Mundelein, IL, -Fisher Mortgage Company, one of Illinois’ fastest growing mortgage companies, announces the availability of reverse mortgages for seniors considering giving up their homes to increase their income. “At a time when retirees expect to be enjoying the fruits of a lifetime of work, many feel the rug has been pulled out from underneath them because of the financial crisis and rising health care costs,’ states Julia Matthews, loan officer and ten year veteran of the industry. ‘But seniors don’t necessarily have to sell their homes to cover monthly bills, medical expenses, home repair, estate planning, or even travel. If you are 62 or older and own your home, regardless of income, you can qualify for a reverse mortgage.”
How it works. A reverse mortgage works the opposite of a traditional mortgage. Instead of making monthly payments to the bank toward home ownership, the bank pays the homeowner in exchange for equity in the home. The most common, the Home Equity Conversion Mortgage (HECM), is federally insured, backed by HUD, and tightly regulated to allow home owners to use their home equity to increase their personal cash flow without fear of losing their homes. Reverse mortgages offer flexibility to accommodate the needs of the borrower. Loan proceeds can be taken monthly as tax-free income, line of credit, lump sum, or any combination of the three. At the end of the loan, the remaining value belongs to the homeowner or with the heirs of the estate.
Cost advantage. Another benefit of the reverse mortgage is that interest rates on the money paid to the homeowner are generally lower than interest rates on traditional home equity lines of credit. Even the fees incurred in the process can be offset by loan proceeds because they are added to the balance for repayment at the end of the loan. Repayment is due when the last remaining borrower passes away or no longer occupies the property as primary residence.
Addressing recent real estate fluctuations Matthews adds, “Debt limit is a big advantage. In today's volatile housing market, you won't find yourself upside down at the end of the loan. Reverse mortgage holders will never have to repay more than their home is worth.”
Is it for you? Before deciding on a reverse mortgage, compare it to selling your home and moving into another home or rental. Ask yourself these questions: What’s your home worth on the market? What’s the cost of moving to a new home? What can you earn safely on any remaining money? What would alternatives like assisted living cost? Fisher Mortgage offers pre-mortgage counseling at no cost to help seniors sort through their options. For more information on reverse mortgages and how to weigh the benefits against other options, contact Julia Matthews at 847.837.5302 or email: julz38@comcast.net.
About Fisher Mortgage
Fisher Mortgage Company, Inc. is a privately held Illinois-based mortgage brokerage dedicated to saving its clients the most money possible through the refinancing or purchasing of a home. Named one of America’s 500 fastest growing companies by INC. Magazine, Fisher Mortgage continues to build on its reputation on the highest standards of customer service and integrity. It has received the Better Business Bureau’s Complaint-Free Award every year since 2002. Fisher Mortgage is licensed in Illinois.
