ROCKY MOUNT, N.C., Nov. 6 /PRNewswire/ -- Earlier this year, the Winbornes
faced the same predicament confronting many retirees:  The Wilmington couple
finally had the time to do the things they wanted -- but not enough money to
do it.
    That changed recently with the help of an innovative program from Centura
Bank (NYSE: CBC) that enables seniors to turn their homes into a steady source
of tax-free income.  Centura offers the  Home Keeper Reverse Mortgage,
developed by the Federal National Mortgage Association, which gives seniors
such as the Winbornes unprecedented financial freedom and enables them to keep
their homes in retirement.
    "It's a great program for older people who need a little more money," said
Mr. Winborne, who ran a wood preserving plant until his retirement.  "We had
enough to live on, but not enough to do much more than that."
    Centura is North Carolina's first bank to offer the Home Keeper Reverse
Mortgage, which provides Centura clients with cash or credit.  The loan is
drawn on the value of the house and needs never be repaid as long as the
borrower stays in his or her home.
    The loan is ideal for seniors living on fixed incomes who may be "house-
rich but cash-poor."  Customers borrow money against the equity they have in
their home, with the loan amount being repaid from the sale of the home after
the owners' death.
    "The Home Keeper Reverse mortgage gives our senior clients peace of mind
as they head into their retirement years," said Cecil W. Sewell Jr., Centura's
president and chief operating officer.  "We want our clients to be able to
keep the homes they worked hard all their lives to own and to have a chance to
enjoy life even more."
    Unlike regular home equity loans, the borrowers are under no obligation to
repay a reverse mortgage as long as they live in their home -- even if the
cumulative loan amount exceeds the value of the home.
    "This loan helps out clients such as a widow whose husband has died,
causing her to lose part of his Social Security check," said Reuben Harris,
who oversees the reverse mortgage program for Centura.
    Applicants must be at least 62 years old.  The loan size is determined by
a mathematical formula based on the value of the house, the age of the
youngest borrower and the number of borrowers.  The loan limit for the program
is $207,000.
    The Home Keeper reverse mortgage loan is the second of two Centura
services designed to give seniors financial security in their later years.
Several years ago, Centura was the first bank in North Carolina to offer
reverse mortgages from the Federal Housing Administration and is still one of
only a handful of banks offering the service.  Better known as Home Equity
Conversion Mortgages, these loans are also drawn on the equity of a home and
need never be repaid as long as the borrowers live in their homes.
    The loan limit for the FHA reverse mortgage varies from county to county
and can be as high as $141,500.  The size of the loan is determined by the
value of the home, the age of the youngest borrower and the interest rate.
The Fannie Mae program, according to Harris, is ideal for a single borrower in
a more expensive home, while the FHA program is better suited for two
borrowers in a less expensive home.
    Those who qualify for either loan can take the income in a lump sum,
periodic payments or as a line of credit.  The income is not subject to
federal income tax and does not affect Social Security or Medicare benefits.
The extra money can be used for any purpose:  home repairs, medical bills, a
new car or a special trip.
    With assets of $6.0 billion, Centura provides a complete line of banking,
investment, insurance and trust services to individuals and businesses
throughout North Carolina. It provides services through 170 traditional and
supermarket financial centers, more than 230 ATMs at financial centers, Wal-
Mart and Sam's stores, its Centura Highway telephone banking center, Quicken
and Microsoft Money, the leading personal finance software packages, and
America Online, the world's largest provider of online services.
    More information about Centura is available on the World Wide Web at
http://www.centura.com.

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