Reverse Mortgages in the Northeast

From New England down to the nation’s capital, the Northeastern region of the United States packs in some of America’s richest history and most iconic attractions. The Northeast region consists of Maine, Vermont, New Hampshire, Massachusetts, Rhode Island, Connecticut, New York, New Jersey, Pennsylvania, Delaware, Maryland – and our nation’s capital, the District of Columbia.

With some of the nation’s oldest cities and a short distance from the Atlantic Ocean, the Northeast offers something for everyone. With this in mind, it’s no surprise that the Northeast accounts for nearly 20% of the nation’s total population. With nearly 65 million people calling the Northeast home1, the region is popular for Americans of all ages – and notably, retirees.

State/TerritoryTotal PopulationPercentage of population ages 65+
District of Columbia (DC)670,05012.4%
Maryland6,165,12915.9%
New Jersey9,267,13016.6%
New York19,835,91316.9%
Massachusetts6,984,72317.0%
Rhode Island1,095,61017.7%
Connecticut3,605,59717.7%
New Hampshire1,388,99218.7%
Pennsylvania12,964,05618.7%
Delaware1,003,38419.4%
Vermont645,57020.0%
Maine1,372,24721.2%
 Total = 64,998,401Average = 17.6%

Data: U.S. Census Bureau

With so much to offer, it’s no surprise that retirees are increasingly opting to “age in place” and stay in their homes in the Northeast. With more time on their hands, retirees have plenty to do across the region, whether it be right in their home state, a neighboring one, or even just a short road trip away. But it’s no secret that attractions and travel come with a price tag.

For retirees in the Northeast, retirement could mean adjusting to a decreased or fixed income. Fortunately, for many – there is an untapped source of wealth that can be tapped into to supplement this income, right in their homes.

Home Equity in the Northeast

Today’s senior homeowners now account for $10.6 trillion in home equity2 – the highest amount on record. What’s more, home equity represents more than two-thirds of total wealth for the average 65-year-old American couple3. And with home values in the Northeast being among the nation’s highest – tapping into this equity with a reverse mortgage could be a welcomed source of retirement cash flow. Also known as a Home Equity Conversion Mortgage (HECM), reverse mortgages allow homeowners ages 62 and older to convert a portion of their home’s equity into cash without having to sell the home or make monthly mortgage payments4. And here’s an added bonus – unlike traditional forward mortgages, where borrowers are required to begin making loan payments right away, reverse mortgage funds do not need to be repaid until after the final borrower vacates the home5.

Can I Get a Reverse Mortgage in My State?

For homeowners ages 62 and older who live in the Northeast region, the answer is YES. Reverse mortgages are available in Maine, Vermont, New Hampshire, Massachusetts, Rhode Island, Connecticut, New York, New Jersey, Pennsylvania, Delaware, Maryland, and the District of Columbia (DC).

How Much Money Can Retirees in the Northeast Get with a Reverse Mortgage?

Great question! There are several variables that are taken into account to determine how much home equity can be accessed. The “principal limit” or amount of proceeds available can depend on age, type of reverse mortgage loan, current interest rate, and of course – home value. For those who live in the Northeast, where home values are among the nation’s highest6, you may be surprised to see just how much equity is in your home.

Average Home Values: 2022
Pennsylvania $257,272
Delaware $340,910
Vermont $341,415
Connecticut $348,047
Maine $348,997
Maryland $394,125
Rhode Island $416,945
New Hampshire $418,382
New Jersey $446,566
Massachusetts $566,287
District of Columbia (DC) $708,135
New York $753,782
  Average = $445,071

Zillow Home Value Index, Data as of March 2022

How Retirees in the Northeast Can Use Reverse Mortgage Funds

Speaking of high home values – the Northeast is rooted in deep history, and plenty of unique, older homes. If your home is in need of some updates, repairs, or aging in place modifications, proceeds from a reverse mortgage can fund these projects and more. And that’s not the only way people are opting to use cash from a reverse mortgage. Some other common use cases we see include:

  • Paying everyday expenses, bills, credit card balances, and other debts. After all, everyone could use a little extra money every month!
  • Offsetting the surging price of healthcare; Fidelity estimates that the average 65-year-old couple may need approximately $300,000 saved (after tax) to cover healthcare expenses in retirement8.
  • Planning for the future by establishing a growing line of credit. This financial “safety net” can help ensure you’re prepared for unexpected expenses – and give you some financial peace-of-mind.
  • Helping loved ones with significant expenses. Whether it’s a family wedding, college tuition, or a down payment on a first home – the equity in your home can be used to help others.

So, if you find yourself wondering how you may use reverse mortgage proceeds, the answer is simple: any way you wish. The money is yours and can be used however you see fit.

In fact, this flexibility is just one factor of a reverse mortgage that makes the loan so appealing to retirees. As compared to a traditional Home Equity Line of Credit (HELOC), a reverse mortgage offers a comparable rate and greater stability. In fact, amidst the onset of the COVID-19 pandemic in 2020, several banks and lenders were forced to freeze or suspend HELOC applications and originations altogether. In a region affected particularly hard by the pandemic, the staying power of a reverse mortgage was especially notable.

With this in mind, it’s no surprise that reverse mortgages continue to gain traction with the senior population in the Northeast. Just see how many loans were closed in the region last year7:

Reverse Mortgages in 2021
Vermont22
Rhode Island95
Delaware100
Maine106
New Hampshire115
District of Columbia (DC)154
Connecticut228
Maryland522
Massachusetts567
New Jersey780
Pennsylvania874
New York1,116
 Total = 4,679

Data: U.S. Department of Housing and Urban Development

Funding Your Retirement in the Northeast

Whether you’re a city dweller, nature enthusiast, history buff, or beach bum – there are plenty of reasons to call the Northeast region home. And if you’re part of the nearly 90% of seniors over 65 who wish to age in place and stay in your current home as you grow older9, a reverse mortgage can help provide the financial means to do so.

At Longbridge Financial, we know that financial decisions are important ones. That’s why our goal is to give you peace of mind about your finances. Our team of reverse mortgage professionals can help you use hard-earned home equity to address the financial challenges that impact so many Americans who are in, or preparing for, retirement. And we’re committed to recommending the reverse mortgage program only after we make certain that it is right for you and meets your needs.

As an FHA approved lender, our loan program is insured by the U.S. Department of Housing and Urban Development (HUD). We’re also a proud member of the National Reverse Mortgage Lenders Association (NRMLA) and fully subscribe to its Code of Ethics. Not all lenders can say that.

Want to see what tapping into home equity can do for you? To learn more about a reverse mortgage, fill out the form on this page to receive a free info kit, or contact the Longbridge team of experts today.

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