Reverse Mortgages

Cleaning for a Reason-Chemo recipients FREE Service

Fri, 13 Nov 2009 13:23:29 -0600

This is a great service I never knew was available. I checked the Gloucester County, NJ area and there are some local businesses that are on board with this great free service. Share this with anyone you can! ~ Steve

Via Jane Cross (Homes By Cross, inc.):

If you know any woman currently undergoing Chemo, please pass
the word to her that there is a cleaning service that provides FREE
housecleaning - 1 time per month for 4 months while she is in treatment.

All she has to do is sign up and have her doctor fax a note confirming the treatment. Cleaning for a Reason will have a participating maid service in her zip code area arrange for the service. http://www.cleaningforareason.org

Please pass this information on to bless a woman going through Breast Cancer treatment. This organization serves the entire USA and currently has 547 partners to help these women. It's our job to pass the word and let them know that there are people out there that care. Be a blessing to someone and pass this information along.
Jane Francis Cross 704-608-0228
Broker/Owner Homes by Cross
Serving Charlotte NC Real Estate and Relocation Needs since 1994.

A full service brokerage covering South Charlotte real estate, Ardrey, Ballantyne, Fort Mill, Huntersville, Indian Land, Lake Norman, Lake Wylie, Marvin, Matthews, Mint Hill , Pineville, Stallings, Uptown Charlotte, Waxhaw, Weddington, Wesley Chapel homes for sale.

Home Inspections: 4 Tips to Avoid the Buyer and Seller Freak Outs.

Mon, 13 Jul 2009 21:59:10 -0500

Check out these home inspection tips concerning both sides of the settlement table.

Via Christopher and Stephanie Somers - Realtors - Philadelphia Real Estate (Owner - RE/MAX Affiliates):

Home Inspections: 4 Tips to Avoid the Buyer and Seller Freak Outs.

Home Inspections - The process of a Seller waiting for the results of a Home Inspection is incredibly stressful. Every Realtor knows that no matter how New or Old a property is, things pop up in Home Inspections. I do not think I have ever seen a Home Inspection Report that came back perfectly clean. Folks, perfect is an imaginary word !

Many Buyers do not take into consideration how Home Inspections effect the seller and vice versa. Each party has their own list of things to worry about. It is a stressful process !! But whether you are a Buyer or a Seller take a step back. Take a deep breath. There are a few points you may want to think about. Are you a Buyer doing every possible inspection known to man-kind? Perhaps you are Seller psyching your self up for an invetable Home Inspection from Hell ! There may be a way to diffuse knee-jerk and emotional reactions to these Home Inspections.

Avoid the Freak Out! Get Perspective !!

1) Understand and Sympathize: The buyer is nervous too ! They have heard horror stories about "Shady Sellers". They have watched "The Money Pit" like 1 million times. They are extra sensitive and often on the defensive when going into a purchase. They feel that they can not afford to make a mistake. Buying and selling a home is the largest financial transaction an average person will ever do in their entire life. It is a big deal.

2) Money Ain't Free: Remember Sellers... The Buyer is spending extra money on all of the inspections. That money is not going to come back to them no matter what. That must mean they are looking for something of significant value in return. People do not spend money just to play games. (Dave & Busters is the exception of course.) Buyers get independent Home Inspections with the expectation that they will receive solid information. Buyers who do inspections do not want to sabotage the deal ! They want to test the product they are buying. Mind you the procedure may feel more like root canal to both parties. It is something that the buyer must do out of due diligence.

3) You've Got The Power: The Seller can reject the results of the inspection as well as refuse to correct or address anything that comes up on the inspections as the agreement of sale stipulates. The Buyer can do the same. If you cannot come to a mutual agreement regarding the inspections then the deal can end.

4) What is Done in Secret will be Brought into the Light: What I mean by that is Disclose! Disclose! Disclose! is as important as Location! Location! Location! when it comes to Real Estate. Whatever you know about your property, good bad or ugly, disclose it ! Whatever comes out about the property through inspections must be disclosed to future buyers if the deal never settles. Reveal everything and less harm will be done than if you do not disclose the truth about your property. Honesty will negate post settlement legal action. It diffuses the stress involved.

