Rancho Cucamonga, CA (PRWEB) August 29, 2007
Homeowners in their golden years will soon have relief from rising expenses, and it's coming from a familiar source: their homes.
Statewide Bancorp announced this week it will offer reverse mortgages, which allow homeowners age 62 and up to convert part of their home equity into tax-free income. Payouts can come as a lump sum, a monthly income, a line of credit, or a combination of all three.
"Rising energy costs, rising healthcare costs, and taxes are making it difficult for Seniors to enjoy their golden years," says Statewide Bancorp's COO Alex Diaz, Jr. "Reverse mortgages provide a much-needed financial flexibility."
The homeowner will never have to make a payment as long as they occupy the home, which is why many borrowers are using reverse mortgages, even for purchasing a home. Statewide now offers these mortgages with loans up to 6 million dollars.
The new product can also help eligible homeowners generate cash for home improvements, travel and other out-of-pocket expenses.
"Social security and pensions just don't go far enough any more," explains Diaz. "This is a chance for Statewide Bancorp to help many homeowners supplement their income."
More than 300,000 seniors have tapped reverse mortgages nationwide, according to a report from the U.S. Department of Housing and Urban Development.
In contrast to traditional "forward mortgages," lenders make payments to borrowers during the term of the loan.
"Reverse mortgages are a modern day fountain of youth," says Diaz. "It allows homeowners a chance to actually enjoy their retirement."
Baby boomers are among the key players in the reverse mortgage market as they seek new ways to finance quality care for elderly parents.
In a tough housing market, tapping a home's equity with a reverse mortgage offers an alternative to selling the family home due to financial difficulties.
Borrowers who still owe money on a first mortgage are eligible for the program in most cases, depending on their home's current value and the outstanding balance on their original loan.
Before being approved for a reverse mortgage, homeowners must first meet with an independent counselor from a government-approved housing counseling agency. The counselor will explain the pros, cons and implications of a reverse mortgage.
For more information, please visit http://www.statewidebancorp.com.
About Statewide Bancorp, Inc.
Statewide Bancorp is one of the countries fastest growing and most innovative mortgage companies and has been featured recently in the Inc 5000 and Entrepreneur Hot 500. Statewide Bancorp has developed a process that enables the company to work efficiently with minimum overhead. The streamlined approach enables the company to offer competitive rates and fees. Statewide Bancorp, Inc. is headquartered in Rancho Cucamonga, California and does business in various states accross the country. For more information about Statewide Bancorp, Inc., visit http://www.statewidebancorp.com or call 1-800-737-0104.