A reverse mortgage is a complicated financial product available to seniors who are at least 62-years-old and own their own home with little or no mortgage balance. While there are few qualifications other than age and home ownership, reverse mortgages in NJ are not a good choice for every senior.
A home-equity conversion mortgage, or reverse mortgage, may be right for you if you need the money more than you need the equity in your home. If your adult children are well-established and do not plan to live in your home after you die, a reverse mortgage can help you get the cash you need now without sacrificing anything you would leave to your heirs.
You may be a good candidate for a reverse mortgage if you plan to live in your home for several more years. Reverse mortgages in NJ have fees and closing costs that make them impractical for homeowners who plan to sell their home in the next few years.
Homeowners who are in good health can get the most benefit from reverse mortgages. Your health is directly related to the length of time you will be able to live in your home. If you are healthy and don’t anticipate needing to move in with family or to an assisted living facility in the next ten years, a reverse mortgage may be a good option for you.
Though a reverse mortgage can add to your monthly income, you will still need to maintain your insurance and property taxes. A reverse mortgage is typically not a good way to save your home if you cannot afford to live in it because the lender can foreclose on your home if you fail to pay your insurance or taxes.
Before you can close a reverse mortgage loan, you must meet with a counselor who will explain all of the costs and benefits of reverse mortgages to help you determine if you are a good candidate for this kind of loan or if you should consider other options. Many seniors use the proceeds of reverse mortgages to travel or otherwise enjoy their later years without worrying about cash flow. Your lender and counselor can help you choose a payment plan that is right for your family.
