The Upsides of Reverse Mortgages in NJ
There’s been a great deal of talk today about a potential way to use ownership in your home to create money for your retirement. This particular financial agreement is known as reverse mortgages NJ. There is been a great deal of controversy over whether a reverse mortgage is the right thing to do or if it puts ownership of your home in jeopardy. Fortunately, there are a number of different misconceptions about a reverse mortgage and while it is not something that you should do lightly, there are a number of different benefits that come from these types of mortgages.
The first thing is that since it is a reverse mortgage, it is a loan. However, the great thing is that with a reverse mortgage, you will never owe more than the value of the home. For example, if your home is worth $180,000 you can borrow that amount of money against the value of your home. If housing values were to drop when your reverse mortgage loan comes due, if your home is only worth $140,000, that is the amount of money that you owe to a reverse mortgage company. If your home isn’t valued at $180,000 anymore, even though you receive that amount of money, you will only owe up to $140,000.
Another great thing about reverse mortgage income is that it is tax-free. Whether you receive it as a monthly stipend or you receive it in a lump sum, this money is not subject to any income tax or state taxes. This means that the money that you receive is money free and clear that you can spend as necessary.
As stated earlier, this is not something that you want to do without a great deal of thought. It is often best to speak with an expert who understands the reverse mortgage process to ensure if it’s right for you.
If you own your home and you want to use the equity of your home as a way to get money that is tax-free and that is extremely easy to qualify for, then a reverse mortgage may be your best option. There are many lending companies that offer these types of loans and it’s a simple matter of deciding whether it’s right for you and choosing a lending institution that offers the best and most favorable reverse mortgage rates.