If you’re over the age of 62, you may be facing issues with living expenses. In some cases, you may need to find extra income after your retirement. If you are able to, you may want to take a part time job. In fact, many people who retire like to work part time jobs as retirement can be a little boring for some. However, if you don’t want to go back to work to make ends meet, or perhaps you’re physically unable to hold down a job, there may be other alternatives for finding extra income. Something to consider are New Jersey reverse mortgages.
It’s likely that you have heard about these types of mortgages, but unfortunately, there’s a lot of misinformation regarding them. If you’re over the age of 62 and you own your home, here are some things to consider if you’re thinking about a reverse mortgage.
First of all, you may hear the term Home equity conversion mortgage and it’s important to know that this term is simply another name for a reverse mortgage. Whatever term is used, these types of mortgages will pay you for a certain amount of equity in your home. Much like you use to pay a mortgage company for your home, with a Reverse Mortgage option for New Jersey seniors, a mortgage company will pay you for a portion of the equity in your home.
The question you may have is how much equity can you unlock with a reverse mortgage. In most cases, you can access around 50% of the equity you have in your home at the age of 62. However, the amount you can borrow against increases if you are older. For example, if your home is valued at $300,000, at the age of 62, your can unlock around $148,000. If you were to get a reverse mortgage at the age of 72, you could unlock $164,000.
You also may be concerned about who has ownership of your home after a reverse mortgage has been paid to you. Even though you can’t get something for nothing, you won’t have to worry about the reverse mortgage company owning your home after they have paid you. As long as you live in the home, the mortgage company can’t take your home. If you decide to move, or you were to pass away and your house is sold, then the reverse mortgage will be payable from the proceeds of the sale. However, at no time will the bank take possession of your home.
If you’re interested in this type of mortgage, you might want to consider talking to a reverse mortgage expert for more information. If you’re simply looking for options and you want to know more about these mortgages, you can go online and visit NJ reverse mortgage lenders. This website can be very helpful in answering your questions about a reverse mortgage.
Home Equity Conversion Mortgage 