OHIO'S SENIOR HOMEOWNERS HAVE NEW INCOME OPTION, REVERSE MORTGAGE FIRM ANNOUNCES; 'LIKE TURNING YOUR HOME INTO PENSION INCOME'
/ADVANCE/ CINCINNATI, Jan. 17 /PRNewswire/ -- Ohio's older homeowners will be among the first in the nation to have a new option for receiving federally insured reverse mortgage income, according to a company that specializes in the field. Steven Baer, president of Senior Income Reverse Mortgage Corporation, announced today that his Chicago- based firm is now offering its government-backed financial product to homeowning Ohio 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, "Older people in Ohio can now use our product to tap the wealth in their homes for any of their spending needs without selling. It's like turning your home into pension income. We're serving hundreds of clients in the midwest who 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 Ohio 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 Cleveland, Columbus, or Cincinnati area, for example, today could receive a monthly check of about $595 for the next 10 years, or $375 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, to do some remodeling, or to keep available in 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. Although groups like the American Association of Retired Persons have promoted the reverse mortgage idea around the country for a number of years, Senior Income 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. Baer said his company also is the first anywhere to offer the option of receiving a cash bonus linked to a lower interest rate that adjusts monthly, which Ohio residents may be among the first to try. For the 75-year-old couple mentioned above the bonus would mean an extra $3,000 over a normal reverse mortgage, plus the lowest annual interest rate available in the country at 4.66 percent as of Jan. 10, said Baer. Changes in the interest rate are not felt by the homeowners, said Baer, because there is no effect on the monthly check the homeowners receive, and no monthly repayment required of them. In addition to Ohio, Senior Income is expanding into neighboring Indiana, West Virginia and Kentucky. -0- 1/17/94 /CONTACT: Dick Wiberg, 1-800-774-6266, for Senior Income Reverse Mortgage Corp./
CO: Senior Income Reverse Mortgage Corp. ST: Ohio IN: FIN SU:
SP -- NY013 -- 1676 01/13/94 08:33 EST
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|Date:||Jan 13, 1994|
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