Wells Fargo Reverse Mortgage

Reverse Mortgage for Seniors

Have you considered getting a reverse mortgage? If you spend much time at all watching TV, there's no way you could have escaped all the commercials. Is it a good idea, though? No one can deny that the U.S. economy is in somewhat of a tailspin. The current downward spiral has negatively impacted millions of Americans, but perhaps one of the hardest hit groups is senior citizens. Most seniors are on a fixed income, and many are turning to reverse mortgages as a solution.

Definition of Reverse Mortgage

What's a reverse mortgage? For most people, their biggest asset is their home, and many seniors have their home mortgages paid off or at least mostly paid. A reverse mortgage for homeowners frees up the equity in a home without having to sell the home or pay loan payments on the funds.

Traditional home equity loans are becoming more and more difficult to get. Banks are hesitant about making loans because of the economy and their decrease in cash flow. Reverse mortgages, however, are different.

Instead of paying a monthly mortgage payment, the homeowner receives a monthly sum with the approval of a reverse mortgage, or a lump sum can be obtained. And best of all, the homeowner remains in the home for as long as he lives, and the loan isn’t repaid until the homeowner dies, sells the home, or moves to another location.

In essence, the definition of reverse mortgage is similar to selling your home without having to leave it.

Reverse Mortgage Age Requirements

The reverse mortgage age requirements are perhaps the most stringent qualification. All parties listed as owners of the home in question must be at least 62 years old. Most lenders allow two owners of a reverse mortgage, and some, like Wells Fargo, allow up to three owners. No matter how many owners of the home are listed, each must satisfy the reverse mortgage age requirements.

I've also been informed by lenders that both spouses must be over the age of 62, even if both names aren't on the deed. For example, let's say John is 65 years old, and he owns a home. He's married to Sue, but her name does not appear on the deed. Sue, by the way, is only 55. John won't qualify for a reverse mortgage because his spouse doesn't meet the minimum age requirement.

Who Can Get a Reverse Mortgage?

Single-family homes, condominiums, detached homes, townhomes, planned unit developments, and even some manufactured homes might qualify for a reverse mortgage. All the owners of the home must be at least 62 years of age and citizens of the United States, and they must live in the home full time as a permanent resident.

There is no credit check, no income qualifications, and no pre-payment penalties on most reverse mortgages. What does that mean for you? It means that most everyone 62 and older can get a reverse mortgage, as long as they meet the criteria for the loan.

Reverse Mortgage Loan Limits

Are there reverse mortgage loan limits? Yes, there are limits, but they're higher than they used to be. Because of the recent Housing and Economic Recovery Act, the Federal Housing Administration has increased the maximum amount of reverse mortgage loan limits from $362,790 to $417,000. Origination fees of reversed mortgages have also been capped at $6,000.

Reverse mortgages are based on the value of your home, so you’ll never have to worry about owing more than your home is worth. The amount of money you qualify for is based on the age of the youngest homeowner. In this case, being older is actually beneficial.

What can Proceeds from a Reverse Mortgage be used for?

Many homeowners wonder how the proceeds from a reverse mortgage can be used. Are there any restrictions? The funds a homeowner receives from a reverse mortgage can be used for anything. Recipients might choose to use the money for home improvements, to pay off other bills, to pay medical expenses, or to take the vacation of a lifetime.

A reverse mortgage for seniors allows retirees to live a life of financial independence and freedom.

Best Reverse Mortgage

You want to find the best reverse mortgage - for you and your individual situation. Homeowners have a wide range of banks and lending institutions from which to choose when it comes to reverse mortgages. If you're looking for the best reverse mortgage, check out a Wells Fargo reverse mortgage for seniors. Wells Fargo offers very competitive fees and rates associated with reverse mortgages and prides itself on immediate communication with customers.

With a Wells Fargo reverse mortgage, there’s no fee for the initial consultation. A specialist will fully explain all the ins and outs and the pros and cons of reverse mortgages with potential clients. This reverse mortgage consultant will examine your unique financial situation and tailor a reverse mortgage to fit your specific goals and needs.

Wells Fargo has banks all across the U.S., in addition to services provided online. Many of the Wells Fargo banks are even open on Saturdays to help customers with their banking needs. And, of course, I probably don't have to remind you about the institution's credibility and sterling reputation.

To recap, ask youself these questions:

1. Do I meet the reverse mortgage age requirement?

2. Do I fully understand the definition of reverse mortgage?

3. Do I understand the reverse mortgage's pros and cons?

4. Have I found the best reverse mortgage for my situation?

A reverse mortgage can provide cash for home equity.
A reverse mortgage can provide cash for home equity.

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Comments 30 comments

Charles 6 years ago

Very interesting topic. Glad they capped the fees!


Pamela99 profile image

Pamela99 6 years ago from United States

An interesting hub. I didn't know much about reverse mortgages and really don't want one unless I had no choice. I know they have been a life saver for some people.


