Indiana Reverse Mortgage Fact and Fiction

Understanding reverse mortgage facts and separating them from fiction is important if you want to be able to take advantage of the many benefits that this loan, also known as the Home Equity Conversion Mortgage (HECM), offers. There are a lot of people in IN who hear about the HECM program and never choose to even consider getting one because they are afraid to. They are afraid that they will end up losing their home. Or that they will be forced to leave by a certain date. Or that they will have to start making mortgage payments again. Or that they will end up costing their heirs any inheritance that they would receive when they pass away. Believe it or not, these are all fears that are generally unfounded. By learning the following reverse mortgage facts, you can gain a better understanding of what they are, and more importantly how getting one might benefit you.

Find out how a reverse mortgage loan can be part of a comfortable retirement. Click here for free information.

How It Works in Indiana

  1. With a reverse mortgage, there is no risk of losing your home, and you will never have to leave your home, provided that you pay your taxes and insurance (which you’re already doing) and that it’s your primary residence. You don’t have any monthly payments to worry about, so there’s no need to be concerned about possibly falling behind on payments. It’s your home, it remains your home, and you leave it only when you are ready to or must move (for example, for health reasons).
  2. With a reverse mortgage, you have the option of tapping into the equity in your home and using it however you see fit. That means you can cover expenses, go out to dinner more often, take a trip, fix up your home, or do anything else you want to. Does this cut into the equity in your home? Yes, it does. Will that reduces the amount of money you leave to your heirs when you pass away? Yes, but you can curtail the amount of the reduction by simply using the equity moderately. Just because you have access to the money doesn’t mean that you have to spend it.
  3. You must be at least 62 years of age or older in order to qualify for an Indiana reverse mortgage.
  4. You must either own your home outright or owe a small amount on your original mortgage in order to qualify for a reverse mortgage. You have to remember, a reverse mortgage is ultimately a loan, and like all loans, the lender needs to be able to make money on the deal in order for them to want to pursue it.
  5. You must meet with a counselor before being approved for a reverse mortgage. This step is done to ensure that you understand what a reverse mortgage is and what your obligations will be once you get one.
  6. You must also be able to demonstrate that you will be financially capable of caring for your home going forward. That means being able to pay for upkeep and repairs, as well as being able to pay any property taxes and insurance. The good news is that this generally isn’t a concern for most IN people.

Interested in an Indiana reverse mortgage? Click here for a free information kit!

The Top Indiana Reverse Mortgage Lenders

Lender Loans Total Principal Limit
WELLS FARGO 1,930 239,819,079
AMERICAN ADVISORS GROUP 1,629 240,940,150
ONE REVERSE MORTGAGE LLC 850 106,606,360
FINANCIAL FREEDOM SENIOR FUNDING CORP 740 80,386,278
FINANCE OF AMERICA REVERSE LLC 641 97,375,280
SENIORS EQUITY INCOME INC 617 65,062,694
METLIFE BANK NATIONAL ASSOCIATION 458 66,543,482
HOMEOWNERS MORTGAGE SERVICE INC 286 26,607,902
MORTGAGE NETWORK INC 228 31,683,470
LIBERTY HOME EQUITY SOLUTIONS INC 222 33,264,167
GMFS LLC 209 29,353,300
REVERSE MORTGAGE SOLUTIONS INC 189 29,767,182
UNITY MORTGAGE CORP 179 13,126,378
FIRST MIDWEST BANK 158 25,012,015
SENIOR INCOME REVERSE MORTGAGE 151 9,428,250
WORLD ALLIANCE FINANCIAL CORP. 150 20,554,340
CUSTOM MORTGAGE INC 149 13,666,103
MORTGAGE.SHOP LLC 144 14,990,600
ROYAL UNITED MORTGAGE LLC 141 21,117,900
GENERATION MORTGAGE COMPANY 115 15,071,860

Since 2012

Lender Loans Total Principal Limit
AMERICAN ADVISORS GROUP 1,481 223,144,950
ONE REVERSE MORTGAGE LLC 445 60,028,200
FINANCE OF AMERICA REVERSE LLC 341 61,253,300
LIBERTY HOME EQUITY SOLUTIONS INC 204 30,836,867
REVERSE MORTGAGE SOLUTIONS INC 189 29,767,182
GMFS LLC 119 16,789,000
SYNERGY ONE LENDING INC. 103 24,139,293
FAIRWAY INDEPENDENT MORTGAGE CORPORATION 99 20,465,830
PROFICIO MORTGAGE VENTURES LLC 95 13,431,880
FIRST MIDWEST BANK 93 16,262,015

Find out how a reverse mortgage loan can be part of a comfortable retirement. Click here for free information.

