Archive for: January, 2024

Reverse mortgage in Illinois- Is it is the right choice to you?

Jan 24 2024 Published by admin under Uncategorized

While you send an application for any mortgage loan, it is better to have an idea on it. One of the common loan types for the house owners is reverse mortgage. This loan is intended for those, whose age is more than 62 years. It helps them in converting a part of their home equity into the cash.

Reverse mortgage is really one of the best options to the retirees, having very limited amount of income. These retirees use their wealth for covering the monthly expenses, including the healthcare cost. You won’t have any restriction on the way of using the proceeds from reverse mortgage.

In case of the conventional mortgage, you pay an amount to the lender. However, while it’s a reverse mortgage, the creditor has to pay to you. You won’t have to pay off your loan amount until you have vacated or sold the house. However, you must stay updated on your property tax and insurance.

Is there any risk in the mortgage?

While you have approached for reverse mortgage loan, you will have no risk to lose the property ownership or title. Your creditor does not own your house in any way. Your present age helps you to make out how much money you can get from the lender. Other factors, affecting the amount, including your house value, upfront costs and rates of interest. Older persons have a chance of getting higher amount of proceeds.

Funding limit with your reverse mortgage loan-

On the first year, you will be able to access very limited amount of money. While the loan amount is $100,000, you may access 60% of it. After thirteen months, you will get higher proceeds. However, in few cases, this 60% rule is not followed.

When you have presently property mortgage to repaid, you get an option of withdrawing more amount. The withdrawn amount will help you in paying off the mortgage. The additional amount that you can get is 10 % of $100,000.

The creditors will assess your financial condition. They try to make sure that you will be able to afford your stay in the house. You have to pay the property tax throughout the loan term. The lenders will also ask you about your pensions, investment or the source of income. You must disclose the delay in payment or credit-related issue. It is also essential to show the bank statements and information on the tax returns. The creditors check out whether you have presented the right clarification. Then, they give you approval of reverse mortgage.

The creditor will subtract the amount to be paid for insurance, tax and debt. The remaining amount of fund is your income on every month.

Nicholas Lambrinatos offering you reverse mortgage-

Reverse mortgage loan is of various types. You may better find out a reliable mortgage firm in Illinois and have this mortgage loan. Nicholas Lambrinatos, the CEO of one of the reputed mortgage companies in Chicago, offers this reverse mortgage to his clients. You may speak to the members of his team. Know all the rules to apply for this loan easily.

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Illinois Mortgage- Find the loan terms and types

Jan 24 2024 Published by admin under Uncategorized

As one of the house buyers, you have to choose the appropriate mortgage type. You may get confused while choosing the real estate mortgage. The process of buying property is intricate. However, it is also tough to pick the best mortgage from the boutique mortgage firms.

Mortgage- Closed and open

The major difference of these two mortgages is in flexibility to pay off an additional amount. You have the option of making prepayment. These prepayments help you in paying the mortgage very fast.

In case of open mortgage, there is a slightly higher interest rate. The reason behind it is that it gives you more options to deal with the transaction. Apart from making the payments regularly, you will be able to pay an additional amount. Before the loan term ends, you can pay it off fully. There is also an option of breaking the deal to contact with a different lender.

This open mortgage is the right option to those, who are trying to repay it very fast.

While it is a closed mortgage, the interest percentage is low. However, in case of repaying an additional amount, there is always a limit. All the lenders may not offer you this option for prepayment. You can try to choose a lender, presenting you with this privilege. While you have not followed the rules for mortgage deal, you have to pay the penalty. You may better speak to the mortgage company in Illinois and find out what they offer. You have to make out all the terms, related to the chosen mortgage scheme.

Choosing your mortgage term-

It indicates the time period up to which you make your contract. It comprises all the details of mortgage and interest percentage. The terms for mortgage may be 4 to 5 months or more than 5 years. While your mortgage term ends, you have to think of renewing it. More than one term is essential for the full repayment. However, while you have paid off the mortgage fully after the chosen term, you won’t have to renew it. The amount to be paid may varies on the basis of the chosen mortgage type.

You may like to make the mortgage renegotiation at a low interest rate. In this case, you have to choose mortgage for shorter term. Lots of real estate investors prefer it due to the lower interest percentage. Renegotiation of the mortgage is essential while the interest gets increased.

In case of the long-term mortgage, there is a stable interest percentage for the long-time period. One of the demerits is that you will have no option of making adjustment to the deal for the chosen term.

Where to have the best mortgage-

Find out the right mortgage firm for financing purpose. Nicholas Lambrinatos has created the best mortgage company for all the real estate investors. This firm is located at North Shore, Chicago. While you have thought of financing the residential houses, you may rely on this company. Within two weeks, you have a chance of getting the loan. From FHA to Jumbo, every option is available to you to get the mortgage without facing any issue.

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Illinois mortgage- Get solutions to all your queries

Jan 24 2024 Published by admin under Uncategorized

However, to take the mortgage, you have to know everything of this loan. Most of the potential property buyers will look for the mortgage. We are now going to deal with the questions on the mortgage in Illinois.

How should you start your mortgage application process?
It is essential to find out the reliable mortgage providers. After locating the mortgage company in Illinois, you have to make queries on the-

Mortgage types, offered by them
Mortgage-related costs
Time to have the approval for mortgage
Underwriting and loan processing

What are the documents, essential for mortgage?

Documentation to avail the mortgage is variable for every buyer. However, there are few documents common to all. Documentation is one of the ways to ensure social security. The mortgage firm in Illinois may ask you to submit the bank statement, driver license and a report on your asset. Additional documents are also needed to accomplish the process of application.

How much time do you take for offering the loan amount?

This time may vary, depending on the lending company that you’ve chosen. However, it is good to know about the average time, needed to have the loan. Most of the lenders provide you with the fund within thirty to forty-five days from the date of your application.

You have to make out the factors, which may delay this approval process. While undergoing the lending process, you have to speak to your creditor. You must send all the relevant documents to this creditor. Your co-operation with the mortgage company is always important to have the loan very fast.

Mortgage Points- What do they denote?

The concept on these points is not clear to most of the real estate investors. The points can be categorized in two ways- origination and discount points. Each of the points cost one percent of the overall funded amount.

A point helps in the reduction of interest amount by .25 percent. Thus, you will be able to save much money throughout the loan term. However, you have to speak to your lender to make out why it is essential buy these points. The best mortgage professionals will give you the right information on it.

Interest rate- Is it variable?

It is based on what mortgage type you have chosen for purchasing the house. For FHA and other similar mortgages, you will find a stable interest rate. You will not see any alteration in the rate throughout this loan term.

There are also mortgages with the adjustable rates. In this type of loan, you will have fixed interest rate for a set time period. After this period is over, there is a chance of increasing interest rate. Thus, it will also affect your monthly payment.

Choose the right mortgage company-

Nicholas Lambrinatos is one of the reliable and knowledgeable mortgage professionals. He has established his company in Chicago, (North Shore). His friendly team helps you in understanding various options to get the fund. From home equity loan to different mortgages, everything is available in his company for the purpose of financing. Thus, when you are looking for the lenders, you may visit the website of his company.

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