Veronica Allen profile image

Veronica Allen 6 years ago from Georgia

I too didn't know much about this subject. You kept it simple and easy to understand. Thanks for that.


Unchained Grace profile image

Unchained Grace 6 years ago from Baltimore, MD

Habee, my landlady is 57 and is currently in a nursing home because of a stroke. A stroke which just affects movement and not mind. Wells Fargo is her mortgage company and I know she owns at least 90% of the single family home we reside in. My wife and I may be asked to intercede on her behalf and I hadn't considered the reverse mortgage issue.

This, Habee, is a serious Godsend. This is a real issue here and decisions have to be made very soon.


habee profile image

habee 6 years ago from Georgia Author

Thanks for reading, Charles!


habee profile image

habee 6 years ago from Georgia Author

Pam, I want one as soon as I turn 62!!


habee profile image

habee 6 years ago from Georgia Author

Why, thank you bunches, Veronica!


habee profile image

habee 6 years ago from Georgia Author

James, if she's only 57, I don't think she can get a reverse mortgage, but she might be able to get a home equity loan.


Hello, hello, profile image

Hello, hello, 6 years ago from London, UK

I don't know about America but in England I read some terrible stories whereby people all over sudden found themselves having a debt of unbelievable £30,000 when borrowed £5,000. Well worked through, habee, and well written with lots of helpful informations.


ethel smith profile image

ethel smith 6 years ago from Kingston-Upon-Hull

Good financial advice is so useful these days.


habee profile image

habee 6 years ago from Georgia Author

I've never heard of that in the US, HH, but that's terrible!


habee profile image

habee 6 years ago from Georgia Author

I hear ya, Eth! How ya been?


Cheeky Girl profile image

Cheeky Girl 6 years ago from UK and Nerujenia

This is a great hub, habee. Some good info on reverse martgages in here. Over this side of the pond, you don't hear much of this variety of mortgage. All the more reason to study how it works! : )


habee profile image

habee 6 years ago from Georgia Author

Thanks for stopping by, Cheeky!


Angela Blair profile image

Angela Blair 6 years ago from Central Texas

Great info, Habee and great deal for those with home equity to spend the "golden" years in comfort and security. I have friends who have gone this route and they're very happy with it. Best, Sis


habee profile image

habee 6 years ago from Georgia Author

Howdy, Sis! I'll be at the bank on my 62nd birthday - if I'm still alive!


quildon 6 years ago

Great hub, habee. I am considering a reverse mortgage, but I don't know if I would qualify since I have very little equity in my house.


habee profile image

habee 6 years ago from Georgia Author

You might still qualify, Quildon. check it out.


elf_cash profile image

elf_cash 6 years ago

Thanks for sharing about the Wells Fargo reverse mortgage for seniors.


habee profile image

habee 6 years ago from Georgia Author

You're welcome Elf! We're thinking about a reverse mortgage for seniors - hubby is 63.


HomeBuyerHelp 6 years ago

You've a great hub content. it's very precise and informative. Thank you for sharing it. Please do more informative article. Thanks again!


habee profile image

habee 6 years ago from Georgia Author

Wow! Thanks, Homebuyer!


Doll 6 years ago

I hear some good and some not so good things about reverse mortgages. I think the not so good things come as a result of the homeowner not fully understanding how the reverse mortgage works and they choose the wrong option. What you never hear about is how to buy property that was a reverse mortgage when the senior leaves the property because of reasons such as going to a nursing home or worse.


habee profile image

habee 6 years ago from Georgia Author

Doll, I think you're right. A reverse mortgage isn't right for everyone.


trevor 6 years ago

Reverse mortgages are not right for everyone but they are right for some. I don't advocate moving out of your house and renting a new place just so your kids can get the most out of your inheritance.


habee profile image

habee 6 years ago from Georgia Author

I agree, Trevor - reverse mortgages aren't for everyone. Thanks for reading!


Reynold Jay profile image

Reynold Jay 5 years ago from Saginaw, Michigan

I see the ads on TV all the time and this was an opportunity to read something on it and it sounds worthwhile for those who neeed it. With all your writing awards, I'd be interested if you would take a look at HUB winner Arch' and give it a critical peek. It pretty well represents my voice and the way I write things. Too much dialog? Too little of this or that? Please...? RJ


habee profile image

habee 5 years ago from Georgia Author

I read your account of Arch. Great job!


Richard 3 years ago

Great job. I was looking for reverse mortgage in georgia. The site is is good. http://www.reversemortgagelendersdirect.com/georgi...


fpherj48 profile image

fpherj48 2 years ago from Beautiful Upstate New York

habee...There you go, listening in on my conversations! I was surprised this hub jumped out in front of me. I wanted this info and I'm glad you wrote this, because I know you and trust your excellent ability to research.

Now I feel armed to trudge on forward. There's a lot to learn I'm sure and I'm a very cautious, proactive person by nature anyway. I'll keep on digging until I find every answer to every question and then some.

You've helped me with a kick start.......Thanks so much!.....Up++++

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