Reverse Mortgage Interest Rates in Indiana

Current Rates

Date Fixed Rate Adjustable Rate
2019-01-01 NA 5.09%
2019-02-01 5.03% 4.95%
2019-03-01 NA 5.05%
2019-04-01 NA 4.98%
2019-05-01 NA 5.02%
2019-06-01 4.68% 4.72%
2019-07-01 4.99% 4.67%
2019-08-01 5.00% 4.36%
2019-09-01 NA 4.43%
2019-10-01 NA 4.62%
2019-11-01 NA 4.46%
2019-12-01 NA 4.20%
2020-01-01 NA 4.22%
2020-02-01 NA 4.07%
2020-03-01 NA 4.15%
2020-04-01 NA 3.89%
2020-05-01 NA 3.70%
2020-06-01 3.68% 3.55%
2020-07-01 NA 3.54%
2020-08-01 3.93% 3.10%
2020-09-01 3.22% 3.18%
2020-10-01 3.06% 3.17%
2020-11-01 3.37% 2.97%
2020-12-01 3.25% 2.97%
2021-01-01 3.43% 2.84%
2021-02-01 3.20% 2.76%
2021-03-01 3.06% 2.50%
2021-04-01 3.93% 2.61%
2021-05-01 NA 2.48%
2021-06-01 3.18% 2.14%
2021-07-01 NA 2.06%
2021-08-01 3.12% 2.27%
2021-09-01 NA 2.49%
2021-10-01 NA 2.43%
2021-11-01 3.06% 2.35%

Historic Rates

Date Fixed Rate Adjustable Rate
2016-01-01 4.91% 3.52%
2016-02-01 5.02% 3.77%
2016-03-01 5.02% 3.87%
2016-04-01 5.00% 3.94%
2016-05-01 5.06% 4.03%
2016-06-01 4.85% 4.09%
2016-07-01 4.98% 4.18%
2016-08-01 4.92% 4.32%
2016-09-01 5.02% 4.39%
2016-10-01 4.87% 4.67%
2016-11-01 4.75% 4.64%
2016-12-01 5.00% 4.78%
2017-01-01 5.06% 4.82%
2017-02-01 4.96% 4.69%
2017-03-01 5.06% 4.59%
2017-04-01 5.06% 4.48%
2017-05-01 5.06% 4.46%
2017-06-01 4.90% 4.41%
2017-07-01 5.06% 4.34%
2017-08-01 4.98% 4.50%
2017-09-01 5.06% 4.49%
2017-10-01 5.06% 4.49%
2017-11-01 5.05% 4.64%
2017-12-01 5.04% 4.66%
2018-01-01 5.00% 4.71%
2018-02-01 4.76% 4.71%
2018-03-01 4.87% 4.60%
2018-04-01 4.70% 4.79%
2018-05-01 5.06% 4.69%
2018-06-01 4.75% 4.71%
2018-07-01 4.74% 4.65%
2018-08-01 4.73% 4.80%
2018-09-01 4.87% 4.71%
2018-10-01 NA 4.77%
2018-11-01 4.56% 4.64%
2018-12-01 4.75% 4.91%

Top Cities in Indiana by Total HECM Loans Originated

Rank City Zip Total
1 INDIANAPOLIS 46219 1,960
2 FORT WAYNE 46835 556
3 GARY 46407 476
4 SOUTH BEND 46628 448
5 EVANSVILLE 47712 316
6 ELKHART 46514 288
7 VALPARAISO 46383 205
8 MUNCIE 47303 197
9 BLOOMINGTON 47401 197
10 ANDERSON 46016 193
11 HAMMOND 46323 191
12 CROWN POINT 46307 176
13 MISHAWAKA 46544 161
14 MICHIGAN CITY 46360 145
15 LAFAYETTE 47904 144
16 GREENWOOD 46142 141
17 CARMEL 46032 131
18 KOKOMO 46902 130
19 NOBLESVILLE 46060 117
20 HOBART 46342 115
21 HIGHLAND 46322 106
22 LA PORTE 46350 106
23 MERRILLVILLE 46410 103
24 TERRE HAUTE 47804 92
25 COLUMBUS 47201 91
26 PORTAGE 46368 91
27 NEW ALBANY 47150 90
28 BROWNSBURG 46112 90
29 MARION 46952 90
30 RICHMOND 47374 87

HECM Housing Counselors

HOMESTEAD CS
671 N 36TH ST
LAFAYETTE, IN 47905-4475
(765) 423-1284
www.homesteadcs.org

CITY OF BLOOMINGTON – HOUSING AND NEIGHBORHOOD DEVELOPMENT (HAND)
401 N MORTON STREET
BLOOMINGTON, IN 47404-3729
(812) 349-3401
http://www.bloomington.in.gov/hand

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