We hope these 4 tips are helpful to both buyers and sellers ! If you find the information informative, please subscribe to our blog ! Is only a click away ! If you are in our neck of the woods, please contact us via phone or email or ask about our new office location in Northern Liberties !

If interested in buying or selling properties in Philadelphia, contact Chris and Stephanie Somers at thesomersteam@yahoo.com or 215-400-2612 . You can connect with us on Facebook and Twitter . For investment properties, check out our new investor site at Philly Investor Hub and ask us about Philadelphia Foreclosures and Short Sales .

The Somers Team - Philadelphia Real Estate - our main site

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Areas of specialty include Northern Liberties, Old City, Center City, Fishtown, Graduate Hospital, Art Museum, Queen Village, Pennsport, Old Kensington, Port Richmond, Bridesburg, Society Hill, Loft District, Spring Garden and more !

COMMON SENSE SPOKEN FROM A GOVERNMENT REPRESENTATIVE!

Fri, 10 Jul 2009 10:03:01 -0500

Good common sense speak from a government rep - thanks Lenn for sharing and letting us know at least someone in higher government has a clue! :)

Via Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate:

ELIZABETH WARREN, CHAIR OF THE CONGRESSIONAL OVERSIGHT PANEL.

Professor Warren has been a voice of sanity among the purveyors of a preponderance of prepared, befuddled, concealing, deceiving, whitewashing and self serving statements from Congress and the Executive offices charged with representing the American home owners. Or, do they really represent us?

This morning I heard a statement from the mouth of a government spokesperson that resonated as so simple, so pithy, so true, it bears repeating.

"The American economy will not recover until the American home owners can recover."

IT WAS A VOICE IN THE WILDERNESS!

Professor Warren clearly understands that the key to the recovery of the economy rests on the American consumer. No doubt she also understands that no economy can reach the productivity goals and expectations of the prognosticators when about 20% of the American consumer has been literally taken out of the economy in order to pay for a home that is draining the life blood from their budget, by loss of credit due to loss of home, loss of income due to loss of job and so much more injury to the American consumer.

Wall Streetis not the American economy.

The banks are not the American economy.

The consumer is the American economy.



                                      "Honey, are we going to be able to recover from our financial mess?"

                                        "Perhaps Dear, if the folks in charge ever begin to think about us."

Courtesy, Lenn Harley, Broker, Homefinders.com, 800-711-7988.

Thanks and Appreciation this July 4th

Fri, 03 Jul 2009 11:17:15 -0500

Wishing everyone a happy and safe Fourth of July. May we NEVER forget the reason we celebrate this holiday and the many souls that gave their lives, and those that still do, for our freedom.

My heart-felt appreciation and thanks go out to those men and women that risked it all. May you never be forgotten in our hearts and by our actions.

God Bless You All

Steve Kappre is a Mortgage Planner with Treasury Mortgage. Steve specializes in;

• All areas concerning First-Time Home Buyer Mortgages, grants, down payment assistance, police and fire loans, rehab loans, and more.

• Reverse Mortgages

• Equity Management strategies for high-end homes and high net worth individuals.

Contact Steve Kappre directly at 856-419-3561 or at www.stevekappre.com

Energy Efficient Credits and Helpful Energy Links

Sun, 03 May 2009 15:14:11 -0500

You may be considering some upgrades to your home this year. If possible, why not try and make your upgrades "pay you"? The government is offering credits for up to 30% of the cost, up to $1,500. For items such as solar energy systems, you can receive a 30% credit with no limit. Our government cares about being "Green" and so wants you to purchase energy efficient items for your home; Items such as AC units, storm doors, windows, a new roof, water heaters, and more.

You also may be wondering if now would be the best time to upgrade, since you can capitalize on the tax credits offered through the latest stimulus package. Certainly purchasing the right product to qualify for this credit is very important. This will help you assess how to obtain the credit, or to help you decide if it is worth spending your extra hard earned money on more efficient models.

The Energy Star website has a wealth of information. Be sure to check it out.

Find more information at the websites below.

Energy Star main website: Energy Star Website

Energy Star Tax Credit Site: Energy Star Tax Credit Info

Energy Star FAQ's: Click Here

How the New Stimulus Bill Has effected Energy Tax Credits: Click Here

Products: Click Here

AC Unit Qualifications: Click Here

Steve Kappre is a Certified Mortgage Planner serving all 50 states, focusing in South Jersey: Burlington, Gloucester, Camden, and Salem County. Steve specializes in;

• All areas concerning First-Time Home Buyer Mortgages, grants, down payment assistance, police and fire loans, rehab loans, and more.

