Louisville, KY. - Thousands of older Americans are putting an end to monthly cash struggles.
They are able to travel, visit friends, make home improvements - even buy motor homes.
It's all possible thanks to an innovative home equity conversion program offered by Fifth Third Bank. While most traditional home equity loans require immediate monthly repayment, Fifth Third's "reverse mortgage" pays the homeowner a monthly cash payment that does not require repayment until they no longer occupy the home. The homeowner continues to own the home while simply drawing on the home's equity.
"For many senior homeowners, it's like the proverbial 'water, water, everywhere, and not a drop to drink," said Greg Bryant, Reverse Mortgage Specialist at Fifth Third Bank. "Some seniors are on tight incomes that leave them thirsty for cash and its right there, all around them; in their homes. But without this type of loan, they have been unable to tap it."
Regular home loans require immediate monthly repayment to the bank, which often defeats the purpose of borrowing. With a reverse mortgage, there are no monthly payments back to the bank. And because the loan is based on equity, there is no need for credit check or income verification.
"For certain individuals, it can really be a godsend," Greg said. "And most children of senior homeowners we've talked to would rather see their parents benefit from extra monthly cash than see them struggle to save a home they (the children) may not even want or need."
Experts agree that reverse mortgages may likely be the wave of the future, allowing senior homeowners to stay in their homes longer and with less financial related stress.
"It's an option that warrants serious discussion between family members," Greg added. "It's often the difference between someone really living or simply surviving - and the struggle is often needless, considering there's a readily available solution so close at hand."
Fifth Third Bank is working closely with the Federal Housing Administration (FHA), and FANNIE MAE to guarantee these programs and serves on the Board of Directors for the National Reverse Mortgage Lenders Association.
Fifth Third Bank is a diversified financial services company headquartered in Cincinnati, Ohio, with $223 Billion in assets.
Fifth Third Bank has 45 banking locations throughout Louisville. Fifth Third Bank offers many valuable Wealth Management Services, including Trust, Insurance, Mortgages, Internet Banking and Deposit Relations.