Meredith Village Savings Bank Offers Reverse Mortgages to Help Seniors Live More Comfortably

PR Log (Press Release) – May 29, 2008 – With the cost of gas, groceries and heating fuel on the rise, seniors on fixed incomes are finding it increasingly difficult to make ends meet.  For those who own their own homes, there is also the extra burden of property taxes, repairs and other household expenses that can seem insurmountable.

Meredith Village Savings Bank now offers a solution to help these seniors enjoy the retirement they’ve worked so hard for and stay in the homes they love. A reverse mortgage (http://www.mvsb.com/mortgages/reverse_mortgage.php) is a loan that enables homeowners 62 and older to turn the value of their home into cash without having to move out or repay the loan each month.

“Offering reverse mortgages allows us to help the growing number of older people in our communities who lack the savings to stay in their homes and fully enjoy their retirement years,” says Carol Bickford, vice president of retail lending at Meredith Village Savings Bank. “We know that many of the seniors in our communities are struggling with rising property taxes, growing healthcare costs, and a higher cost of living which is outstripping their retirement savings. A reverse mortgage can help.”

While a growing number of large mortgage companies and national lenders are now also offering reverse mortgages, MVSB is the only community bank in the Lakes Region that provides this option.

“It can be uncomfortable to talk about your finances with people you don’t know very well,” says Bill Beyer, CEO and president of MVSB. “This is a big decision for seniors and their families and they need a trusted resource they can rely on to help them make the decision that’s right for them. People throughout the Lakes Region have trusted their banking with us for close to 140 years and they know we’re here to answer their questions face-to-face and make sure they are fully informed and comfortable with the process.”

The application process for a reverse mortgage can take a bit longer than a traditional mortgage because of the education process that is involved. Prior to closing on the loan, applicants receive counseling with an independent third party to ensure they know all the facts and have time to consider all the implications of their decision.

With a reverse mortgage, seniors have three options for borrowing on their home equity – lifetime monthly payments, one large lump sum or a credit line. The money can be used to pay for medications, food, property taxes, home repair or other household costs and living expenses.  

Benefits of reverse mortgages include:

Homeowners retain the title to their property and can stay in their homes

There are no restrictions on how homeowners use the money from a reverse mortgage. Many opt for reverse mortgages to improve their cash flow, pay for healthcare expenses, cover property taxes, make home improvements, or finance their retirement goals.

No monthly payments are required. As long as the homeowner continues to live in their house, there are no monthly payments; the loan is paid off when they are no longer living in the home or when the house is sold.

The proceeds are tax-free (consult a tax advisor for more information).

For more information or to find out if a reverse mortgage is right for you or your loved one, contact Meredith Village Savings Bank’s reverse mortgage specialists – Lynn Ostrand at (603) 528-7406 or Lori Borrin at (603) 279-9241.  http://www.mvsb.com/mortgages/reverse_mortgage.php

Meredith Village Savings Bank is an independent mutual savings bank with 11 offices serving individuals, families, businesses, organizations and towns around Lake Winnipesaukee and the Plymouth area. MVSB has offices in Alton, Ashland, Gilford, Center Harbor, Laconia, Meredith, Moultonborough, Plymouth, and Wolfeboro. More information about the bank can be found at http://www.mvsb.com