Reverse Mortgages

Reverse Mortgages for Seniors

Thinking about a Reverse Mortgage for yourself or a loved one? Click here for a brief presentation on the benefits of reverse mortgages. When you're finished, close the presentation's browser window to return.

I have heard of Reverse Mortgages, but what exactly are they?

With a reverse mortgage, you do not have to repay the loan for as long as you live in the home, you will also never owe more than your home is worth and most importantly, payments from a reverse mortgage are guaranteed.

How can I receive my money?

There are several options available for receiving your equity:

• Lump Sum
• Monthly payments for as long as you live in your home
• Monthly payments for a fixed number of years
• A line of credit you can draw upon as you need
• Or a combination of these options that best meet your needs

How do I qualify?

To qualify, you and any co-borrower must be at least 62 years-of-age and own a home. This home must also be your primary residence. The best part of the program is there are no income or credit requirements to satisfy.

What types of reverse mortgage programs are available?

There are several reverse mortgage programs available, including the FHA-Insured “Home Equity Conversion Mortgage (HECM)”, and the Fannie Mae “Home Keeper”.

How much money can I qualify for?

How much money you can receive is based upon the age and number of borrowers, the value of the house, current interest rates, the maximum loan amount and the program you select. To receive your free, no obligation reverse mortgage analysis, please contact Pat Race or Joe Conforti at Oswego Community Bank at 630-554-3411. To get an estimate of how much money you could qualify for use our Reverse Mortgage Calculator. Close the calculator window when finshed to return.

Are there any costs associated with a reverse mortgage?

Closing costs and fees will be incurred when you obtain a reverse mortgage. Closing costs include the appraisal, title insurance, origination fee and recording fees. These items can be included in your loan so you do not have to pay cash for them. Your local reverse mortgage advisor will be happy to provide you with a Good Faith Estimate of Closing Costs when you meet.

When will my reverse mortgage become due and payable?

Your reverse mortgage must be repaid when you either sell your home or permanently leave the residence. In the event of death, your heirs will have the choice of keeping the house and repaying the loan with liquid assets or a conventional mortgage, or selling the house and using the proceeds to repay the loan.

How will this affect my taxes and Social Security?

Payments received from a reverse mortgage are considered to be a loan, not income. Therefore, the funds received are NOT subject to income tax and do not affect Social Security Benefits. Borrowers receiving Medicaid or SSI may not be affected if the funds from the reverse mortgage are spent in the month they are received. As always, we recommend you consult your own tax advisor for further details. To ensure that the reverse mortgage is appropriate for your situation, during the application process, reverse mortgage borrowers are required to receive FREE counseling from a third-party counseling agency. Your local mortgage advisor can refer you to their nearest location.

Sound like the right option for you or your loved ones. Then contact us or call us at 630-554-3411 to fiind out more.