Reverse mortgages are popular for a reason. During the golden years you should be able to put your feet up and enjoy all that you’ve worked so hard to accomplish over the years. Many older home owners, however, are in a place they never thought they would be— reassessing their financial future.
If you’re a senior, 62 or older, having difficulty keeping up with bills or healthcare expenses, there is a way out of your dilemma. A reverse mortgage allows you to draw on the equity in your home without having to sell it so you can retire more comfortably. Instead of making monthly payments— you’ll receive a payment each month.
Created by the U.S. Department of Housing and Urban Development (HUD), this federally insured private loan is essentially the opposite, or "reverse" of a conventional mortgage where you would submit monthly payments. Instead, a reverse mortgage is a loan that pays you each month. A Reverse Mortgage loan is repaid only when you either sell your home or no longer live there as your principle residence. You retain ownership and title to your home. It's yours just as it was before, but now you can benefit from the equity that's been building in it for years.
When obtaining a reverse mortgage, it’s important to go with a trusted leader to ensure that every ‘t’ is crossed and every ‘i’ is dotted. With a history dating back to 1938, Jersey Mortgage Company has served NY, NJ, PA, FL and CT communities, helping thousands of people reach their retirement dreams.
The reverse mortgage specialists at Jersey Mortgage Company in NJ can help you tap into the equity that has accumulated in your home so you can use the funds. The proceeds can be used for any purpose and are available in a variety of payment methods including cash, a monthly payment, or an Equity Line. A Jersey Mortgage Company Reverse Mortgage loan gives you the peace of mind of a government guaranteed FHA backed loan where you will never owe more than your home is worth.
When you choose our mortgage company in NJ, you can feel secure knowing you are going with a trusted leader. We are one of only three lenders in New Jersey that has received a Lender Certificate of Appreciation from the State of New Jersey Dept. of Housing and Mortgage Finance. We are also members of the LendRIGHT program, a distinction that underscores a deep commitment to providing premium service. No matter how complex or challenging your circumstances may be, the New Jersey, Connecticut, Pennsylvania, Florida and New York reverse mortgage specialists at Jersey Mortgage Company will work with you to develop a program for your long-term future.
*As of August 5th, 2014 - A spouse that is not 62 years old yet can be included in the reverse mortgage.
When weighing the reverse mortgage pros and cons, it’s important to ask questions in order to fully understand the implications. Below are some of the common questions we are frequently asked.
A reverse mortgage is a unique type of home loan that lets you convert a portion of the equity in your home into cash. Unlike a traditional home equity loan or second mortgage, no repayment is required until you can no longer use the home as your principal residence.
To be eligible, borrowers must be at least 62 years old and live in their home as a primary residence. They must also own their home in full, or be able to pay the balance on their home with the proceeds of the reverse mortgage.
As long as you have a 1 to 4-family home, or a townhouse that you live in, your home qualifies for a reverse mortgage loan. A condominium may qualify, but must be evaluated and approved by the FHA.
You will not have to repay the loan for the entire time that you live in the home. You retain complete ownership of your home. After you’re gone, your heirs can refinance the loan into a traditional mortgage, sell the home and pocket the proceeds, or simply walk away from the home altogether.
Reverse mortgages are non-recourse loans, which means that you will never owe more than the house is worth. The only factors that determine your maximum borrowing amount are age, home value and the loan amount.
To ensure due diligence on your part, you must consult with a HUD approved counseling agency before applying for the loan to ensure that you are aware of the terms of the loan. To find HUD approved resources in your area, you can contact the Housing Counseling Clearinghouse at 1-800-569-4287
The approximate time to close is about 4 weeks