Reverse mortgage can help in high-cost states
March 3rd, 2011
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- Planning to Move? Reverse Mortgage May not Be a Good Idea
- Retirement Independence
A new survey by AARP found that many senior citizens in New Jersey are struggling financially. AARP polled 400 New Jerseyans over 50 and found that about two-thirds said they don’t have enough resouces or information to stay healthy. Also, about 75 percent said they worry about Social Security and Medicare benefits. New Jersey is one of the most expensive states to live in, so benefits that are received don’t go as far as in states with lower costs of living.
Living on a small income
“It shouldn’t be surprising that there’s real palpable fear out there because seniors are suffering,” Douglas Johnston, legislative director for AARP-NJ, said in an article at NJ.com. “I frankly don’t know how they do it. The median amount Social Security recipients get per year is $10,400. How do you live on $10,400 anywhere, especially an expensive state like New Jersey?”
Can a reverse loan help?
The survey also found that 84 percent of people said they would prefer to receive long-term care at home or in an assisted-living facility, rather than at a nursing home. Whether you remain at home or move to an assisted-living facility, you’ll need enough cash to last through your golden years. If you live in a high-cost state like New Jersey, you may be wondering if a reverse loan can help supplement your retirement income.
Reverse mortgage guidelines
A reverse mortgage could allow you to convert some home equity into cash. You must be at least 62 years old and own a home. You might qualify for a reverse loan even if you’re still paying off a mortgage loan. A reverse mortgage counselor can discuss all the reverse mortgage guidelines and help determine if borrowing money is prudent.