1994 BRINGS REVERSE MORTGAGE INCOME TO TENNESSEE SENIORS; 'LIKE TURNING YOUR HOME INTO A PENSION FUND'
/ADVANCE/ NASHVILLE, Tenn., Jan. 1 /PRNewswire/ -- The new year will bring some important changes for Tennessee's senior citizens when state legislation goes into effect on January 1 making federally-insured reverse mortgage income legally available for the first time to older homeowners. Steven Baer, president of Senior Income Reverse Mortgage Corp., announced today that his firm plans to begin offering its government-backed financial product to homeowning Tennessee seniors seeking extra retirement funds for necessities or pleasures. A reverse mortgage is a special financial instrument that enables senior citizens age 62 and over to remain securely in their own homes for life with full ownership rights while converting some of the value of their homes into tax-free, guaranteed monthly retirement income or cash reserves. Unlike a regular mortgage, the monthly reverse mortgage check goes to the homeowner from the company, and imposes no qualifying income or credit standards. No repayment is required until the last co- owning senior dies, sells or moves from the home. Normally, repayment of the cash received, plus various charges, is made with proceeds from the sale of the home by the estate, with all remaining equity and home appreciation going to the heirs. Baer said, "Finally, older people in Tennessee can tap the wealth in their homes for any of their spending needs without selling. It's like turning your home into a pension fund. Our clients around the country are using their monthly reverse mortgage income to help with such necessities as home health care, prescriptions, property taxes, home repairs, mortgage payoffs and credit card bills. Others are funding pleasures like travel, dining out, new cars, family reunions and gifts for loved ones. I expect Tennessee seniors will be just as creative." Baer said interested seniors can obtain a free consumers information kit on reverse mortgages by calling Senior Income at 1-800-774-6266. The kit shows that the amount of money available is a function of the person's age, home value and the applicable interest rate. A 75-year- old couple with a $100,000 home in the Nashville area, for example, today could receive a monthly check of about $600 for the next 10 years, or $380 for as long as either partner lives in the home. Or, they could obtain as much as $50,000 to pay off an existing mortgage, do some remodeling, or keep available in a cash reserve account growing at an annual rate of about 7.9 percent. However the money is received, no repayment is made until the owners leave the home. Senior Income, nationally headquartered in Chicago, is the first company in the nation organized exclusively to provide older homeowners with federally-insured reverse mortgage income, backed by the Federal Housing Administration. Although federally-insured reverse mortgages are now available in 47 states, they have not been available to Tennessee seniors due to impediments in state law cleared away by new legislation that becomes effective January 1. -0- 1/1/94/0600 /CONTACT: Amy Jones of Senior Income Reverse Mortgage Corporation, 1-800-774-6266/
CO: Senior Income Reverse Mortgage Corporation ST: Tennessee IN: FIN SU:
TM -- NY041 -- 8212 12/30/93 20:46 EST
|Printer friendly Cite/link Email Feedback|
|Date:||Dec 30, 1993|
|Previous Article:||BOSTON GLOBE AND ITS EMPLOYEES ASSOCIATION REACH TENTATIVE AGREEMENT ON CONTRACT|
|Next Article:||CROSS COUNTRY SKI CONDITIONS ANNOUNCED|