A reverse mortgage is a loan arrangement in which Illinois homeowners 62 years of age or older can receive a lump sum payment or monthly distributions of money by turning the equity in their home into cash. The borrower is not required to reimburse the lender until they move out of the home for whatever reason. This type of mortgage was established in 1989, as a way for retirees on a fixed or limited income to enjoy the wealth that they have accumulated in the value of their home.
Applying for this type of loan is usually a way for seniors to receive more income when they have no other avenues available to them. It’s a solution for keeping older Americans in their homes and covering monthly expenses in the event that they find it hard to make ends meet.
Advantages and Disadvantages in IL
As you consider whether a reverse mortgage is right for you, here are some of the advantages and disadvantages that come with getting one. The advantages are relatively simple, you are not obligated to make monthly payments to pay back the loan, you can use the money however you wish, and it’s a good source of new income. Disadvantages, on the other hand, include the potentially high closing costs and additional fees, the expectation of continuing to pay all costs associated with the home, and it’s very possible the home will no longer be kept in the family.
Who Benefits From This Type of Loan?
Many retirees may find that taking out a reverse mortgage is the right financial decision. It can benefit anyone who doesn’t plan on moving from their home and is able to afford the ongoing expenses related to maintaining the home. These include any property taxes, payments on a homeowners policy, and applicable homeowners association fees. It can also be a smart way to pay off the remaining balance on an existing mortgage, since one of the main qualification requirements is that you must own the home or have very few mortgage payments outstanding.
In the case of the latter, the money you receive will be applied towards eliminating the balance on your current mortgage. The rest may be spent in whatever manner you see fit. Apply it towards paying off debt or covering monthly expenses and/or medical costs. The lender will make payments to the borrower in the form of a lump sum payment or monthly distributions, depending on the type of reverse mortgage you choose.
Who Does Not Benefit?
If you are unable to keep up with the payments to maintain your home in Illinois, then this may not be the right financial decision for you to make. You are not expected to reimburse the lender for as long as you own the home. But if you should be forced from the residence for a period of more than a year, the money will need to be reimbursed. That means you are responsible for paying it back or your estate will handle the matter in the event that you have passed away.
Biggest Reverse Mortgage Companies in IL
|Lender||Loans||Total Principal Limit|
|FINANCIAL FREEDOM SENIOR FUNDING CORP||1679||285392718|
|FIRST MIDWEST BANK||1194||229333887|
|AMERICAN ADVISORS GROUP||1192||215088260|
|SENIOR INCOME REVERSE MORTGAGE||1040||109244411|
|ONE REVERSE MORTGAGE LLC||983||159519100|
|INTEGRITY 1ST MORTGAGE INC.||846||141103200|
|FINANCE OF AMERICA REVERSE LLC||806||148909970|
|METLIFE BANK NATIONAL ASSOCIATION||768||151918003|
|INTEGRITY 1ST MORTGAGE INC||649||152800500|
|GSF MORTGAGE CORPORATION||560||107876601|
|SENIORS EQUITY INCOME INC||510||92282445|
|BANK OF AMERICA||443||104985400|
|GENWORTH FINANCIAL HM EQUITY ACCESS INC||375||75198400|
|FIRST REVERSE FINANCIAL SERVICES LLC||344||75190900|
|REVERSE MORTGAGE SOLUTIONS INC||327||71227001|
|LIBERTY HOME EQUITY SOLUTIONS INC||319||61069840|
|HARTLAND MORTGAGE CENTERS||313||61887660|
|MORTGAGE SERVICES III LLC||312||72432700|
|Lender||Loans||Total Principal Limit|
|AMERICAN ADVISORS GROUP||1027||188047810|
|INTEGRITY 1ST MORTGAGE INC.||586||109587000|
|ONE REVERSE MORTGAGE LLC||548||92433400|
|REVERSE MORTGAGE SOLUTIONS INC||311||68251551|
|LIBERTY HOME EQUITY SOLUTIONS INC||302||58055340|
|AMERICAN FIDELITY FINANCIAL SERVICES||213||46143900|
|STANDARD BANK & TRUST CO.||150||30684180|
|MORTGAGE SERVICES III LLC||145||33553900|
|FIRST MIDWEST BANK||122||24094400|
|PROFICIO MORTGAGE VENTURES LLC||104||18195864|
The Federal Housing Administration releases data on all HECM loans originated in Illinois each month. Using this information we’ve put together a list of average interest rates for IL. Although these exact rates may not be available, they will give you an idea of what others are paying.
|Date||Fixed Rate||Adjustable Rate|
Top Cities in IL by Reverse Mortgages Originated
One requirement of using the HECM program is speaking to a housing counselor to make sure that the loan is right for you. We’ve gathered some of the available counselors in Illinois that you may choose to speak with.
CONSUMER CREDIT COUNSELING SERVICES OF NORTHERN ILLINOIS
400 RUSSEL CT, WOODSTOCK IL 60098-2640
DUPAGE HOMEOWNERSHIP CENTER, INC. DBA H.O.M.E. DUPAGE
1600 E ROOSEVELT RD, WHEATON IL 60187-6808
GREENPATH FINANCIAL WELLNESS
5306 AVENUE OF THE CITIES SUITE A, MOLINE IL 61265-5069
HOUSING OPPORTUNITY DEVELOPMENT CORP.
2001 WAUKEGAN ROAD, TECHNY IL 60082-1000
MONEY MANAGEMENT INTERNATIONAL – CHICAGO DOWNTOWN
401 N MICHIGAN AVE STE 1273, CHICAGO IL 60611-4255
MORTGAGE EDUCATION FOUNDATION
7808 W. COLLEGE DR. LL SUITE 6, PALOS HEIGHTS IL 60463-1027
NEIGHBORHOOD HOUSING SERVICES OF CHICAGO
1279 N MILWAUKEE AVE SUITE 400, CHICAGO IL 60622-9360
NORTHWEST SIDE HOUSING CENTER
5233 WEST DIVERSEY AVENUE, CHICAGO IL 60639-1501
RESTORATION AMERICA, INC.
86 N WILLIAMS ST, CRYSTAL LAKE IL 60014-4444
SMART MONEY HOUSING AKA SMART WOMEN SMART MONEY
3510 WEST FRANKLIN BLVD, CHICAGO IL 60624-1316
WILL COUNTY CENTER FOR COMMUNITY CONCERNS
2455 GLENWOOD AVE, JOLIET IL 60435-5464