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.
Want to learn more? Click here to get free information about a reverse mortgage!
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
All Time
| Lender | Loans | Total Principal Limit |
| WELLS FARGO | 3,506 | 633,000,590 |
| AMERICAN ADVISORS GROUP | 2,516 | 512,272,430 |
| FINANCIAL FREEDOM SENIOR FUNDING CORP | 1,679 | 285,392,718 |
| FIRST MIDWEST BANK | 1,280 | 250,031,937 |
| ONE REVERSE MORTGAGE LLC | 1,119 | 189,381,700 |
| SENIOR INCOME REVERSE MORTGAGE | 1,040 | 109,244,411 |
| FINANCE OF AMERICA REVERSE LLC | 1,027 | 211,590,170 |
| INTEGRITY 1ST MORTGAGE INC. | 865 | 148,138,075 |
| METLIFE BANK NATIONAL ASSOCIATION | 768 | 151,918,003 |
| INTEGRITY 1ST MORTGAGE INC | 649 | 152,800,500 |
| SGB CORPORATION | 598 | 95,762,359 |
| GSF MORTGAGE CORPORATION | 560 | 107,876,601 |
| SENIORS EQUITY INCOME INC | 510 | 92,282,445 |
| BANK OF AMERICA | 443 | 104,985,400 |
| GENWORTH FINANCIAL HM EQUITY ACCESS INC | 375 | 75,198,400 |
| LIBERTY HOME EQUITY SOLUTIONS INC | 374 | 71,429,340 |
| FIRST REVERSE FINANCIAL SERVICES LLC | 344 | 75,190,900 |
| REVERSE MORTGAGE SOLUTIONS INC | 329 | 71,484,001 |
| MUTUAL OF OMAHA MORTGAGE INC. | 317 | 95,138,584 |
| HARTLAND MORTGAGE CENTERS | 313 | 61,887,660 |
Since 2012
| Lender | Loans | Total Principal Limit |
| AMERICAN ADVISORS GROUP | 2,351 | 485,231,980 |
| ONE REVERSE MORTGAGE LLC | 684 | 122,296,000 |
| INTEGRITY 1ST MORTGAGE INC. | 605 | 116,621,875 |
| LIBERTY HOME EQUITY SOLUTIONS INC | 357 | 68,414,840 |
| MUTUAL OF OMAHA MORTGAGE INC. | 317 | 95,138,584 |
| REVERSE MORTGAGE SOLUTIONS INC | 313 | 68,508,551 |
| FINANCE OF AMERICA REVERSE LLC | 311 | 79,854,700 |
| REVERSE MORTGAGE FUNDING LLC | 246 | 66,668,950 |
| AMERICAN FIDELITY FINANCIAL SERVICES | 213 | 46,143,900 |
| FIRST MIDWEST BANK | 208 | 44,792,450 |
Want to learn more? Click here to get free information about a reverse mortgage!
Interest Rates
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.
Current Rates
| Date | Fixed Rate | Adjustable Rate |
| 2019-01-01 | NA | 4.95% |
| 2019-02-01 | 5.12% | 5.09% |
| 2019-03-01 | 4.56% | 4.90% |
| 2019-04-01 | 5.18% | 4.93% |
| 2019-05-01 | 4.56% | 4.71% |
| 2019-06-01 | 4.97% | 4.79% |
| 2019-07-01 | 4.56% | 4.66% |
| 2019-08-01 | NA | 4.42% |
| 2019-09-01 | NA | 4.30% |
| 2019-10-01 | NA | 4.58% |
| 2019-11-01 | 4.25% | 4.34% |
| 2019-12-01 | NA | 4.27% |
| 2020-01-01 | 4.93% | 4.26% |
| 2020-02-01 | NA | 4.24% |
| 2020-03-01 | NA | 4.23% |
| 2020-04-01 | NA | 4.08% |
| 2020-05-01 | NA | 3.66% |
| 2020-06-01 | NA | 3.43% |
