State Employees' Credit Union Rolls out Consumer-Friendly Reverse Mortgage
RALEIGH, N.C., Aug 04, 2008 (BUSINESS WIRE) -- State Employees' Credit Union (SECU) is pleased to announce a consumer-friendly reverse mortgage designed to help senior members utilize the wealth in their homes in the best manner. Setting it apart from other industry-standard reverse mortgages, the Credit Union loan offers a fixed, stable rate of interest, a simple interest accrual method, a low origination fee of 1%, no mortgage insurance and no monthly service fees!
Many older homeowners have a large amount of equity in their homes but still have a need for more income on a monthly basis to balance their budget. In some cases these homeowners do not qualify for typical home equity loans and need another option in order to stay in their home or help pay for home healthcare. One alternative is a reverse mortgage loan. A reverse mortgage is a loan against a residence to provide cash to assist with living expenses, typically in the form of a lump sum or fixed monthly disbursement to the borrower. Borrowers must be 62 years of age, utilize the home as their primary residence and receive consumer education on the product from a NC certified reverse mortgage counselor.
Phil Greer, Senior Vice President of Loan Administration states, "SECU investigated the reverse mortgage marketplace and we saw numerous opportunities to provide this important product to our members, reducing the typical costs being assessed. Through reduced fees, a fixed rate of interest and a simple interest accrual method, we will provide the member with an enhanced use of their equity. This will result in more funds being made available to the member in order to assist with their day-to-day living expenses. The features of the SECU reverse mortgage are very consistent with our 'Do the Right Thing' philosophy."
SECU sought assistance from various senior-affiliated organizations in designing a beneficial reverse mortgage product. To provide additional guidance and financial education on reverse mortgages, SECU also published a booklet for members to learn about the product. The booklet is available via the SECU website at
www.ncsecu.org.