David J. Weed Realtor ®, Owner, Broker
Mortgage Banker

Simplifying the Real Estate, Property Management and Mortgage process so you can get on with your life. No pressure, no strings.

DVA

Reverse Mortgage or not to Reverse Mortgage?

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1112There’s been a lot of talk about the Reverse Mortgage. I feel it’s a great thing, if you fit the mold. A Reverse Mortgage is a special type of mortgage that enables homeowners 62 years or older to strategically tap into their home equity. There are good and bad reverse mortgages so it’s important that do your homework, work with somebody who you feel is trustworthy and make sure you get into one of the more preferred reverse mortgage products.

Three things are needed to begin, your age(s), current loan(s) balance and the property value. That’s it! One great thing about a reverse mortgage is you no longer will have mortgage payments, you only need enough money to pay property taxes and homeowners/fire insurance and you may be able get those funds from the Reverse too. All funds are tax free.

Yes, you can get into a brand-new home with a reverse mortgage. Yes, a 1 to 4 unit building qualifies if one unit is your primary residence. Yes, a line of credit can be established. Yes, you can receive monthly payments. Yes, you can get funds for a new roof, kitchen remodel, fence or that vacation you’ve been wanting. Seniors need funds to stay in their home (age in place).

I’ve had clients pay off their current loan(s), do needed/wanted home improvements, receive ongoing monthly payments, receive a line of credit(which can grow in value over time) and go on vacation, all with a Reverse Mortgage.

It will probably become a very popular way for many to retire, yes retire! The Journal of Financial Planning suggests using Home Equity to Supplement Retirement Income. Here is the link:http://www.nrmlaonline.org/rms/research_papers.aspx?article_id=1117

You can be late or really late on your current mortgage and still qualify for a Reverse Mortgage. There is no credit score Criteria. One day after a Bankruptcy you may qualify. Get educated. Visit Brokerdavesblog.com or call me direct at 925-360-1222

The mortgage must be repaid in full when the last remaining borrower permanently vacates(industry standard is six months, with 2-3 month extensions as needed) the residence or if/when the Reverse Mortgage is paid off, any remaining equity in the home belongs to your heirs. You make the final decision to proceed with a reverse mortgage or not. You owe it to yourself to check it out. Get educated, a Reverse Mortgage may change your life.

VA Home Buy/REFI, No Down, No MI & Up To $1.5 Million

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DVAMy dad served in the Korean War. I don’t believe he ever used his VA to buy a home. However this market is just a little different from the 1960’s. Purchasing or refinancing real estate today is involved. VA, or the DVA has some great options for veterans. No down payment, no monthly mortgage insurance (MI) premium or upfront MI, sometimes no reserve money requirements, credit scores as low as 620 and loan amounts up to $1,500,000. There are a variety of fixed or adjustable rate options. The seller or the lender may contribute to the veterans closing costs too!

Many in the lending/mortgage business don’t offer or consider a VA purchase or refinance loan. Many veterans did not use their VA when purchasing their homes and sometimes forget it’s a great refinance option. Many veterans did not use their DD 214 or VA eligibility to refinance and are now paying MI. Are you a veteran with less than 20% equity?  Are you a veteran paying monthly MI? You’re not alone. Your loan to value is still over 80%, you have little or no equity and may not be aware or did not consider the fact that a DVA refinance is an excellent option and has no MI.

There are some other non-VA option conventional loans called self-insured or lender-paid MI loans where the MI is incorporated into your interest rate. There are still refinance options when you have 20% or less equity in your home. It’s important to have knowledge of all loan options available to you, whether it’s VA Conventional, Jumbo, FHA or one of the other many loan programs available today, when you’re looking to Refinance or Purchase a primary residence, second home or investment property.

I feel it’s important to use a mortgage broker, typically we have the best loan options available. A mortgage broker can offer a full array of VA, Conventional, Jumbo and other types of financing like Reverse Mortgage and Equity lines. It’s important to use a mortgage broker, like myself, when you’re shopping for your loan because we’re able to offer many more options than a bank or credit union.

Some Veterans may think interest rates are higher for a VA loan and today that’s not the case. It’s important to know all your loan options. Then, the best move will stick out like a sore thumb. I have the same goal as you, the lowest rate, at the lowest cost, for your loan circumstance. 

Contact me anytime.