| 2020-07-01 | NA | 3.37% |
| 2020-08-01 | NA | 3.17% |
| 2020-09-01 | 3.18% | 3.34% |
| 2020-10-01 | 3.18% | 3.11% |
| 2020-11-01 | NA | 3.06% |
| 2020-12-01 | NA | 2.98% |
| 2021-01-01 | NA | 2.98% |
| 2021-02-01 | 2.99% | 2.88% |
| 2021-03-01 | 3.18% | 2.88% |
| 2021-04-01 | 2.99% | 2.67% |
| 2021-05-01 | 3.06% | 2.52% |
| 2021-06-01 | 3.06% | 2.40% |
| 2021-07-01 | 4.18% | 2.36% |
| 2021-08-01 | NA | 2.38% |
| 2021-09-01 | 3.31% | 2.40% |
| 2021-10-01 | NA | 2.24% |
| 2021-11-01 | 3.43% | 2.45% |
| 2021-12-01 | 3.62% | 2.42% |
| 2022-01-01 | 3.68% | 2.52% |
| 2022-02-01 | 3.37% | 2.59% |
| 2022-03-01 | 3.93% | 3.02% |
| 2022-05-01 | 3.06% | 3.84% |
| 2022-04-01 | NA | 3.29% |
| 2022-06-01 | 4.43% | 4.39% |
| 2022-07-01 | NA | 4.43% |
| 2022-08-01 | 5.18% | 5.26% |
| 2022-09-01 | NA | 5.68% |
| 2022-10-01 | NA | 6.38% |
| 2022-11-01 | NA | 6.85% |
| 2022-12-01 | NA | 7.18% |
| 2023-01-01 | NA | 7.27% |
| 2023-02-01 | NA | 7.22% |
| 2023-03-01 | NA | 7.37% |
| 2023-04-01 | NA | 7.50% |
| 2023-05-01 | NA | 7.19% |
| 2023-06-01 | NA | 7.29% |
| 2023-07-01 | NA | 7.71% |
| 2023-08-01 | NA | 7.76% |
| 2023-09-01 | NA | 7.82% |
| 2023-10-01 | NA | 7.90% |
| 2023-11-01 | 7.06% | 7.91% |
| 2023-12-01 | NA | 7.89% |
| 2024-01-01 | NA | 7.52% |
| 2024-02-01 | NA | 7.29% |
| 2024-03-01 | NA | 7.51% |
| 2024-04-01 | NA | 7.35% |
| 2024-05-01 | NA | 7.41% |
| 2024-06-01 | NA | 7.59% |
| 2024-07-01 | NA | 7.56% |
| 2024-08-01 | NA | 7.38% |
| 2024-09-01 | 7.93% | 6.80% |
Historic Rates
| Date | Fixed Rate | Adjustable Rate |
| 2016-01-01 | 5.05% | 3.60% |
| 2016-02-01 | 5.04% | 3.67% |
| 2016-03-01 | 4.96% | 3.85% |
| 2016-04-01 | 5.02% | 3.97% |
| 2016-05-01 | 4.97% | 3.97% |
| 2016-06-01 | 4.99% | 4.06% |
| 2016-07-01 | 4.95% | 4.20% |
| 2016-08-01 | 5.04% | 4.24% |
| 2016-09-01 | 5.02% | 4.46% |
| 2016-10-01 | 5.04% | 4.54% |
| 2016-11-01 | 5.00% | 4.63% |
| 2016-12-01 | 4.95% | 4.60% |
| 2017-01-01 | 5.06% | 4.77% |
| 2017-02-01 | 5.06% | 4.68% |
| 2017-03-01 | 4.89% | 4.61% |
| 2017-04-01 | 4.97% | 4.58% |
| 2017-05-01 | 5.06% | 4.47% |
| 2017-06-01 | 5.02% | 4.50% |
| 2017-07-01 | 5.06% | 4.49% |
| 2017-08-01 | 5.05% | 4.63% |
| 2017-09-01 | 5.06% | 4.52% |
| 2017-10-01 | 5.06% | 4.47% |
| 2017-11-01 | 5.02% | 4.61% |
| 2017-12-01 | 5.00% | 4.70% |
| 2018-01-01 | 5.00% | 4.73% |
| 2018-02-01 | 5.04% | 4.76% |
| 2018-03-01 | 5.06% | 4.66% |
| 2018-04-01 | 4.85% | 4.93% |
| 2018-05-01 | 4.70% | 4.96% |
| 2018-06-01 | 4.66% | 4.97% |
| 2018-07-01 | 4.31% | 4.84% |
| 2018-08-01 | 4.37% | 4.92% |
| 2018-09-01 | 4.31% | 4.86% |
| 2018-10-01 | 4.97% | 4.80% |
