Many older homeowners have accumulated a large amount of equity in their homes, but may still have
a need for additional income during their retirement years. The Credit Union offers a Reverse Mortgage
loan that can help you "tap" the equity in your home and supplement your monthly income.
A Reverse Mortgage is a loan against your residence in which the Credit Union provides cash to the borrower
in the form of a fixed monthly disbursement and/or a single lump sum disbursement. Borrowers can use the
disbursements for a variety of purposes such as living expenses, health care expenses or home repairs.
All borrowers must be at least 62 years old and utilize the home as their primary residence. Property taxes,
homeowner’s insurance and home maintenance remain the responsibility of the homeowner. A Reverse Mortgage
does not have to be repaid as long as the borrower(s) continue to live in the home. When the last borrower
dies, sells the home or permanently moves out of the residence, the loan must be repaid, including all interest
and other charges.
Specifications
All borrowers must be at least 62 years old
Fixed interest rate (call for quote)
No monthly payments
Simple interest accrual versus compounding interest
Origination fee of 1% of the property value
No mortgage insurance fees or monthly servicing fees
Property must be your primary residence and located in North Carolina
Property must be located in a residential subdivision or within the corporate limits of a municipality
Manufactured homes, condos, town homes and rural properties are not eligible
Maximum loan amount is based on the value of your home, the life expectancy of the youngest borrower and the interest rate on the loan
Before a Reverse Mortgage loan can be closed, all borrowers must receive "face to face" Reverse Mortgage counseling
with a counselor approved by the North Carolina Housing Finance Agency. The counseling session is designed to
educate the borrower on the pros and cons of Reverse Mortgages, the availability of other mortgage options, the impact
of Reverse Mortgages on the borrower’s estate, and eligibility for assistance under federal and state programs. A list
of approved counselors can be found at the
North Carolina Housing Finance Agency website. After participating in counseling, you will receive a certificate from
the counselor validating that counseling has been completed.
The Credit Union has also prepared a SECU Reverse Mortgage
brochure to provide members with additional information on Reverse Mortgages and the Credit Union’s Reverse Mortgage loan.
We suggest you review the brochure and learn more about Reverse Mortgages. Once you are certain that a Reverse Mortgage will meet
your needs, you can apply for a Credit Union Reverse Mortgage.
