MORTGAGES
We have selected Wells Fargo Home Mortgage as
our primary partner in Florida. Mortgages can be obtained via a toll
free number throughout the state. Wells Fargo offers one stop shopping and a
Closing Guarantee. They are known for
their exemplary service and competitive rates.
Click here
to go directly to the Florida-Retirement.Net/Wells Fargo website.
The following information is provided courtesy
of Wells Fargo Home Mortgage.
Today’s
Home Mortgage: A Blend Of Tradition And Innovation
The
basic types of mortgages are pretty much the same, but plenty of other things
have changed quite a bit.
Mortgage
terms now range from a short 10 years to a comfortable 30 years — and you can
select a term anywhere in between. There are even options designed to make down
payments, closing costs, and your monthly payment system fit comfortably into
your personal financial picture.
More
Options Than Ever
There
seem to be as many different types of home financing today as there are
different types of homes. While there are also a lot of home financing
companies, no lender offers more choices than Wells Fargo Home Mortgage, with
our full range of financing programs to answer individual homebuyer needs. In
fact, Wells Fargo Home Mortgage provides funding for one out of every fourteen
homes financed in the United
States.
In
addition to a wide selection of traditional mortgages, we offer an attractive
menu of innovative programs:
• New
construction financing.
•
Specialized options for homes that require renovation.
•
Programs designed specifically to benefit current Wells Fargo customers.
Your
Wells Fargo Home Mortgage consultant can recommend the financing solution
that’s exactly right for you.
•Fixed-Rate/Adjustable-Rate
Loans:
One of the first decisions you’ll need to make is whether you want a
fixed-rate or an adjustable-rate loan. The advantage of getting a fixed-rate
mortgage is you’ll know exactly what your principal and interest payments will
be throughout the life of your loan. But if you think interest rates are likely
to go down in the long term or if you’d like to get a slightly lower rate for
lower payments in the short term, an adjustable-rate mortgage may be for you.
As its name implies, an adjustable-rate mortgage adjusts periodically with the
going rate of interest. It may be a good choice if you’re looking to purchase a
second home right now with plans to use it for retirement later. That way, if
rates go down along the way, you’ll be able to take advantage of them.
If
you’re already settled into your retirement home, locking into a good fixed
rate may be your best option so you’ll be able to budget your monthly mortgage
payments well into the future.
•Jumbo
Loans:
Jumbo loans allow homebuyers to borrow larger amounts of money for
more expensive homes. Jumbo loan amounts exceed the maximum conventional loan
amount guaranteed by the federal government. The conventional loan amount is
$417,000 ($625,500 in Alaska and Hawaii). Wells Fargo
Home Mortgage offers a wide variety of jumbo mortgages at very attractive fixed
and adjustable rates. We also have options that can help you avoid paying the higher
jumbo rate by blending a first and second mortgage that add up to a jumbo loan
amount.
•Interest-Only
Loans:
This type of financing can give homeownership more purchase power
for the short term by allowing you to make smaller, interest-only monthly
payments for the first several years of your loan term. It can be a practical
option for buying a second home, because you can keep the payments low while
you’re getting the rest of your financial plans for retirement in order. However,
you may not build equity unless principal payments are made during the
interest-only period.
•Renovation
Loans:
This is a great choice if you’re looking to do some major renovations
whether you are looking to convert your current home into a retirement home or
to purchase a new home and update it. With a renovation loan, you can borrow
based on the value the home will have once your renovations are complete. That
means you can qualify for a larger loan amount than you could get to buy the
unimproved property. It’s an excellent option if you want to hold on to your cash
reserves rather than use them for home improvements.
•Low
Or No Down Payment Loans:
This option allows you
to finance all or part of your down payment (“roll it into the loan”). So, if
your money is currently involved in some high-yield investments, you can leave
it there. Any cash reserves remain untouched too, for unexpected expenses. A
low down payment loan may be just what you need to purchase a second home before
you retire.
Which
Option Is Best for You?
To
get a better idea of the option that’s best for you, speak to your local Wells
Fargo Home Mortgage consultant today. You can also use our exclusive Home
Loan Workbench® tool to run some numbers online at
http://www.wellsfargo.com/mortgage. This tool can help take the guesswork out
of shopping for a mortgage with personalized loan recommendations, current rate
quotes, and detailed closing cost estimates.
