A “reverse” mortgage is a loan against your home that you do not have to pay back for as long as you live there. With a reverse mortgage, you can turn the value of your home into cash without having to move or to repay the loan each month. The cash you get from a reverse mortgage can be paid to you in several ways: all at once, in a single lump sum of cash; as a regular monthly cash advance; as a “creditline” account that lets you decide when and how much of your available cash is paid to you; or as a combination of these payment methods. No matter how this loan is paid out to you, you typically don’t have to pay anything back until you die, sell your home, or permanently move out of your home. To be eligible for most reverse mortgages, you must own your home and be 62 years of age or older.
While it may seem that Reverse Mortgages are a relatively new “tool” for financial independence, in actuality, these loans have been around for over ten years. It is only recently, however, that they have come under close scrutiny by the Federal Government. This scrutiny has resulted in many improvements which are designed to protect senior homeowners and their heirs. In fact, today, no homeowner can obtain a Reverse Mortgage without the approval of an independent government approved counseling agency!
A Reverse Mortgage is a very unique home loan that will allow a homeowner, age 62 or older, to convert a large portion of the equity in their home into tax-free cash. Unlike a traditional home equity loan, no monthly repayments are ever required. And–there is no cash outlay required at settlement! Thousands of Americans have “reversed roles” and are letting their lenders pay them– while they remain in their home!
Reverse Mortgages have been subject to many myths and misconceptions over the years. One of the biggest myths associated with this mortgage is that the costs associated with them are simply too high. With our highly trained and experienced staff, you will be able to evaluate the total costs over the lifetime of your loan. With this information, you will be able to see how a Reverse Mortgage could actually be one of the most inexpensive sources of tax-free revenue available today to meet your financial needs.
Myth number two is that Reverse Mortgages are only for the poorest of our seniors. Increasingly, they are becoming a valuable tool in estate planning for all seniors–to offload, preserve–and potentially provide even greater wealth for their heirs.
Wells Fargo wants to stress the importance of educating our clients and the heirs of our clients about the subject of Reverse Mortgages. As one of the premier mortgage firms, Wells Fargo has a rich and vast array of financial products–so we will be sure to help you to decide whether this is the right product for you.
