Reverse Home Loan: Things to Consider
You tried to keep money throughout your lifetime for your “golden years.” But with college tuition, weddings and the ever increasing property taxes, it had been rare to have much money left over to place into savings. So you are trying to get by on a security check and perhaps a pension, but it is getting harder and trickier to cover all your monthly expenses. You start to think, you must sell the family home you love and go on to a less expensive house or condominium. But when you take this serious step, why not think about what a reverse home loan can do for you?
Rather than paying the bank monthly to pay off your mortgage, the bank will actually pay you. When you have equity in your home (the amount it would sell for minus that which you still owe) a bank will mortgage you money that will not have to be paid back before you sell the house, pass or permanently transfer to another home. This is a reverse home loan.
You also don’t need a minimum income to qualify for a reverse mortgage in Illinois. You will find no monthly mortgage payments to make, so you don’t have to worry about losing your home through foreclosure. A lot of people prefer the money as a line of credit account to make use of whenever it’s needed. Other options include receiving the money as a group sum payment or as a regular monthly check. You need to be at the least 62 years of age and be the owner of the property in order to qualify for this mortgage from best reverse mortgage lenders in Illinois.
The cash you receive from the financial institution may be used for pretty much any purpose. It could be used to make needed repairs or home improvements, pay off debts, and pay property taxes and medical health insurance premiums, or even a vacation.