• Reverse Mortgages

• Equity Management strategies for high-end homes and high net worth individuals.

Contact Steve Kappre directly at 856-419-3561 or at www.stevekappre.com

Pink is My Favorite Color...or NOT

Sat, 02 May 2009 13:49:36 -0500

If you are in Nashville, TN area and/or have friends/family close to there, keep in mind this blog post. The world is far smaller today then ever. Let's use it for something good! :)

Via Missy Caulk-Ann Arbor- Realtor(R)- Ann Arbor Real Estate (Keller Williams-Ann Arbor):

Tuesday my husband was given a pink slip from Belleville High School. He is history teacher and social studies teacher. He is tenured.

I was shocked

The schools in Michigan are handing out a lot of pink slips including: Flint 257, Detroit 600, Pontiac everyone, Lansing 170.

Last year at Belleville High School, (where he teaches) they didn't let enough teachers go so in October after the enrollment count they had to redo classes. Mike was not one of them.

When they change the class sizes some students go and some classes are dropped and it is disruptive. So this year they are letting 90 go and then hiring back.

If you are pinked slipped and hired back you can still be let go in October after the enrollment count.

Can you stay unstable?

I don’t want your sympathy but your advice, prayers and help.

I want to see if Social Media (which we all hail) can get my husband a job.

In Tennessee

Most of you know I am from the South and we have hoped to move back there when we retired if not before.

So I am asking you if you know anyone in Tennessee, the Nashville Area to please pass along my husband’s name. We have looked and there are 5 History teaching positions available in the Nashville, Williamson County Area, which he is applying for.

However, it is not what you know but WHO YOU KNOW.

A little bragging:

My husband is an outstanding teacher. Every year his classes fill up and if a student is removed for scheduling issues…mom and dad demand they be put back in Mr. Caulk’s class.

Mike does all of his lesson plans on Power Point, uses YouTube and the news this week by Uncle Jake. He is a fun, and an engaging history teacher. Making the subject come alive for his students.

Everyday at school for 5 years, he would check out the over-head projector so this year, the administration bought him one. I can count on my ONE hand the days he has missed in the last 6 years, even returning the day after he had stints put in his heart.

Social Media is more than Twitter, more than FaceBook it is like attending a Chamber of Commerce meeting that extends outside four walls.

Can Social Media help find Mike A JOB?

They say if you want to adopt a baby tell everyone you know. So I am telling everyone I know. Any help would be so appreciated, especially if you know anyone in the Nashville area that teaches, a principal or works in Administration. ( If you do I will email you his resume.)

When one door closes, another one opens so we are thinking and hoping this might be an open door to move and settle in TN. First of all we are believing God will open a door if we are to move forward with a job in Tn. But, we know He works through people, so hence my appeal to you here on Activerain.

I figure if Jay McGullicuddy can find his birth mother and Brad Andersohn his brother,....

ALL things are Possible on Activerain.

AnnArborRealtor@gmail.com

This Bluebird Found His Home Quick!

Sun, 26 Apr 2009 20:40:12 -0500

The other day my dad and I put up a bluebird house in my backyard. We had seen about 6 bluebirds flying around as a group for a few weeks, and figured we'd give it a try. So he found a design and graciously built one for me. He brought it over and we spent a few minutes digging a hole for the post and putting it up.

The funny thing is, is that I hadn't seen the bluebirds in about a week or two. But literally 1-2 minutes after we put the birdhouse up, I came inside, washed my hands, and looked out the window and there it was. It was practically magic.

Don't we all wish finding a home could be that easy!

Steve Kappre is a Certified Mortgage Planner with Treasury Mortgage, a subsidiary of Aurora Financial Group, serving all 50 states, focusing on Gloucester, Camden, and Salem County, NJ. Steve specializes in;

• All areas concerning First-Time buyers; First-Time Buyer mortgages, grants, down payment assistance, tax credits, police and fire loans, rehab loans for first time buyers, and more.

