New Jersey Reverse Mortgage

Many seniors in New Jersey have chosen to take advantage of the New Jersey reverse mortgage option, a specialized loan type that allows retirees over the age of 62 to borrow money against the equity in their homes.  The borrowed money is provided to them as tax free income on a monthly basis or as a lump sum.

Reverse Mortgage New Jersey Information

These loans are unlike other mortgages in that they function in reverse.  The lender essentially buys your home equity from you and pays you for it each month, like a mortgage.  You get to receive the income and spend it as you wish.  It doesn’t matter whether you’re wealthy or not.  Reverse mortgages in New Jersey have helped many seniors get the money they need to live comfortably and securely.

There are no spending stipulations imposed on the funds you receive.  You can put the money toward anything you need, whether you’re paying for medical bills, living costs, or a nice vacation.  The money is all yours already, and the lender has no say in how you spend it.  If you want more reverse mortgage information, feel free to navigate around this site and others.

The method through which you choose to receive your money will vary depending on your financial needs and personal goals.  You can receive the funds in one of the following ways.

• Your lender can deliver a portion of the equity to you each month as a steady stream of income.
• Your lender can provide it to you all at once as soon as the loan is closed.
• You lender can set up a credit line for you tied directly to the equity in your home.

If you want, you can combine any of the above methods to receive your funds in the way that best fits with your financial goals.

As mentioned above, your lender purchases ownership of your home equity in a reverse mortgage.  This may concern some seniors who fear that their homes may be possessed by the lenders when the equity is gone.  This is not true.  Reverse mortgages don’t give lenders the right to take your home under any circumstances.  You will always own your home until the day you pass away or choose to move into a new residence.

You don’t have to pay back the loan, either.  The reverse mortgage amount only comes due when you move into a new home or pass away.  At this time, your heirs will inherit the debt along with the home and must pay it back.  But this can be done easily.  Your heirs can simply sell the home and turn the proceeds of the sale over to the lender.  Federal regulations guarantee that the maximum amount owed is never more than the value of the home at the time of the sale.  This ensures your financial independence and gives you peace of mind and assurance knowing that your heirs won’t see a penny of debt beyond what the home is worth.

IF this seems confusing, don’t worry.  There are many resources available to help you understand this loan option better.  The HUD’s Frequently Asked Questions page provides many details on this powerful financial tool.

New Jersey Reverse Mortgage Lenders

There are many mortgage lenders in the state of New Jersey.  Any of them is qualified to help you with your reverse mortgage, but take your time and make sure you find the best lender around.  Different lenders require you to pay different fees, and these fees can add up swiftly if you’re not careful.

Contact as many lenders as you can.  This is the best way to find out whether or not any one of them is giving you a good deal.  Ask each lender what mortgage rates they offer and what fees they charge.  Once you’ve identified the right lender, you’re ready to move forward.  Learn more about the application process by reading our reverse mortgage checklist.

About New Jersey

New Jersey is the second wealthiest state in the nation according to the United States Census Bureau and the most religiously and ethnically diverse state in the country.  The state is home to close to 1.5 million people over the age of 60.

Newark, Jersey City, Paterson, Elizabeth, Edison, Woodbridge, and Hamilton are among the largest and most popular cities in the state.  Many retirees have chosen to live in these areas and have used reverse mortgages to secure income for the best years of their lives.

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