Many older homeowners may find themselves in need of additional income in their retirement years. Put the equity in your home to work for you and consider an LGFCU Reverse Mortgage.
A reverse mortgage is a loan against your residence in which the Credit Union provides cash as a lump sum, a line of credit, or a fixed monthly disbursement.
Members can use the disbursements for whatever is needed, from covering daily living or health care expenses to making repairs or accessibility improvements to the home. Lump sum only distributions are limited to the payoff of existing mortgages and other debt, medical care expenses, and home improvements.
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.
Before a reverse mortgage loan can be closed, all borrowers must receive face-to-face counseling with a North Carolina Housing Finance Agency-approved financial counselor. The 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.