| 2018-11-01 | 4.56% | 4.83% |
| 2018-12-01 | 4.81% | 5.20% |
Top Cities in IL by Reverse Mortgages Originated
| Rank | City | Zip | Total |
| 1 | CHICAGO | 60628 | 1,137 |
| 2 | CHICAGO | 60620 | 1,099 |
| 3 | CHICAGO | 60619 | 790 |
| 4 | CHICAGO | 60643 | 768 |
| 5 | CHICAGO | 60617 | 766 |
| 6 | CHICAGO | 60636 | 577 |
| 7 | CHICAGO | 60651 | 425 |
| 8 | CHICAGO | 60644 | 424 |
| 9 | CHICAGO | 60621 | 373 |
| 10 | CHICAGO | 60624 | 328 |
| 11 | CHICAGO | 60638 | 282 |
| 12 | OAK LAWN | 60453 | 253 |
| 13 | CHICAGO | 60634 | 236 |
| 14 | MAYWOOD | 60153 | 229 |
| 15 | CHICAGO | 60649 | 224 |
| 16 | HUNTLEY | 60142 | 215 |
| 17 | CHICAGO | 60623 | 212 |
| 18 | CHICAGO | 60629 | 208 |
| 19 | DES PLAINES | 60016 | 206 |
| 20 | CHICAGO | 60609 | 202 |
| 21 | MOUNT PROSPECT | 60056 | 189 |
| 22 | LOMBARD | 60148 | 175 |
| 23 | ARLINGTON HEIGHTS | 60004 | 169 |
| 24 | ELMHURST | 60126 | 168 |
| 25 | CHICAGO | 60637 | 167 |
| 26 | SCHAUMBURG | 60193 | 161 |
| 27 | ORLAND PARK | 60462 | 158 |
| 28 | GLENVIEW | 60025 | 158 |
| 29 | CHICAGO | 60618 | 158 |
| 30 | PLAINFIELD | 60544 | 152 |
Housing Counselors
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
(815) 338-5757
http://www.illinoiscccs.org
DUPAGE HOMEOWNERSHIP CENTER, INC. DBA H.O.M.E. DUPAGE
1600 E ROOSEVELT RD, WHEATON IL 60187-6808
(630) 260-2500
http://www.dhoc.org/
GREENPATH FINANCIAL WELLNESS
5306 AVENUE OF THE CITIES SUITE A, MOLINE IL 61265-5069
(888) 860-4167
http://www.greenpath.com
HOUSING OPPORTUNITY DEVELOPMENT CORP.
2001 WAUKEGAN ROAD, TECHNY IL 60082-1000
(847) 564-2900
http://www.hodc.org
MONEY MANAGEMENT INTERNATIONAL – CHICAGO DOWNTOWN
401 N MICHIGAN AVE STE 1273, CHICAGO IL 60611-4255
(866) 232-9080
http://www.moneymanagement.org
MORTGAGE EDUCATION FOUNDATION
7808 W. COLLEGE DR. LL SUITE 6, PALOS HEIGHTS IL 60463-1027
(708) 761-6264
http://www.mortgageeducationfoundation.com
NEIGHBORHOOD HOUSING SERVICES OF CHICAGO
1279 N MILWAUKEE AVE SUITE 400, CHICAGO IL 60622-9360
(773) 329-4010
http://www.nhschicago.org
NORTHWEST SIDE HOUSING CENTER
5233 WEST DIVERSEY AVENUE, CHICAGO IL 60639-1501
(773) 283-3888
http://www.nwshc.org
RESTORATION AMERICA, INC.
86 N WILLIAMS ST, CRYSTAL LAKE IL 60014-4444
(847) 783-0232
http://www.restorationamerica.org
SMART MONEY HOUSING AKA SMART WOMEN SMART MONEY
3510 WEST FRANKLIN BLVD, CHICAGO IL 60624-1316
(773) 533-0243
http://www.smartmoneyhousing.org
WILL COUNTY CENTER FOR COMMUNITY CONCERNS
2455 GLENWOOD AVE, JOLIET IL 60435-5464
(815) 722-0722
https://www.wcccc.net
Want to learn more? Click here to get free information about a reverse mortgage!
