November 21st, 2015 7:26 AM by Dale DiGennaro
Have you heard about reverse mortgages, but wondered if they were for you? If so, here's a rundown on what they are and whom they can benefit.
They are called a reverse mortgage because instead of an individual paying a lender, the lender pays the homeowner while repayment of the loan is deferred. Sometimes they are also called a life mortgage. A reverse mortgage differs from other loans in that to qualify, there are usually no income requirements or credit checks. Additionally, the state of your health can not affect your participation.
Typically, borrowers 62 and over who own their homes outright are eligible for reverse mortgages. These loans can be a huge benefit as they convert some of the home's equity into tax-free money without your selling the home or relinquishing the title. The money from a reverse mortgage can be used any way you choose: for monthly living expenses, a vacation, remodeling, or any other financial needs you have.
There are often four payment choices in reverse mortgages:1) Lump sum2) Monthly amount for a set period3) Line of credit 4) A combination of any of the above
The amount of money you can receive may be affected by your area's lending limit, your home's value, interest rates, your age (or the age of the youngest spouse) and the amount of equity in your home. Your reverse mortgage repayment typically is deferred to when your home is sold, you move out, or upon the death of the last surviving borrower.
Many people of retirement age own their homes outright but can't afford to maintain their retirement without the assets tied up in their homes. For those individuals, a reverse mortgage may be the perfect solution. But keep in mind that interest accrues over the entire life of the loan, and will have to be repaid after your home is sold. The good news is, as long as you live in the home and pay the property taxes & insurance, you can never outlive a reverse mortgage. If you're interested in a reverse mortgage, give me a call at (707) 252-2700. I'll be glad to go into more detail. And as always, there's no obligation.
We'd love to help! Are you ready to fill out a loan application today? Just curious about rates? Regardless, I'd be glad to help you go over your options. Give me a call at (707) 252-2700 or visit me online.
It's better not to stuff your turkey at all — it's very hard to get the temperature high enough in the stuffing without turning the breasts into turkey jerky. It's much easier to cook the stuffing in a separate pan. But, if you must stuff your bird, be sure to stuff it right before you put it in the oven. Leaving the stuffing in overnight greatly increases the risk of foodborne illness. Use a meat thermometer to insure that your stuffing reaches 165 degrees.
Many Black Friday deals don't require you to wait in line starting at 4 in the morning. Check your favorite retailers' websites to see what they offer online. Many of these deals start on Thanksgiving day.
Increased expectations for additional stimulus in Europe were positive for mortgage rates over the past week. The economic data and the Fed Minutes had little impact. Mortgage rates ended the week a little lower.
While Wednesday's Minutes from the October 28 Fed meeting caused little reaction, the Minutes from the October 22 European Central Bank (ECB) meeting released on Thursday revealed a likely need fo radditional stimulus to boost the economies in the region. Investors raised their expectations that the ECB will announce an expansion of its bond buying program at its next meeting on December 3rd. Added demand from the ECB would lower bond yields around the world, including U.S. mortgage-backed securities (MBS). Mortgage rates fell a little on the possibility.
The housing sector data released over the past week revealed small declines, but this was mostly due to multi-family activity.Single-family housing starts remained near the best levels of the year. Single-family building permits, a leading indicator of future activity, rose to the highest level since December 2007. The NAHB Housing Index showed that home builder confidence dipped slightly in November from the multi-year highs seen in October.
Next week, Existing Home Sales will be released on Monday. The second estimate for third quarter GDP will come ou ton Tuesday. Wednesday will be a packed day ahead of Thanksgiving with Durable Orders, New Home Sales, Personal Income, and the core PCE price index .Core PCE is the Fed's preferred inflation indicator. In addition, there will be Treasury auctions on Monday,Tuesday,and Wednesday. Mortgage markets will be closed on Thursday and will close early on Friday in observance of Thanksgiving.
Give us a call at (707) 252-2700 or send us an email at dale@clgroup.net. We're glad to answer questions — no obligation, of course. NMLS# 298353 | 845079 BRE# 966782 | 944064