded and HUD approved Reverse Mortgage Lender. He represents several national Reverse Mortgage Banks and has over ten years experience in Reverse Mortgage lending.Michael Manfredi
(602) 456-0009
NMLS License 150754Cities We Have Serviced
Apache Junction, Arizona
Anaheim, California
Avondale, Arizona
Buckeye, Arizona
Bullhead City, Arizona
Camp Verde, Arizona
Casa Grande, Arizona
Carefree, Arizona
Cave Creek, Arizona
Chandler, Arizona
Chino Valley, Arizona
Claypool, Arizona
Cornville, Arizona
Cottonwood, Arizona
Fountain Hills, Arizona
Flagstaff, Arizona
Gilbert, Arizona
Glendale, Arizona
Globe, Arizona
Gold Canyon, Arizona
Goodyear, Arizona
Green Valley, Arizona
Lake Havasu, Arizona
Litchfield Park, Arizona
Mesa, Arizona
Miami, Arizona
New River, AZ
Paradise Valley, Arizona
Payson, Arizona
Peoria, Arizona
Phoenix, Arizona
Pinetop-Lakeside, Arizona
Prescott Valley, Arizona
Safford, Arizona
Scottsdale, Arizona
Sedona, Arizona
Show Low, Arizona
Snowflake-Taylor, Arizona
Sun City, Arizona
Sun Lakes, Arizona
Surprise, Arizona
Tempe, Arizona
The Villages, Florida
Tonopah, Arizona
Tucson, Arizona
Wickenburg, Arizona
Yuma, Arizona

