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Reverse Mortgages

Many older homeowners have accumulated a large amount of equity in their homes, but may still have a need for additional income during their retirement years. The Credit Union offers a Reverse Mortgage loan that can help you "tap" the equity in your home and supplement your monthly income. A Reverse Mortgage is a loan against your primary residence in which the Credit Union provides cash to the borrower in the form of a fixed monthly disbursement. An initial lump sum distribution is limited to the payoff of existing mortgages. Member Loan Review Committee approval is required for lump sum disbursement purposes which include home improvements, medical bills, debt consolidations and any lump sum distribution after the loan is originated. Joint checks for these disbursements are required. To assist borrowers who may have difficulty paying their property taxes and homeowner’s insurance premiums annually, the Credit Union will establish a service for the borrower where the Credit Union will contact the respective county tax office and insurance agent to set up monthly installments for these items and establish an automatic draft for payment. For those county tax offices and/or insurance companies that may not accept automatic drafts, we will work with the borrower to establish a set-aside account for them to deposit funds each month so they will have the funds to pay these items. All borrowers must be at least 62 years old and utilize the home as their primary residence. A Reverse Mortgage does not have to be repaid as long as the borrower(s) continue to live in the home as their primary residence. When the last borrower dies, sells the home or permanently moves out of the residence, the loan must be repaid, including interest and other charges.


  • All borrowers must be at least 62 years old
  • Fixed interest rate of 5% (5.22% APR1)
  • No periodic loan payment required
  • Property taxes, homeowner's insurance and home maintenance remain the responsibility of the homeowner
  • Simple interest accrual versus compounding interest
  • Origination fee of 0.75% of the appraised property value (cap of $1,500)
  • No mortgage insurance fees or monthly servicing fees
  • Property must be your primary residence and located in North Carolina
  • Manufactured homes, condos and town homes are not eligible
  • Maximum loan amount is based on the value of your home, the life expectancy of the youngest borrower and the interest rate on the loan
  • Certain property restrictions may apply, please contact your local branch or the Contact Center for additional information
  • Appraisal fee – typically ranges from $300 - $450
  • Closing Costs – includes attorney fees, recording fees, etc. - typically around $2,000
Repayment example: A Reverse Mortgage at a rate of 5% is made when the homeowner is 70 years of age and no lump sum disbursement is received at closing other than $3,000 for closing costs which are financed. $1,500 of the closing costs are for the origination fee based on an appraisal value of $200,000. The life expectancy is an additional 15 years from the time the loan is received. Assuming that a repayment event occurs when the loan has been outstanding for 15 years and the homeowner receives $625.00 in monthly disbursements; the balance owed would be $159,533.00. The APR1 would be 5.22%.

Before a Reverse Mortgage loan can be closed, all borrowers must receive consumer education from a US Department of Housing and Urban Development (HUD) and North Carolina certified reverse mortgage counselor on alternatives to the loans and the financial risk of the loan. A list of approved counselors can be found at the North Carolina Housing Finance Agency website. After participating in counseling, you will receive a certificate from the counselor validating that counseling has been completed.

Download our Reverse Mortgage Loan Application and provide the completed form to your local branch or the Contact Center.

1 APR = Annual Percentage Rate. The APR shown is based on the variables in the "Repayment example" provided above. Your APR will likely differ.
*Quoted rates, dividends, annual percentage yields (APY) and rates (APR) are subject to change daily at the discretion of the Board of Directors.