Frequently Asked Questions

Just what is a reverse mortgage?

A reverse mortgage is a loan that enables homeowners age 62 and over to tap the equity in their home without having to make a mortgage payments, move, or sell the home. It truly is a “mortgage in reverse”.

How Do I Know If I Can Get A Reverse Mortgage?

Generally speaking, if all owners of the property are at least 62 years of age, and the home is owned free and clear, or only a small balance remains on an existing mortgage, a reverse mortgage is possible.

How Do I Get The Money?

Since you are tapping your equity in the property, it’s up to you. The only requirement is that any outstanding lien (mortgage or other debt against the home) on the property must be paid in full at the time the reverse mortgage is done. You then can take the remaining reverse mortgage funds as a lump sum, a line of credit that actually grows in value each year, or as a set monthly amount. And the best part of all is, you can take any combination of these choices- some money as a lump sum to perhaps pay off bills, some as a line of credit to meet future needs, and some as a monthly amount to supplement your current income. You can even change your mind down the road- it’s your equity, it’s your choice.

What Can I Use The Money For?

Anything you want! Remember, the only requirement is that you pay off any liens against your home. After that, the funds from a reverse mortgage can be used for virtually any purpose- supplement your current income, pay off bills, home improvement, travel, the list is virtually endless.

What If My Children Have Questions About A Reverse Mortgage?

We encourage all interested parties to participate in the discussions regarding a reverse mortgage. Your children, after all, only want the best for you and are looking out for your needs. We even sometimes talk to friends, other relatives, spiritual advisors, anyone who is helping you make this decision. The more informed everyone is, the easier it is to see the many benefits and “safety nets” that are built into the reverse mortgage.

Why Don’t I Just Sell My Home?

In some cases, that may be the best answer. We will answer all your questions about a reverse mortgage and then let you decide. One important point to consider is if you sell your home, where will you live? And what costs are associated with the sale? Perhaps the answer is to sell the current property and purchase one that better meets your current needs. We can help you sift through your many options and will even recommend a real estate professional for further guidance if you request.

What Happens When I/We Pass Away?

Once you know longer live in the home as your primary residence, the loan is due. So if you move, go into a nursing home or assisted living facility on a permanent basis, or if all parties on the loan are deceased, the loan is due in full. Depending on your circumstances, you may want your children or other heirs to sell the home, or if they want to keep the property, they will need to pay off the reverse mortgage either with their own funds, or by obtaining a regular or “forward” mortgage. In any case, a reverse mortgage is a “Non Recourse” loan which means that no matter how much you owe at the time the loan is paid off, you or your heirs can never owe more than the value of the home at that time. Of course, if there are proceeds left when the home is sold, that money goes to either you or your heirs. This is a very safe product for both senior homeowners and their families.

How Do I Know How Much Money I Can Get?

We will help you determine that. The amount you are eligible for depends on the following factors: the ages of the youngest borrower, the value of the home as determined by an appraisal, the current interest rate. Or you may use our handy calculator at www.newreverse.com.

How Do I Start The Process?

Apply online or just call 630.712.2021 and ask to make an appointment. We will come to your home if you like, and discuss all the options available to you. If you prefer, you can email us at scott@newreverse.com and request more information. We will be available throughout the process to answer any questions and will even attend settlement with you if want us to. We are here to help you and our pledge is to make your reverse mortgage a pleasant experience.

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