Reverse Mortgage Lenders in Illinois

lending-tree-national-mortgage-payment-monthly-mortgage-payment-tight-financingBy Peter Ricci

As Lending Tree found, monthly mortgage payments in Illinois average out at $974, which is pretty much what most other states pay. The most expensive, unsurprisingly, was the District of Columbia at $1, 641, and the least expensive was Nebraska at $711.

Lending Tree Survey of Illinois Mortgage Markets

Of course, the Lending Tree survey looked at much more than monthly mortgage payments, including:

  • The average credit score for mortgages in Illinois the last year was 753.
  • The average household income was $53, 234, which produced an average monthly household income of $4, 436.17.
  • Twenty-two percent of Illinois households’ income, Lending Tree found, go toward monthly mortgage payments.
  • Finally, the average loan amount in Illinois was 1, 402.91, the average interest rate was 3.54 percent, and the average LTV was 71 percent.

Mortgage Tips for Prospective Homebuyers

In addition to its study, Lending Tree also collected tips for prospective homebuyers from its network, which includes more than 250 lending institutions. They recommend:

  • Having ample documentation, even more documentation than your client may think necessary.
  • Asking the lender for written quotes for interest rates, closing costs and turn-around time.
  • Comparison shopping, and gauging the interest rates and closing costs that various lenders are willing to offer.
  • Researching all mortgage companies considered for the home purchase, and ensuring they are reputable.
  • Making sure the homebuyer has clean credit, meaning they don’t apply for any new forms of credit before the closing (coincidentally, this is the same advice that Larry Steinway of The Federal Savings Bank shared in our latest lending issue).

Back-up plan: reverse mortgages can help folks afford retirement, but are they a good offering for insurers with banks?(Life: Reverse Mortgages)(Statistical table): An article from: Best's Review
Book (A.M. Best Company, Inc.)

3 to 5 year minimum

2009-01-31 11:30:30 by RM_Guy

If you are considering a reverse mortgage, plan on staying in the home for at least 3 to 5 years. I do not advise a shorter time period. The longer you have a reverse mortgage the less expensive the closing costs become. This is because you spread the costs over a greater number of years, thus lowering the annual costs.
In this respect they are similar to a "forward" mortgage. You would not get a 30 year forward mortgage if you knew you were leaving the home in 2 years, too expensive.
There are no "points" in a reverse mortgage. HUD does not allow such deception in reverse mortgages

You might also like:

Vince Dooley on Reverse Mortgages
Vince Dooley on Reverse Mortgages

Fed Trims QE Pace to $75 Billion on Labor Market Outlook  — San Francisco Chronicle
The Fed's low interest rates have prompted consumers to buy homes or refinance existing mortgages, sparking a recovery in the housing market that was at the center of the financial crisis. Home Prices.

Related posts:

  • Avatar Robin What does my mother have to do to get the Reverse Mortgage Company to take ownership of her house?
    Feb 07, 2013 by Robin | Posted in Renting & Real Estate

    My widowed mother used up all the equity in her Illinois Reverse Mortgaged home. She moved into an assisted living facility due to disabilities and lack of money to pay real estate taxes, insurance, and to maintain her home, which put her RM into default. She’s living on Social Security and all of it goes to her facility. She sent a notarized, certified letter to the RM Company 3 months ago, saying that she cannot continue living in the house (for the reasons above). She has received nothing but form letters stating she has to pay insurance and taxes—no mention of her letter, or an envelope …

    • Unfortunately, the form letters are as you say, form letters, and automatic. Her case has to go through the system and process, although it leaves a bad taste in the mouth. Those form letters may come from one department, while another department works on the foreclosure. Eventually, your mom will have to sign a Deed in Lieu of Foreclosure, wherein she turns over the title and ownership of the house to the lender. Since FHA / HUD insures the loan, they will have to get involved, the home will have to get appraised, and HUD will have to approve the foreclosure before the lender can proceed. It is …