Wells Fargo Reverse Mortgage Allows You To Stay Liquid

2007-03-08 10:33:40

( Financial )



You may have assets now that you’re retired, but these assets are not liquid. You may want to tap the equity in your home through refinancing. But you’re afraid of putting your house at risk of foreclosure since you don’t have a steady income to pay off the loan. To answer address these apprehensions, an innovative solution, called reverse mortgage, has been introduced to provide funds to seniors who are seeking more cash.

Reverse mortgages, like a Wells Fargo reverse mortgage, a Liberty reverse mortgage or AARP reverse mortgages, are unique types of government-backed home equity loans designed to be repaid when your house is sold at some point in the future. You can access the equity of your home now without worrying about the monthly payments because in a reverse mortgage, it is the lender who pays you.

A Wells Fargo reverse mortgage cannot cause your home to be repossessed. Unlike the traditional home equity loan, a reverse mortgage doesn’t require you to pay monthly payments. And since you don’t make any payments, then there’s no such thing as a foreclosure or delinquency, and title doesn’t change hands.

To qualify for a Wells Fargo reverse mortgage, you have to meet the following requirements:

• The title of the house must be under your name or with co-owners;
• You and the co-owners must be at least 62 years old;
• The house must be your primary residence which can be a single-family or a two-to-four unit dwelling;
• You must have equity in your home; and
• You must have spoken with an approved Wells Fargo reverse mortgage counselor who shall explain to you in details the consequences of getting a reverse mortgage.

Note that like a conventional loan, there are closing costs involved in a reverse mortgage, but these can be included in the loan itself.


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