• Reverse Mortgages for seniors age 62 or older.

• Equity Management strategies for high-end homes and high net worth individuals.

Contact Steve Kappre directly at 856-419-3561 or at www.stevekappre.com

Prepare for Homeownership, Months in Advance

Sat, 18 Apr 2009 12:31:54 -0500

More times than not, home buyers jump right into the home buying process ill-prepared. Maybe they see an open house sign. Or maybe their co-worker is buying a home and they want to be part of the action. In any case, a little research and preparation can make a huge difference in the success of your home-buying experience.

Here are a handful of tips to consider if you are planning on buying a home.

Talk to a mortgage professional months before you plan to buy. Talking to an experienced professional can help you with countless items such as: maximizing your credit score, preparing ample savings in your bank account, the education on and avoidance of costly fees, the avoidance of costly actions many people make that hurts their chances of receiving financing. You will want to talk about a few loan programs that are best for you, and the pros/cons for each one. Try to keep an open mind. A true professional will make you aware of how to make your purchase successful. Lastly, ASK QUESTIONS! Your questions can only help make the process smoother as you work as a team with your mortgage adviser.

Seek out a knowledgeable, hard working Realtor. Do your own research regarding the jobs and responsibilities of a good, seasoned real estate agent. Referrals from friends are fine, as long as you know what kind of service you should be receiving from your Realtor. Educating yourself beforehand is important to know what to look out for. Using the "Top Agent" in your area doesn't necessarily result in good service or a profitable transaction. Likewise, working with a newer agent doesn't equate to a lower quality outcome. You want qualities such as a strong negotiator, someone who will spend the time with you to explain each situation, and someone who is confident in their advice. There are part-time Realtors that give far better advice and service than some top producing Realtors, so ask questions upfront about service standards, and be ready to hold them to their word.

Pay DOWN credit cards, but do not close them. Many people receive BAD advice to pay off and close their credit cards. This is BAD for your credit score. Likewise, paying off collections or judgments right before buying a home could have serious negative consequences for your credit score and for your chances of financing a home. It sounds counter-intuitive, but it happens fairly often. Many times it happens because a potential buyer received bad advice from a friend or an unaccountable mortgage/financial adviser.

These are just a few tips. To reitterate, make a successful home buying experience by educating yourself a little, and by sorrounding yourself with professionals that know what they are doing. It can take some effort to find the right people to work with, but it is well worth it and there is a good chance you will use that professional for life.

• All areas concerning First-Time buyers; First-Time Buyer mortgages, grants, down payment assistance, tax credits, police and fire loans, rehab loans for first time buyers, and more.

• Reverse Mortgages for seniors age 62 or older.

• Equity Management strategies for high-end homes and high net worth individuals.

Contact Steve Kappre directly at 856-419-3561 or at www.stevekappre.com

Reverse Mortgages Overview

Thu, 05 Feb 2009 18:22:27 -0600

If you have questions about a reverse mortgage, you are in the right place! Here are the answers to the most commonly asked questions, as well as some additional information regarding the new reverse mortgage purchase options for seniors.

If you have any questions regarding a reverse mortgage, please feel free to contact Steve Kappre at any time.

Click Here To Contact Steve

• Reverse Mortgages for seniors age 62 or older.

• Equity Management strategies for high-end homes and high net worth individuals.

Contact Steve Kappre directly at 856-419-3561 or at www.stevekappre.com

Reverse Mortgages ~ Is Reverse Mortgage Income Taxable? - Part 5

Sat, 24 Jan 2009 22:38:17 -0600

Is My Reverse Mortgage Taxable?

Money received from a reverse mortgage is not taxable as additional income. Remember, this is a loan you are taking out. This is already your money, so to speak. A reverse mortgage does not affect regular social security income. A reverse mortgage also does not affect Medicare benefits.

One thing you may want to do to be certain a reverse mortgage does not affect any other important areas of your life, is to contact your local Agency on Aging. A toll-free number for this office is 1-800-677-1116. You may also visit www.eldercare.gov for more information.

~ Use it to make your retirement years the very best of your life. ~

How can I use my reverse mortgage money?

