Reverse Mortgage in Burlington County NJ: A Senior Homeowner Guide
A reverse mortgage is a special type of home loan available to homeowners age 62 or older that allows you to convert a portion of your home's equity into tax-free cash without selling your home or taking on monthly mortgage payments.
Verify my mortgage eligibility (Feb 22nd, 2026)Unlike traditional mortgages, where you pay the lender each month, a reverse mortgage pays you, either in monthly installments, a line of credit, a lump sum, or a combination. The loan is repaid only when the last borrower permanently leaves the home, sells the property, or passes away.
Reverse mortgages can be powerful tools for retirement planning, especially in markets like Burlington County, New Jersey, where home values have grown and many seniors are seeking ways to supplement retirement income without downsizing.
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Why Consider a Reverse Mortgage in Burlington County NJ?
Homeownership remains a central part of financial security for many seniors in Burlington County. Whether you live in Mount Laurel, Moorestown, Marlton, Willingboro, Cinnaminson, or Bordentown, a reverse mortgage can help you:
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Cover medical expenses or long-term care costs
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Eliminate existing mortgage payments
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Improve cash flow during retirement
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Supplement everyday living expenses
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Make home renovations or accessibility improvements
Burlington County's proximity to both Philadelphia and New York offers lifestyle benefits but also higher living costs. A reverse mortgage can help bridge income gaps without forcing you to leave the community you love.
Verify my mortgage eligibility (Feb 22nd, 2026)Who Is Eligible for a Reverse Mortgage?
To qualify for a reverse mortgage in Burlington County NJ, you must:
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Be 62 years or older
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Own your home - either fully paid off or with a low remaining balance
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Live in the home as your primary residence
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Maintain the property and pay property taxes, insurance, and HOA fees
You can use a reverse mortgage on single-family homes, FHA-approved condos, and even some manufactured homes that meet FHA standards.
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How a Reverse Mortgage Works
With a reverse mortgage, the loan balance grows over time as interest and fees accrue. You do not make monthly payments on the loan balance. Instead:
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You choose how to receive your funds
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The loan becomes due when you permanently move out of the home, sell it, or pass away
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Importantly, reverse mortgages are non-recourse loans. If your loan balance ends up exceeding the home's value when it's sold, neither you nor your heirs are responsible for the difference. The lender is paid from the sale proceeds up to the home's value.
Types of Reverse Mortgage Payment Options
You can tailor how you receive funds from a reverse mortgage:
Lump Sum
You receive all available funds upfront. This option can be useful for large expenses, like debt payoff, home repairs, or medical bills.
Verify my mortgage eligibility (Feb 22nd, 2026)Tenure Payments
You receive equal monthly payments for as long as at least one borrower lives in the home.
Term Payments
You receive fixed monthly payments for a set period.
Line of Credit
You can draw funds as needed. This option gives flexibility and can help funds last longer.
Verify my mortgage eligibility (Feb 22nd, 2026)Many homeowners choose a combination - for example, a smaller lump sum to pay off an existing mortgage plus a line of credit for future needs.
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Costs and Fees
Like any financial product, reverse mortgages come with costs. These may include:
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Origination fees
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Mortgage insurance premiums (for Home Equity Conversion Mortgages, or HECMs)
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Closing costs
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Servicing fees
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Interest
Most reverse mortgages use adjustable or fixed interest rates based on the loan type and your financial goals.
Verify my mortgage eligibility (Feb 22nd, 2026)It's essential to understand the total cost over time and how interest impacts your remaining home equity. A qualified reverse mortgage counselor can help you understand these details before moving forward.
Frequently Asked Questions
Will I lose my home?
No. As long as you live in your home, pay property taxes, insurance, and maintain the property, you retain ownership.
Are reverse mortgage funds taxable?
Generally, reverse mortgage funds are not taxable income because they are loan proceeds, not earnings. Consult a tax professional for your specific situation.
Verify my mortgage eligibility (Feb 22nd, 2026)What happens to my heirs?
Heirs can keep the home if they repay the loan balance (typically by selling the home) or give the property to the lender. Because of non-recourse protections, heirs will never owe more than the home's value.
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A reverse mortgage in Burlington County NJ can be a valuable solution for homeowners 62 and older who want to boost retirement income, stay in their home, and use their equity wisely. However, this is a big decision that requires careful planning, trusted guidance, and comparison with other financial options.
To get started, speak with a qualified reverse mortgage counselor and a local lender who understands Burlington County real estate and senior financial needs. With the right information, you can determine if a reverse mortgage aligns with your retirement and legacy goals.
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