Who Would Benefit From a Reverse Mortgage in IL?

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 993 200,590,670
INTEGRITY 1ST MORTGAGE INC. 864 147,544,075
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
HARTLAND MORTGAGE CENTERS 313 61,887,660
MORTGAGE SERVICES III LLC 312 72,432,700

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. 604 116,027,875
LIBERTY HOME EQUITY SOLUTIONS INC 357 68,414,840
REVERSE MORTGAGE SOLUTIONS INC 313 68,508,551
FINANCE OF AMERICA REVERSE LLC 277 68,855,200
MUTUAL OF OMAHA MORTGAGE INC. 269 79,956,084
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%

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 1,134
2 CHICAGO 60620 1,097
3 CHICAGO 60619 788
4 CHICAGO 60617 766
5 CHICAGO 60643 765
6 CHICAGO 60636 577
7 CHICAGO 60644 424
8 CHICAGO 60651 424
9 CHICAGO 60621 373
10 CHICAGO 60624 328
11 CHICAGO 60638 279
12 OAK LAWN 60453 252
13 CHICAGO 60634 235
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 201
21 MOUNT PROSPECT 60056 189
22 LOMBARD 60148 175
23 ELMHURST 60126 168
24 ARLINGTON HEIGHTS 60004 168
25 CHICAGO 60637 167
26 SCHAUMBURG 60193 161
27 CHICAGO 60618 158
28 GLENVIEW 60025 157
29 ORLAND PARK 60462 154
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!