How to Shop for Reverse Mortgages in Illinois ? - Z Reverse Mortgage

In the recent times reverse mortgages are
becoming a more preferred option for
supplementary income among senior citizens.
According to a statement issued by Peter Bell
who is the president of NRMLA or the National
Reverse Mortgage Lenders Association, around
911,314 reverse mortgages have been taken
since the programs inception and this number is
expected to go up to 1 million in the first half
of this year.

For all those who do not know what a reverse mortgage is, you may
have heard the term Home Equity Conversion Mortgage (HECM) loan
and this is a way to get cash for seniors in exchange for a portion of
equity of their home. It is seriously a good source of supplementary
income as mostly reverse mortgages are tax free and also one is not
expected to make monthly mortgage payments. Another interesting
thing about this mortgage is that depending on the need one can opt
for either taking the loan proceeds as a lump sum or as monthly
payments and even as a line of credit.
If you are wondering how and when you have to repay the loan, well it
is only due when the home owner permanently leaves the residence or
passes.

A Reverse Mortgage may sound like a great option you must really
careful when choosing the reverse mortgage lender. A best way to
avoid getting duped is to ask a lot of questions. Below are some things
to be aware of when shopping for a reverse mortgage.
Avoid lenders that tell you to invest
the proceeds from this loan
proceeds into another investment
vehicle such as an annuity.
Avoid lenders advertising reverse
mortgage loans as “no cost or no fee”
loan.

Avoid lenders who are charging a fee that is as high as the amount
of proceeds you would receive from the loan.
Avoid lenders advertising reverse mortgage loans as “government
loan”, “government benefit” or a lender that states their loan is
“HUD or AARP approved”.

‣ An informative articles about
Reverse Mortgages – cbsnews.com,
by Ilyce Glink, 1/11/16
http://www.cbsnews.com/media/10
-things-you-need-to-know
about-reverse-mortgages/
‣ It is always advisable to consult a
good financial advisor or
appropriate government agencies to
get an unbiased opinion about
reverse mortgages.

‣ Certain benefits of reverse mortgages are only applicable if it is
the primary residence of the borrower who continues to pay
required property taxes, homeowners insurance and maintain the
home according to Federal Housing Administration requirements.
‣ Some common mistakes that can happen when Seeking a Reverse
Mortgage – houselogic.com, by Barbara Eisner Bayer, 11/4/13,