You can use the money you obtain from a reverse mortgage to do any number of things. Some ideas on how you may use your reverse mortgage money;

Home repairs or renovations
Home additions, such as a bedroom or a wheelchair ramp
Payment for medical bills or care
Payment for a grandchild's needs
Educational endeavors
Vacations
Buying a vacation home
Buying a vehicle
Virtually any other way you decide!

You can simply choose a reverse mortgage to get rid of your current bills, or you can be extravagant and travel the world. It really is up to you. You can use it to make your retirement years the very best of your life.

We hope you find our future reverse mortgage posts informative as well. Stay tuned.

If you have additional questions or need immediate assistance, feel free to call Steve Kappre on his cell phone at 856-419-3561.

• All areas concerning First-Time buyers; First-Time Buyer mortgages, grants, down payment assistance, tax credits, police and fire loans, rehab loans for first time buyers, and more.

• Reverse Mortgages for seniors age 62 or older.

• Equity Management strategies for high-end homes and high net worth individuals.

Contact Steve Kappre directly at 856-419-3561 or at www.stevekappre.com

Reverse Mortgages - Purchase a Home with a Reverse Mortgage - Part 7

Wed, 28 Jan 2009 17:45:25 -0600

Purchasing a Home with a Reverse Mortgage.

For the most part, the paperwork and the guidelines regarding this mortgage are the same as those regarding the most common reverse mortgage, the Home Equity Conversion Mortgage (HECM), which is an FHA loan. The option to purchase a home with a reverse mortgage was set to be available January 1, 2009, although as of writing this article is still undergoing final guideline and FHA regulation. The purchase reverse mortgage came out of the Housing and Economic Recovery Act of 2008. (This may be the best thing to come from this Act, because frankly many other things failed miserably.)

The main benefit of purchasing a home with a reverse mortgage is because now with this option;

The purchaser does not have to qualify and close on a traditional mortgage, and than
Refinance into a reverse mortgage

Aside from the hassle of closing two loans, the home buyer would have to pay closing costs twice. OUCH. That's no way to treat our seniors!

Let's review some common reverse mortgage (HECM) guidelines.

Must be 62 years old
The property must be the borrower's primary residence
With a traditional reverse mortgage refinance, a fair amount of equity is required. With a purchase reverse mortgage scenario, the borrower must provide the monetary investment at closing from an allowable funding source.

* Allowable Funding Sources *

When purchasing a home using a reverse mortgage, the monetary investment will be for (at least) the difference between the maximum reverse mortgage amount allowed and the purchase price. This will vary based on the sales price of a home among other factors.

Example: If the sales agreement is for $100,000, and the maximum allowable amount for the reverse mortgage is 60% of the purchase price, than the borrower will be required to come up the difference, or 40% ($40,000), plus any applicable closing costs.

A Borrower may only use their own money or money obtained from the sale of property or other assets. This includes retirement accounts, the sale of a home(s), the sale of fine art, etc.

VERY IMPORTANT POINTS TO PONDER

With a reverse mortgage purchase, these items below are NOT allowed.

No discount points are allowed
There are no rate buy-down options
No gifts are allowed (as in, a financial gift from a relative)
No closing cost assistance (seller concessions)
No builder incentives
No seller contributions
No seller financing

Unlike traditional FHA financing, monetary gifts from family members are not allowed. You also may not obtain personal loans, cash advances from credit cards, or EVEN equity from a property's home equity line. Lenders are required to source all funds used in the transaction.

A home buyer may elect to put more money down than the minimum required, so that they can leave a portion of the reverse mortgage available as a home equity line for future use.

Real Estate Agents

If you are a real estate agent looking to help clients out that are utilizing a reverse mortgage to purchase a home, keep in mind these important factors:

Required repairs must be completed before settling on the home,
These repairs must be included in the purchase agreement,
The buyer can NOT put any money into repairs of the property before they own the home, and
All offers must be contingent on a satisfactory inspection conducted by a qualified inspector.

One of the factors I found interesting is that a reverse mortgage client may choose to cancel the transaction at any time prior to closing. This is not to say that they will not lose their deposit money, but they do have this option. One other difference in a reverse mortgage purchase loan versus a traditional reverse mortgage (refinance) is that there is no 3-day rescission period. Once settled, that's it.

This wraps up our series on reverse mortgages. If you would like to visit any of the other posts on reverse mortgages, check out the links below.

