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Reverse Mortgage Slide Show

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Reverse Mortgage Slide Show

  1. 1. Reverse Mortgage Financing Solutions Enjoy a More Comfortable Retirement in Your Own Home
  2. 2. <ul><li>Count on Our Capabilities </li></ul><ul><li>Wells Fargo Home Mortgage is the nation’s leading retail originator of reverse mortgages, helping homeowners age 62 and older capitalize on the equity they’ve built in their homes to secure financial independence and peace of mind </li></ul><ul><li>Last year alone, Wells Fargo Home Mortgage helped senior Americans secure over one-fifth of all the reverse mortgages originated in the country. </li></ul><ul><li>Wells Fargo Home Mortgage is among the few lenders to provide a network of reverse mortgage lending specialists across the country. </li></ul><ul><li>Wells Fargo Home Mortgage has a local presence in more than 2,500 mortgage stores and bank branches, plus the capabilities to serve the home financing needs of customers in all 50 states. </li></ul>
  3. 3. <ul><li>What Is a Reverse Mortgage? </li></ul><ul><li>It’s a home loan that enables you to convert a portion of your home equity into tax-free 1 funds without having to sell your home, give up title, or take on a new monthly payment. </li></ul><ul><li>All co-owners must be at least 62 years old. </li></ul><ul><li>There are no income, employment, medical or credit score qualifying restrictions. 2 </li></ul><ul><li>Receive monthly payments instead of making them. </li></ul><ul><li>You do not need to repay the loan as long as you or one of the borrowers continues to live in the house, keep the taxes and insurance current, and maintain the property to FHA standards. </li></ul>1 Consult a tax advisor 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.
  4. 4. <ul><li>Why Would I Choose a Reverse Mortgage? </li></ul><ul><li>Security – You retain title and ownership of your home. </li></ul><ul><li>Flexibility – Obtain your loan proceeds in a lump sum, in monthly installments, as a line of credit, or any combination of the three. </li></ul><ul><li>Choice – You can change payment plans as many times as you wish. </li></ul><ul><li>Peace of Mind – Enjoy a more comfortable retirement in your own home. Mortgage insurance ensures that you will never owe more than the value of your home. </li></ul>
  5. 5. Wells Fargo Home Mortgage offers the Home Equity Conversion Mortgage (HECM) an FHA-insured Reverse Mortgage program.
  6. 6. <ul><li>Age and Eligibility Requirements </li></ul><ul><li>You and any co-owners must be at least 62 years old. </li></ul><ul><li>Your home must be your primary residence. </li></ul><ul><li>You must own your home free and clear, or </li></ul><ul><li>Your home debt must be paid off with Reverse Mortgage proceeds. </li></ul><ul><li>Educational counseling with a HUD-approved counselor is required. </li></ul>
  7. 7. <ul><li>Flexible Payment Options </li></ul><ul><li>You can obtain your Reverse Mortgage proceeds: </li></ul><ul><li>— In a lump sum payment to cover large expenses </li></ul><ul><li>— In fixed monthly payments to supplement your income </li></ul><ul><li>— As a line of credit to draw on as you need it </li></ul><ul><li>— Or any combination of cash, monthly income and credit line </li></ul><ul><li>you select </li></ul><ul><li>You can receive an immediate cash advance in addition to monthly payments. </li></ul><ul><li>You can change payment plans as many times as you wish until your funds are exhausted. </li></ul>
  8. 8. <ul><li>Reverse Mortgage Repayment </li></ul><ul><li>You do not need to repay the loan as long as you or one of the borrowers continues to live in the house, keep the taxes and insurance current, and maintain the property to FHA standards. </li></ul><ul><li>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. </li></ul>
  9. 9. <ul><li>The Reverse Mortgage Loan Process </li></ul><ul><li>Discuss your post-retirement home financing goals with an expert. </li></ul><ul><li>Receive consumer counseling from a HUD-approved counselor. </li></ul><ul><li>Meet with a Wells Fargo Reverse Mortgage Consultant to apply for your loan. </li></ul><ul><ul><li>Fill out an application </li></ul></ul><ul><ul><li>Select a payment plan </li></ul></ul><ul><ul><li>Present required documentation </li></ul></ul><ul><li>Underwriting and loan decisioning process. </li></ul><ul><li>Upon approval, a closing is scheduled. Initial interest rate will be set the week of closing. </li></ul><ul><li>After any existing debt on your home is paid in full, your loan funds are disbursed. </li></ul>
  10. 10. Frequently Asked Questions Can I be forced to sell my home if the money I owe on the loan exceeds the value of 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. 1 1. As long as all program requirements are met.
  11. 11. Frequently Asked Questions Are there restrictions on how I can use my Reverse Mortgage proceeds? Absolutely not! It’s your money to use as you see fit.
  12. 12. Frequently Asked Questions What if the value of my home increases during the mortgage term? No matter if, or how much, your property has appreciated in value, you or your estate are only required to pay back the outstanding balance due on your Reverse Mortgage at the time the home is sold . Any excess proceeds from the sale of your home belong to you or your estate.
  13. 13. Frequently Asked Questions Will receiving my Reverse Mortgage proceeds in monthly payments affect my Social Security, Medicare supplemental security income, or Medicaid 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.
  14. 14. 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 .
  15. 15. Secure Financial Independence and Peace of Mind Your Reverse Mortgage Consultant can help you choose the Reverse Mortgage financing solution that best fits your individual needs and requirements. Laurie MacNaughton Reverse Mortgage Specialist Wells Fargo Home Mortgage 21355 Ridgetop Circle, Suite 100 Sterling, Virginia 20166 703-433-1012 Direct 703-477-1183 Cell 866-548-5107 Fax [email_address] 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. © 2007 Wells Fargo Bank, N.A. All Rights Reserved. #102107 5/07

Editor's Notes

  • Screen One Talking Points Place your post-retirement home financing concerns in experienced hands. Call upon our strengths. Gain access to extensive resources, extensive capabilities. For nearly six generations, the Wells Fargo name has stood for reliability, integrity and pioneering products and services that help people manage their money.
  • Screen Two 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 Three Talking Points Over the years, you worked hard to own your home. Now there’s a way to put your home to work for you. A Reverse Mortgage provides the security of knowing you have funds available for planned or unexpected expenses. This kind of loan can never cause you to lose your home.
  • Screen Four Talking Points The program offered by Wells Fargo Home Mortgage has specific loan amount, property and funds-distribution guidelines. I will be pleased to sit down with you and any family members you wish to accompany you. I’ll listen to your goals, discuss your preferences and help you chose the Reverse Mortgage financing solution that best fits your individual needs and requirements.
  • Screen Five 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.
  • Screen Six Talking Points A Reverse Mortgage gives you flexible access to your home equity. “Term” payments are non-taxable monthly payments for a specified period of time. “Tenure” payments are non-taxable monthly payments for as long as you occupy your home. I can show you payment examples to better illustrate possible payments amounts.
  • Screen Seven 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 Eight 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 Twelve 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 second or vacation home. .
  • Screen Thirteen Talking Points After the loan is repaid, any home sale proceeds in excess of the amount you owe your mortgage lender belong to you or to your estate.
  • 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.