New Jersey Reverse Mortgages

Reverse Mortgages in New Jersey

 If you have been looking for information on reverse mortgages in New Jersey, this post should give you some general information to consider. If you would like to get more information about your specific situation, feel free to contact us directly.

What is a reverse mortgage?

 A reverse mortgage is a specific kind of loan, designed for those over the age of 62 and retired, that enables them to secure an income by borrowing money against the equity in their homes. The loan can either be delivered to the borrower in the form of a monthly income, tax-free, or all at once in a lump sum. This option allows retirees to remain the owners of their home while incurring an income for their fun and free golden years!

Essentially what happens is much like a normal mortgage, only, as the name implies, in reverse! Instead of you paying the lender for your home, they buy your home equity from you and pay you it’s worth each month. This income is yours to spend as you wish; there are no spending restrictions or stipulations.

In order to qualify for a reverse mortgage, you must meet a few requirements. The candidate must be 62 years of age or above, and the home must be their primary residence. The candidate must also own at least 30% of their home’s equity. Finally, the candidate must not be planning for their heirs to inherit the home.

Another benefit of a reverse mortgage is that is does not come due until you sell your home or pass away. Some potential candidates might be apprehensive about the lender having ownership of the equity, but a reverse mortgage does not give the lender the right to possess your home under any circumstances. You are the owner of your home until you decide to sell or pass away, in which case the balance on the reverse mortgage is inherited by your children or heirs along with your estate. It must be repaid, but this can be simply a matter of your heirs selling the home and using the proceeds to pay the lender.

There are several options for the delivery of the reverse mortgage, and you may decide to combine one or more in order to meet your financial goals. The lender can provide the money in the form of an income, with monthly deposits, or it can be transferred all at the same time in a one-time payment at the closing. Additionally, if you are interested in setting up a new credit line, the lender is able to tie it directly to the equity they purchase from you.

Whether you are in need of income to be put towards living expenses, medical bills, or even that trip you’ve always wanted to take, a reverse mortgage may be a viable option for you!

If you are looking for a reverse mortgage in New Jersey, contact Advisors Mortgage Group today!