A reverse mortgage is a loan that enables homeowners 62 and over to convert part of the equity in their home into tax-free income without having to sell the home, give up title or take on a new monthly mortgage payment. Consumers are recognizing that traditional retirement tools, such as IRA’s, pensions, 401(k)s, CD’s and savings are not providing sufficient income to help fund everyday living expenses. Thru proper education, more retirees are recognizing that the home they have lived in for so many years can now provide a reliable source of supplemental income through using a reverse mortgage to access the equity accumulated in that home.
Record numbers of consumers are using reverse mortgages to remain in the their homes to supplement retirement income, pay for health care expenses, make home modifications, or simply establish a cash reserve for emergencies.
Recognizing the value of reverse mortgages, the US Congress made substantial improvements to the federally-insured Home Equity Conversion Mortgage by raising lending limits, adding new products with less fees, creating a home purchase program and implementing stricter consumer protections around cross-selling with other financial products.
Despite increased popularity, even some of the most basic facts about reverse mortgages are often misunderstood. The most common misconception is “A reverse mortgage is where a bank gives you some money and then takes the house”. That couldn’t be further from the truth. And that is where Kathy Rutkowski, Reverse Mortgage Consultant at Standard Bank and Trust, comes in.
As an experienced reverse mortgage loan originator, Kathy’s mission is to provide education to seniors and their families about the benefits of reverse mortgages, so they can make an informed decision about whether a reverse mortgage makes sense for their particular situation.
Kathy will assist with questions such as:
- How much money can I get?
- What are my payment options? (meaning payment TO the senior)
- What are the costs?
- Which is the best reverse mortgage product for me?
Along with 4 years of experience as a reverse mortgage originator, Kathy has over 10 years experience in the Real Estate/Mortgage industry. She is excited to be able to offer this product at Standard Bank and Trust, a trusted name in the Chicago-land area since 1947. With over 40 branches in Illinois and northern Indiana, Standard Bank prides itself on the variety of products it is able to offer the communities it serves.