Get
An Edge — Get PriorityBuyer® Preapproved
A
written preapproval from Wells Fargo Home Mortgage makes you a Priority
Buyer® in the eyes of real estate agents and sellers. That means you can
expect preferential treatment and attention because they know you already have
your financing in order. Preapproval has other benefits, as well:
• You
know exactly how much you can afford to spend on your new home.
• You
won’t waste time and energy looking at properties that are out of your price
range.
•
There’s no waiting to see if you qualify to purchase the home you want.
Even
if your asset level virtually guarantees your ability to get a loan,
preapproval offers a privacy advantage you may want to have. Since the lender
has certified that you have sufficient funds to be approved for a loan, you
don’t have to reveal anything else about your financial situation.
Some
Possible Loan Approval Challenges
Overcome
Obstacles With Wells Fargo Home Mortgage
If
you have a good job and a history of consistently paying your bills on time,
chances are good that you won’t have any problem qualifying for a loan program.
But, what if:
•
You’ve had a few bumps in your credit history?
• You
earn a good living, but you’re self-employed?
•
You’re moving to the United
States from another country?
Poor
credit, no credit, and income-documentation issues don’t mean you have to give
up on your retirement dreams. Wells Fargo Home Mortgage can help you with
financing programs that have flexible qualifying guidelines.
Documenting
Income
One
of the key parts of applying for your loan will be providing your income
sources. As a retired individual, this may be a challenge for you, but it’s not
a challenge that can’t be met. There are a variety of sources your income can
come from, including:
•
Pension Benefits.
• 401(k).
•
IRAs.
•
Savings.
•
Social Security Benefits.
•
Alimony.
•
Rental Income.
If
you’d like to find out more about what sources of income will help you qualify
and what will be needed to document that income, contact your local Wells Fargo
Home Mortgage consultant today.
Addressing
Past Credit Problems
Credit
problems can happen for any number of reasons — divorce, medical bills, and
unexpected expenses, just to name a few. At Wells Fargo Home Mortgage, we
understand that life happens, and you’re not in control of every financial
obligation that comes your way. We can work with you and help you look forward
— beyond your credit history to a secure future — with home financing programs
that offer flexible guidelines. Even if you’ve had a foreclosure or bankruptcy in
the past, you can move on and enjoy the retirement lifestyle you deserve. For
more information on credit renewal options, see our guide on overcoming credit
obstacles.
Is
It Smarter To Just Pay Cash?
A lot
of people really look forward to making their last mortgage payment. For them,
it’s as much of a milestone as buying a house in the first place. There’s no
denying the sense of accomplishment that comes with having paid a mortgage in
full. But while it may sound like the ultimate in financial freedom, paying off
an entire mortgage may
not be the wisest decision for everyone.
The
federal government allows qualified retired married couples a one-time
exemption from capital gains taxes — up to $500,000 when selling a primary
residence — that means many people may be able to buy a retirement home
outright. But as appealing as it may sound to own your house free and clear,
there are some possible drawbacks.
• If
you tie up all or a large portion of your money in your house, will you have
enough cash available to cover unexpected financial needs?
•
Will paying off your mortgage limit your ability to enjoy the retirement of
your dreams?
•
Could the money be put to better use generating additional income through another
investment?
If
you commit too much of your cash reserves, unexpected expenses can become very
stressful. Before you go the total payoff route, think about these questions:
•
Have I paid off all my other debt?
• Am
I making the maximum contribution to my tax-deferred retirement plans?
• Do
I own a stable, diversified portfolio of investments?
• Do
I have plenty of cash on hand to cover emergencies like long-term unemployment,
major unexpected medical bills, or major home repair bills?
The
payoff decision is a tough one. So talk to a professional financial planner and
your
tax advisor first.
To
access Wells Fargo’s complete “Your Retirement Homeowners Guide,” learn more
about the Florida mortgage rates,
access Florida mortgage calculators,
or to speak with a Wells Fargo Home Mortgage Consultant, click
here.