As always, if you have any questions or need any assistance at all, feel free to call Steve Kappre direct at 856-419-3561.

• All areas concerning First-Time buyers; First-Time Buyer mortgages, grants, down payment assistance, tax credits, police and fire loans, rehab loans for first time buyers, and more.

• Reverse Mortgages for seniors age 62 or older.

• Equity Management strategies for high-end homes and high net worth individuals.

Contact Steve Kappre directly at 856-419-3561 or at www.stevekappre.com

Reverse Mortgages ~ Who is Eligible? - Part 1

Mon, 19 Jan 2009 22:20:12 -0600

There are many general questions that arise regarding reverse mortgages. Some questions have to do with the safety and prudence of a reverse mortgage. Other questions may be about your current income, or credit. Seniors and their families need help understanding if a reverse mortgage is the best loan for a particular situation. Over the next few days I am going to answer some of the common questions regarding reverse mortgages. Feel free to post your questions below or contact me directly.

Who is eligible for a reverse mortgage?

There is little criteria in qualifying for a reverse mortgage since there are no credit requirements and there are no employment or income requirements. Here are the two main factors regarding eligibility for a reverse mortgage

You must be at least 62 years of age to qualify for a reverse mortgage. If you are married, than your spouse will also have to be 62 years of age (or older).
If you already own a home and would like a reverse mortgage (considered a refinance), you must have equity in your home. You may qualify if you have a mortgage currently on your home.

AS OF JANUARY 1, 2009, YOU MAY PURCHASE A HOME USING A REVERSE MORTGAGE. In this case, you would have to have the available savings to satisfy the down payment needed. These savings, for example, could be your personal savings, proceeds from the sale of a home, or a retirement account that you can withdraw from.

The most popular type of reverse mortgage is known as the HECM, or the Home Equity Conversion Mortgage. This is an FHA loan, which you may know is a government loan. Although this is an FHA loan, there are many differences between an FHA reverse mortgage loan (HECM) and a traditional FHA loan.

Stay tuned for more information regarding a reverse mortgage.

If you need immediate assistance regarding a reverse mortgage, please feel free to contact our office at 856-415-7720 and ask for Steve Kappre, the Reverse Mortgage Specialist.

• All areas concerning First-Time buyers; First-Time Buyer mortgages, grants, down payment assistance, tax credits, police and fire loans, rehab loans for first time buyers, and more.

• Reverse Mortgages for seniors age 62 or older.

• Equity Management strategies for high-end homes and high net worth individuals.

Contact Steve Kappre directly at 856-419-3561 or at www.stevekappre.com

Reverse Mortgages ~ Payment Options - Part 2

Wed, 21 Jan 2009 12:18:16 -0600

Last time, we learned about who can qualify for a reverse mortgage (see Reverse Mortgages - Part 1). This time we are going to discuss payment options and how much money someone can get with a reverse mortgage.

~ You will never have to make another mortgage payment ~

Payment Options

When you finance your home with a reverse mortgage, as a borrower you will never have to make a mortgage payment while you live in your home. You will of course be required to pay your taxes and home owner's insurance.

There are several ways to receive the equity in your home through a reverse mortgage. You can ...

Receive a lump sum after your new reverse mortgage has funded,
Receive a monthly payment from the mortgage company, or
Create a mix of the two above options, such as; receive a $5,000 lump sum after the loan funds, and use the rest of your equity to receive monthly payments from the mortgage company.

In the event were there isn't enough equity in a home to receive monthly payments or a lump sum, it is possible to finance (or refinance) the home simply so that a monthly payment will not have to be made. This alone can relieve a huge burden from a senior who is making payments from Social Security income or their pension. (We will talk about other income in a future article).

How much money you receive is determined by several factors;

Your age at the time you choose a reverse mortgage,
The amount of equity in your home,
The value of your home, and finally
Interest rates at the time.

Other factors could include what type of Reverse Mortgage you choose. The choice is often obvious when comparing your options.

We hope you find our future reverse mortgage posts informative as well. Stay tuned.

If you have additional questions or need immediate assistance, feel free to call Steve Kappre on his cell phone at 856-419-3561.

• All areas concerning First-Time buyers; First-Time Buyer mortgages, grants, down payment assistance, tax credits, police and fire loans, rehab loans for first time buyers, and more.

