Put your home to work for you

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Put your home to

work for you

Sara A. Cornwall

2507 Post Road, Southport CT 06890 Phone: 203-319-5014


1. Consult a tax advisor

What is a reverse mortgage

 It’s a home loan that enables you to convert a

portion of your home equity into tax-free funds

without having to sell your home, give up title, or

take on a new monthly payment.


 Instead of making monthly mortgage payments,


How a reverse differs from a traditional mortgage

 With a traditional mortgage or home equity loan

- Homeowners qualify based on their credit history and debt-to-income ratio. They borrow money which requires making monthly payments.

 With a reverse mortgage –

 Your mortgage makes payments to you and there are no income, employment or credit score qualifying restrictions.2


Why get a reverse mortgage

 A reverse mortgage can give you access to your home’s equity without the burden of monthly payments

 Reverse mortgage proceeds may be used for any purpose, including:

 Eliminating your existing mortgage  Meeting daily or monthly expenses  Covering healthcare expenses

 Remodeling or home repairs  Reducing credit card debt


How the loan proceeds are disbursed

 You have several options to receive your reverse mortgage proceeds, they are available to you in the following distribution options:

 Lump Sum — A specific amount is made immediately available (often used to pay off an existing mortgage).

 Term — Funds are released in fixed monthly amounts for a set period requested by the customer.

 Tenure — Funds are distributed in equal monthly allotments for as long as at least one homeowner continues to occupy the home as a principal


 Line Of Credit — Funds remain available for the customer to draw on as needed or in automatic monthly disbursements.


Three essential facts

 As long as all program requirements are met:

1. You retain the title to the property and continue to own your home.

2. Instead of making mortgage payments, you can have a mortgage that pays you.

3. You cannot owe more than the value of the home.

 Program requirements include but are not limited to:

 One of the borrowers continuing to live in the house  Keeping the taxes and insurance current

 Maintaining the property according to FHA standards


Age and eligibility requirements

 You and any co-owners must be at least 62 years old

 Your home must be your primary residence

 You must own your home free and clear, or the

existing mortgage must be paid off with the loan



How much can I borrow

 The amount that can be borrowed is determined by

a HUD formula that is based on the following


 The age of the youngest homeowner

 The appraised value of the home

 The current interest rate


What are the interest rate options

 Wells Fargo offers both fixed- and variable-rate

reverse mortgages.

 With a fixed-rate reverse mortgage, your interest rate will remain the same through out the life of the loan

 With a variable-rate reverse mortgage, the interest rate may adjust at predetermined periods.

 In most variable-rate cases, you may choose monthly or annual rate adjustments.

 The frequency by which your interest rate adjusts – monthly or annually - will not affect the number of loan advances you


The costs involved with a reverse mortgage

 A deposit for the appraisal is required to be paid at

the time of application.

 There are additional closing costs which may be

financed into the loan such as:

 Origination fee  Title insurance

 Mortgage insurance premium  Attorney fees


Reverse mortgage repayment

 You do not need to repay the loan as long as the program requirements are met, including:

 You or one of the borrowers continue to live in the house

 You keep the property taxes and homeowners insurance current  You maintain the property to FHA standards

 The balance due can come from home sale proceeds, or from other resources such as, savings, insurance or possibly

applying for a new mortgage. There is no requirement that the home be sold, only that the loan be repaid.


The reverse mortgage loan process

1. Discuss your post-retirement home financing goals with a reverse mortgage consultant.

2. Receive consumer counseling from a HUD-approved counselor.

3. Meet with a Wells Fargo Reverse Mortgage Consultant to apply for your loan.

 Fill out an application

 Select a payment plan

 Present required documentation

4. Underwriting and loan decisioning process.

5. Upon approval, a closing is scheduled. Initial interest rate will be set the week of closing.


Frequently asked questions

Who owns the home?

 You do. You retain the title and ownership of your home. The bank does not own your home.

Can the bank take my home?

 No, as long you continue to occupy the home as your primary residence, pay the appropriate taxes and

insurance, and maintain upkeep of your home.3


Frequently asked questions

Are there restrictions on how I can use my

Reverse Mortgage proceeds?

 No. It’s your money to use as you see fit. Some common uses include:

 Eliminating your existing mortgage  Meeting daily or monthly expenses  Covering healthcare expenses


Frequently asked questions

Will receiving my reverse mortgage proceeds in

monthly payments affect my Social Security or

Medicare benefits?


Frequently asked questions

What if I decide to sell my home?

 You always retain title to your home during the period of your Reverse Mortgage loan. You can sell your home at anytime and pay off the reverse mortgage with the


Well established.

Well respected.

Wells Fargo.

 Wells Fargo Home Mortgage is the nation’s leading retail originator of reverse mortgages.

 Wells Fargo & Company is a diversified financial services

company with 276,000 team members who provide banking, insurance, investments, mortgage and consumer finance for more than 48 million customers.


All program requirements must be met. The information in this presentation is accurate as of the date of printing and is subject to change without notice. Wells Fargo Home Mortgage a division of Wells Fargo Bank, N.A. © 2009 Wells Fargo Bank, N.A. All Rights Reserved. #102107 5/09

Financial independence and peace of mind

I can help you choose the Reverse Mortgage financing

solution that best fits your individual needs and


Sara A. Cornwall

Certified Reverse Mortgage Consultant

Phone 203-319-5014

Toll Free 866-494-1248 ext 5014

Fax 866-539-6068





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