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Wednesday July 8, 2009

Release Date: 07.08.09 | Location: All Metro Atlanta | Organization: Flammer Relations, Inc.

Five Star talks Reverse Mortgages

Mortgage expert available to explain option that pays senior homeowners cash

With many Atlantans experiencing losses in their 401K accounts and retirement investments, more homeowners are turning to reverse mortgages as a means of supplementing income, paying off debt or just establishing an emergency fund. Five Star Mortgage is reaching out to educate homeowners and buyers ages 62 and older on the advantages of this financing tool.

"We're making every effort to let seniors know that the investment they've made in homeownership is paying off right now," said Barbara Klonga, Five Star Mortgage's expert on reverse mortgages. "Reverse mortgages pay homeowners cash when they need it without the risk of ever having to pay back more than the home's value when it is eventually sold."

Instead of making a payment to a lender, people who hold a reverse mortgage receive a check each month or at a pre-determined frequency. The amount of money awarded through the reverse mortgage depends on the recipient's age, appraised home value and current interest rates. If a homeowner still owes money on their home, some reverse mortgage proceeds can be used to pay off the existing mortgage.

Reverse mortgages are available to homeowners and homebuyers who are at least 62 years old and have sufficient equity in their homes. Current income and credit scores are not considered. With new legislation passed by Congress this year, the loan limit for reverse mortgages is now $625,500, making them a viable, long-term option for even more homeowners and homebuyers.

Klonga recently answered common questions about reverse mortgages in an interview with www.AtlantaRealEstateForum.com. Information about reverse mortgages is also available at the Five Star Mortgage Web site or by calling Klonga at 770-495-3516. All homeowners also receive counseling from a local HUD approved counselor or an independent third party as a consumer protection measure to ensure that mortgage holders understand the program.

About Five Star Mortgage:
Five Star Mortgage ranked seventh on the 2007 Georgia Association of Mortgage Brokers "Top Gun" list of the Top 25 residential mortgage brokers, making them the highest ranked mortgage broker in Gwinnett. With offices in Duluth and Roswell, Five Star Mortgage offers highly competitive closing costs and interest rates on a wide array of mortgage options. The company is staffed by experienced industry leaders and employs one of only two Certified Mortgage Consultants in Georgia. Five Star Mortgage's efficient structure is designed to save customers time, money and stress. For more information, visit www.mortgagesaroundatlanta.com or call 770.495.3516.