Reverse Mortgages

Today, there are more options for retired individuals and couples than ever before.

Make the Most of Retirement!

If you are at least 62 years old and have low or no outstanding mortgage debt, Reverse Mortgage programs can allow you to borrow against the equity you’ve built in your home. That’s the “reverse” part of this kind of mortgage loan. Instead of making monthly payments, you can opt to receive them!

Reverse Mortgage vs. Traditional Refinance Loans

Traditional refinance loans mean that the homeowner borrows a large amount of money and makes monthly payments. As payments are made over the term of the loan, the loan balance gets smaller and the equity grows. With a variable-rate Reverse Mortgage, the homeowner can borrow small amounts — monthly or at other intervals through a line of credit. Over the course of time, the loan balance gets larger, and equity gets smaller. The balance due can be paid out of 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. Ask a reverse mortgage consultant for details about when repayment may be due.

Flexible Access to Loan Proceeds

The way that borrowers access loan proceeds varies with the type of Reverse Mortgage they select:

  • A fixed-rate reverse mortgage disburses funds in a lump sum to cover large expenses
  • A variable-rate reverse mortgage offers several disbursement options:
    • In monthly installments to supplement income As a line of credit to draw on as necessary
    • In a lump sum to meet large or immediate needs
    • A combination of these options
  • Borrowers can change their disbursement plans as many times as they wish.

Stay in Your Home with Peace of Mind

There are no income, employment or credit qualifying restrictions. Maximum loan amount is based on age, current interest rates, where the borrower lives and the value of the home. You do not need to repay the loan as long as you or one of the borrowers continue to live in the house, keep the taxes current and maintain the property to FHA standards. (Please ask reverse mortgage consultants about the limited events that trigger payment.)

1 Reverse Mortgage borrowers are required to obtain an eligibility certificate by receiving counseling from a HUD-approved agency. A fee is charged. Family members are also strongly encouraged to participate in these informative sessions
– William Thorne, Wells Fargo Reverse Mortgage Specialist