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About Reverse Mortgages
Income for seniors is one of the main advantages of a reverse mortgage loan. The other is how the homeowner never gives up the rights to the home and can live in the home for the lifetime of the loan. The New Jersey real estate market conditions never affect the loan and once the loan is closed the lender is at risk for any depreciation that may occur. The lender makes the payments to the homeowner. This is why the term reverse is used to describe this type of loan.
Consumer Safeguards
Mandated laws have been created in both New Jersey and the federal government so seniors who purchase a reverse mortgage loan never lose their home. These mandated laws can help reassure seniors that a reverse mortgage loan is safe and a real option. The Home Equity Conversion Mortgage (HECM) is safeguarded by the government. For other reverse mortgage loan products in New Jersey like those from Fannie Mae the government has defined a set of best practices.
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