What is a Reverse Mortgage and How Can It Help?

As you reach retirement age, you may find you have the time to do the things you always wanted to do. After retirement, you have the opportunity to take the trip you have dreamed of. You may also want to make a large purchase, such as a new car or other luxury item. However, your retirement savings may not allow for such expenditures. There is an option to help you do the things you worked hard all your life to accomplish. A reverse mortgage can be the option you need to give you the money to fulfill your retirement dreams.

A reverse mortgage is a type of loan based on the equity in your home. This loan gives you the equity value of your home to use as you wish. You can take this money in either one lump sum or in monthly installments to supplement your income. You can remain in your home with no monthly payment on the loan. The loan only comes due when you no longer reside in the home. At this time, the loan can be paid off, or your home will be sold to satisfy the loan. This allows you to use the money you built up in your home without adding extra costs during your retirement years.

To qualify for a reverse mortgage, you must be 62 years or older. You must also must own your home with no mortgage payment, or a small enough mortgage that it can be paid off with the reverse mortgage. You must also maintain primary residency in the home. There are no payments for this loan as long as you live in the home.

The money can be used for various purposes. It can be used to travel the world or visit family and friends. You could also use the money to make repairs or additions to your home. It can even be used to purchase an RV to see the country. It enables you to enjoy your retirement years with the equity you built up in your home. For more information about reverse mortgages, you can visit http://wwwnjreversemortgageguide.com.