It’s hard to ignore what can sound like a “too good to be true” advertisement for a reverse mortgage. Just imagine having the ability to use the equity in your current home today — without having to sell the property? You can use the money to pay bills, go on the trip of a lifetime or anything else you want to do. That’s exactly what a reverse mortgage can do for you, if you qualify.
To qualify for a reverse mortgage in New Jersey, you must:
- Be 62 years old or older
- Own the property and intend to live there
- Prove you understand the reverse mortgage process
- Can pay the taxes and insurance as well as keep current with home repairs
Don’t fall for scam artists trying to take your money and your house with reverse mortgage schemes! Contact Cherry Hill lawyer Joel R. Spivack for a free consultation to learn more about how a reverse mortgage may be right for you.
What are the two main benefits of a reverse mortgage for retirees?
- Extra Income: Most people live on fixed incomes after they retire. Unfortunately, especially in New Jersey, retirement savings isn’t always enough to fund one’s lifestyle. A reverse mortgage allows homeowners to draw funds out of the existing equity on the home. Essentially, you are taking a loan from yourself. When you consider that it would be your money now if you sold the house today, the “loan” is actually your money and you are using it when you need it.
- Deferred Repayment: A second important benefit of a reverse mortgage is that the loan doesn’t have to be paid back until the homeowner moves or dies. If they move, the loan needs to be paid back to complete the sale of the house. (Of course, if there is still equity in the house then there will be nothing to pay!) If the homeowner passes away, their heirs will have to refinance the mortgage or walk away from the real estate if the amount taken in the reverse mortgage puts the loan upside down.
If you are over age 62 and have equity in your home, a reverse mortgage may be a great idea to provide you with extra retirement income. However, reverse mortgages should never be taken without serious consideration of your overall financial situation. Talk to a knowledgeable real estate lawyer who will explain the process, advise you of your rights and help you make the best decision for you and your family.
Cherry Hill real estate lawyer Joel R. Spivack offers free consultations about reverse mortgages or any other real estate law needs. Contact him today to reserve your consultation with a knowledgeable South Jersey attorney today.