Connie Perez
REALTOR®
Realty Executives Oceanside
I recently took a class presented by Fairway Mortgage Corporation that was about Reverse Mortgages. HECM (Home Equity Conversion Mortgage), is the most common of the reverse mortgages. With HECM you can turn your equity in your home into tax-free cash. You can use the HECM for Purchase Loan to purchase your retirement home. With this seniors can use the equity from the sale of their previous home to purchase their next primary residence. There would be no mortgage payment, but your would be responisble for insurance, taxes, and maintenance. This will increase the amount of money you have in your pocket to help with the ever increasing living expenses.
For Example: Joe sells his home and has $200,000 cash from the sell. He can use this money to purchase a $400,000 home. The $200,000 would be the initial down payment and HECM loan Joe no longer has a mortgage payment. He now only has to pay for taxes, insurance and maintenance.
Benefits of Reverse Mortgage
Eligibility Requirements
This is just the basics, other factors do play into qualifications, such as interest rates, appraisals, etc....
If you have questions or are interested in more information click here or you can contact Linda or Beth at TheLoanProTeam@fairwaymc.com.
With the up coming hurricane season upon us, I thought it fitting to see if there are any changes in flood insurance coverage. I discovered an article in Realtor Magazine that I found interesting. The following is a quick overview of what I read.
FEMA (Federal Emergency Mangement Agency), can only do so much without legislation by Congress. With that said, FEMA does oversee the National Flood Insurance Program, and has made a few changes that make it easier to switch to private coverage if it is a better deal.
The first change is that they no longer require the federal coverage be retained until the term is up even if you have changed to a private carrier. This would mean that you do not have to pay for two policy premiums at the same time.
The second change states that Insurance companies can now offer both Federal NFIP coverage and private coverage. Prior to this change if a company offered NFIP they could not offer private insurance.
FEMA has also made a couple of changes to make it easier for homeowners who appear to be in a flood zone area.
I hope you found this helpful. If you would like to read the original article please click here.
Have you wondered what title insurance is and do you need it? Hopefully this will clear up some of the questions you may have.
Title insurance protects the insured from financial loss that pertains to property ownership. There are two kinds of policies: Lenders policy, which protects the mortgage company from any financial loss, and the Owners policy, which protects the property owner. Both policies are a one time fee that is normally taken care of at closing. Basically, the title company performs a search on the property. The search is looking for any claims against the property in regards to ownership or outstanding liens. For more information click here.
Please feel free to contact me if you would like to discuss this further.
Whether buying or selling a home, the last thing you need is an appraisal that comes in too low. This will put a wrench in the entire process including financing. Issues with appraisals are one the most common causes for delayed closings. Here are a couple of tips to help avoid this crisis.
1. Buyer - ask your lender to use a local appraiser, someone that knows the area
2. Buyers agent should be present during the appraisal and provide comps that are appropriate
3. Seller - get a prelisting appraisal, this will help in setting a listing price
4. Prelisting appraisal can be given to the buyer's appraiser
5. You can always contest the appraisal, the appraiser or supervisor may agree to consider new or overlooked information.
