A reverse mortgage in Illinois is a great way to gain a steady and reliable source of income without sacrificing your financial independence. This type of loan simply taps into your own home equity and transforms it into money you can spend when you need it. If you’re “house rich” but “cash poor,” a reverse mortgage can provide the income you need to live the best years of your life well.
Reverse mortgages in Illinois are available only to seniors who own homes and have reached the age of 62. The terms and rates will vary depending on your own financial needs, your age, and the lender you choose to work with, but the basic structure is the same in all reverse mortgages. Your lender takes ownership of your home equity, whatever this amount may be, and makes payments to you as long as this reservoir of capital lasts.
The money you receive can be spent any way you please. Many seniors use these funds to pay for medical costs and retirement homes, but you can also simply use the money to pay for a nice vacation, college tuition for your grandkids, or basic living expenses. Anything goes. It’s all your own money. The reverse mortgage will eliminate your current mortgage, allowing you to live in your home debt free. For more details on how this works, read our reverse mortgage information fact sheet.
You can arrange to receive the funds from your lender in any number of ways. Select the method that works best for you and meets your long term financial goals.
As mentioned above, your lender will take control of the equity or value of your home. But your lender does not own your home and never will. A reverse mortgage does not transfer ownership of the home itself. This allows you to continue living in the home until the day you decide to move or you pass away.
You don’t have to pay back the reverse mortgage to your lender. Again, it’s your money, and it’s tied to the value of your home. Upon your death, whoever inherits the home will also inherit the debt of the reverse mortgage. This heir can sell the home and pay back the debt, or simply refinance the debt into a standard loan and make payments as with any other mortgage. The government regulates the repayment of reverse mortgages and prevents lenders from collecting more than what the home is worth at the time of collection, even if the debt you incurred was far higher.
The HUD maintains a Frequently Asked Questions list that will answer many of the questions you may have about reverse mortgages. Read it or contact one of our lenders to learn more about this financial opportunity.
The most difficult part of taking out a reverse mortgage is finding the best lender to work with. All lenders charge set fees and interest rates that deduct from the amount of equity you plan to apply to your reverse mortgage loan. These fees and rates differ from lender to lender. Compare at least four or five different lenders in your part of Illinois before you pick one to work with. Try to identify which one will charge you the lowest rates and fees. If you want more information about this and about applying for a reverse mortgage, read our reverse mortgage checklist.
Illinois has a broad economic base. It is an important transportation hub where one of the nation's largest international airports, O'Hare International Airport, is located. In addition, Illinois borders the Great Lakes on the northern end of the state.
The state is home to cities like Chicago,the most populous and demographically diverse midwestern city in the nation. Aurora, Rockford, Joliet, and Springfield are other large and significant cities in the state. Illinois is a wonderful place to retire and to enjoy a breath of fresh air, and a reverse mortgage can make this possible for many seniors who lack the spending money they need to get by.
Are you a mortgage or real estate professional?