Screen One Talking Points A Reverse Mortgage can optimize cash flow and promote peace of mind. It can contribute to a more contented and secure retirement. Use the money to supplement your pension or social security income, for home repairs, buying a car, unexpected expenses, even put it toward a new home – whatever you choose.
Screen Six Talking Points Reverse Mortgages are specifically designed for, and exclusively available to, older homeowners who have substantial home equity. Applicants must agree to receive (face-to-face or telephone) mortgage counseling from a HUD-approved counseling agency to explain your options and confirm your eligibility. Explain HUD – Housing and Urban Development
So, based on the HUD formula and assuming you have no liens on the home, the older you are, the more your home is worth, and the lower the interest rate, the more you’ll be able to borrow – up to the national lending limit. I can run a personal calculation for you with your specific information
Screen Ten Talking Points You will be responsible for maintaining the property and making necessary home repairs, as well as paying property taxes and homeowners insurance premiums. Any home sale proceeds in excess of the amount you owe belong to you or to your estate.
Screen Eleven Talking Points I’ll be happy to meet with you privately to answer your questions and help you choose the best financing solution to achieve your dream. Your HUD-approved counselor will further explain available options and confirm your reverse mortgage eligibility.
Screen Eleven Talking Points A Reverse Mortgage can never cause you to lose your home – even if the total of the payments made to you plus interest and mortgage insurance premiums exceed the value of the property, or if the set term over which you received your payments has expired.
Screen Thirteen Talking Points There are no restrictions on how you may use proceeds received through a reverse mortgage. You can direct the funds toward a variety of purposes, including: • Reducing high-interest debt • Supplementing retirement income • Remodeling or repairing your home • Paying property taxes • Covering healthcare expenses • Planning for long-term care needs • Growing your investment portfolio You can even use your reverse mortgage funds to purchase a new primary residence .
Screen Fourteen Talking Points Under some programs, monthly Reverse Mortgage advances may affect your eligibility, because they increase your liquid assets if you do not spend them within the month they are received. You should consult local program offices to determine how monthly mortgage payments might affect your specific situation.
Screen Fifteen Talking Points Just as with a traditional mortgage, you can sell your home at any time and pay off your reverse mortgage. Any home sale proceeds in excess of the amount you owe your mortgage lender belong to you.
Exit Screen Talking Points Leave this screen up as you take questions and wrap up your presentation.
Put your home to work for you DAN BATTE Home Mortgage Consultant Reverse Mortgage Specialist
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. 1
Instead of making monthly mortgage payments, your mortgage pays you. That’s the “reverse” part of a reverse mortgage.
Consult a tax advisor
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
Reverse Mortgage borrowers are required to obtain an eligibility certificate by receiving counseling sessions with a HUD-approved agency. Family members are also strongly encouraged to participate in these informative sessions.
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 residence.
Line Of Credit — Funds remain available for the customer to draw on as needed or in automatic monthly disbursements.
Combination — You can choose any combination of lump sum, monthly or line of credit disbursements. You can even receive an initial lump sum and put the rest in a line of credit. Regardless of how you choose to receive your proceeds, you can adjust your plan as often as you wish to accommodate changing needs.
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.
Because the home is the only collateral attached to the loan, any remaining home equity, along with your other possessions, belongs to you or your heirs.
Will receiving my reverse mortgage proceeds in monthly payments affect my Social Security or Medicare benefits?
If you opt to receive monthly payments, they will not affect your Social Security or Medicare benefits. However, your eligibility for need-based programs such as Medicaid or state assistance programs may be impacted. We recommend that you consult a tax or legal advisor and your local Area Agency on Aging for advice.
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 proceeds.
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.
Wells Fargo Home Mortgage is a division of Wells Fargo Bank, N.A., and has a presence in mortgage stores and bank locations serving all 50 states.