• Reverse Mortgages for seniors age 62 or older.

• Equity Management strategies for high-end homes and high net worth individuals.

Contact Steve Kappre directly at 856-419-3561 or at www.stevekappre.com

Reverse Mortgages ~ Expected Costs, Appraisals, and Title - Part 3

Sat, 24 Jan 2009 21:57:24 -0600

In this installment on reverse mortgages we will discuss a few items;

The expected costs of a reverse mortgage,
If an appraisal is needed, and
Who holds title to your home.

Expected Costs of a Reverse Mortgage

The costs of a reverse mortgage are very similar to that of a typical purchase or refinance transaction. Expect to pay an origination fee (often referred to as points), title insurance, government recoding fees, a mortgage insurance fee (for the Home Equity Conversion Mortgage - HECM, FHA's reverse mortgage), and other typical mortgage costs.

The one item that is more costly on a Home Equity Conversion Mortgage (HECM) is the upfront mortgage insurance fee. Upfront does not mean that it has to be paid out-of-pocket. Assuming the home has ample equity in it, all costs can be rolled into a reverse mortgage so that nothing out of pocket is needed. Expect the mortgage insurance premium to be about 2% of the loan amount.

Why Mortgage Insurance is So Important for Reverse Mortgages

The insurance premium you pay on a reverse mortgage is essentially more expensive because it insures something very variable, and that is the future estimated value of your home, and the potential cost that the lender could incur if you "outlive" the value of your home. As discussed in our previous reverse mortgage letter, once you obtain a reverse mortgage you will never have to make another payment on your home as long as you live in your home. This includes a situation where you are receiving monthly payments, and the value of your home is not there to support the payments. You will still be paid every single month. For this reason mortgage insurance is more costly on a reverse mortgage.

Appraisals

The current and future value of your home is one of the main factors in determining both your qualification for a reverse mortgage, and the amount of equity you can utilize. Since the income you receive from a reverse mortgage is based on your current and future equity, it is necessary to obtain an appraisal to value your home. The value of your home is based upon recent sales of similar homes in your area.

Who Holds Title to the Property?

A common myth is that when you obtain a reverse mortgage you no longer hold title to your property. This is absolutely not true. You hold title to your home just as you would on a regular "forward" mortgage.

We hope you find our future reverse mortgage posts informative as well. Stay tuned.

If you have additional questions or need immediate assistance, feel free to call Steve Kappre on his cell phone at 856-419-3561.

• All areas concerning First-Time buyers; First-Time Buyer mortgages, grants, down payment assistance, tax credits, police and fire loans, rehab loans for first time buyers, and more.

• Reverse Mortgages for seniors age 62 or older.

• Equity Management strategies for high-end homes and high net worth individuals.

Contact Steve Kappre directly at 856-419-3561 or at www.stevekappre.com

Reverse Mortgages ~ Counseling - Part 4

Sat, 24 Jan 2009 22:17:48 -0600

Reverse Mortgage Counseling

One of the wonderful things about reverse mortgages, is that everyone obtaining a reverse mortgage must go through counseling. Counseling is a time of education where you can ask as many questions as you like. You can also uncover some things that maybe you did not think about. Counseling must be done before you can obtain a loan.

In your session you will learn about alternative options to a reverse mortgage. You will also learn about the expected and estimated costs to obtain a reverse mortgage. It is great that this safeguard has been put into place to protect seniors from lenders that do not have intentions to work ethically with them.

You can get the name of a local agency to conduct this session from your reverse mortgage lender. If you do not have a reverse mortgage lender, you can also call AARP's toll free number at 1-800-209-8085, or HUD's Housing Counseling service at 1-800-509-4287.

We hope you find our future reverse mortgage posts informative as well. Stay tuned.

If you have additional questions or need immediate assistance, feel free to call Steve Kappre on his cell phone at 856-419-3561.

• All areas concerning First-Time buyers; First-Time Buyer mortgages, grants, down payment assistance, tax credits, police and fire loans, rehab loans for first time buyers, and more.

• Reverse Mortgages for seniors age 62 or older.

• Equity Management strategies for high-end homes and high net worth individuals.

Contact Steve Kappre directly at 856-419-3561 or at www.stevekappre.com