Best Price Guarantee
Featured Properties
Contact Us
Home

Mortgage Resource

For Sale By Owners

Featured Tools

Loan Info

Company Info

Other Services

Client News

Reverse Mortgages

What is a reverse mortgage?

A reverse mortgage is a home loan (used for any purpose) where seniors, 62 and older, can access the equity (cash) built up in their home.

There are several different reverse mortgage programs. Fannie Mae Home Keeper®, Jumbo Cash-Out loan, and the HUD-insured Home Equity Conversion Mortgage (HECM) are three such programs. As demand increases, more reverse mortgage programs from different organizations will become available.

It is called a reverse mortgage because you borrow money from a lender, but the lender makes monthly payments to you, rather than you making monthly payments to the lender. All interest is paid at the end of the loan, rather than in the beginning.

What are some of the benefits of a reverse mortgage?

  • Strengthen your personal and financial independence.
  • Help pay for health care or other needs.
  • You can never lose your home in foreclosure as long as you maintain the property tax and insurance payments.
  • The loan is only paid off when the house is sold by you or your heirs, or all borrowers move out of the house.
  • Keep your Medicare or Social Security benefits.
  • Use it as a credit line and draw upon it as needed.
  • Get all your cash right away.
  • Get the best of both—get cash now and have a balance in reserve to use as a credit line.
  • No Income Requirements: The homeowner does not need to be working and is not qualified based on income.

As the homeowner receives monthly cash income, the loan balance increases. In the following twelve-month example, the homeowner begins with a debt-free home. As money is received by the homeowner, the mortgage grows. By the end of month twelve, the homeowner owes the bank $6,000 plus $232.44 interest. All Reverse Mortgage loans have a variable rate.

Assumptions*

Regular monthly advances $500
Annual interest rate 7.0 %
Monthly interest rate .583% (.07 / 12)

Month Beginning Balance Interest Ending Balance Cash Disbursement
0 0 0.00 0.00 $500.00
1 $500.00 $2.92 $502.92 $500.00
2 $1,002.92 $5.85 $1,008.77 $500.00
3 $1,508.77 $8.80 $1,517.57 $500.00
4 $2,017.57 $11.77 $2,029.34 $500.00
5 $2,529.34 $14.75 $2,544.09 $500.00
6 $3,044.09 $17.76 $3,061.85 $500.00
7 $3,561.85 $20.78 $3,582.63 $500.00
8 $4,082.63 $23.82 $4,106.44 $500.00
9 $4,606.44 $26.87 $4,633.31 $500.00
10 $5,133.31 $29.94 $5,163.26 $500.00
11 $5,663.26 $33.04 $5,696.29 $500.00
12 $6,196.29 $36.15 $6,232.44 $500.00

*Many criteria are considered when determining the reverse mortgage loan amount, interest rate, etc.



Skyline Funding, Inc. - 211 E. Ontario, Suite 1000 - Chicago, IL 60611
Office Phone: 312-649-2226 Fax: 312-649-5833


An Illinois Residential Mortgage Licencee # MB.0006013

Director IDFPR Contact: 122 S. Michigan Ave. Ste 1900 Chicago, IL 60603 Phone: 312-793-3000 

Chicago home loan, home loan in Chicago, chicago mortgage, or your chicago home loan.  We have the best rates for chicago home loans and home loans in chicago.  Very competitive rates for chicago home equity loan.  We service chicago home mortgages, loans in chicago, adjustable rate home loans.  Chicago mortgage home loans, chicago home equity loans, chicago arm loan, chicago adjustable rate home loan.  Chicago home loans, chicago mortgage home loan, home equity loan, chicago home equity loan.  Chicago fha home loans.  Chicago adjustable rate mortgage.  Chicago first time home buyer loan.  Chicago bad credit home loan, chicago sub prime home loan.  Chicago refinance home laon.  Chicago fha home laon, chicago adjustable rate morgage loan, chciago arm loan chicago.  First time home buyer loan.  Chicago bad credit home loan, chicago refinance home loans.  Chicago mrogage lender, chicago mortgage broker, chicago mortgage banker, Chicago mortgage consultant.  Fixed rate home loan chicago.  Fixed rate mortgage Chicago Financial services.  We provide chicago home loans and chicago mortgage  loans.  If you are shopping for a home loan visit our site today for a mortgage rate quote or to apply for a home loan.



Equal Housing Lender IAMB - Illinois Association of Mortgage Brokers NAMB - National Association of Mortgage Brokers

© 2010 Myers Internet All Rights Reserved

Powered by: Myers Internet | Admin Login