The Reverse Mortgage: What is it and when do they make sense?
I’ve been a “life long” Real Estate Professional and the vast majority of my professional expertise and experience has been working as a Real Estate Broker Sales associate.
My group and I are constantly “learning and relearning” about the various mortgage products and how they effect the validity of any transaction that involves financing. This is especially important when working in urban environments where FHA Approved Buildings are few and far between. Some good examples are Carlton Tower Condos in Passaic and Adams Square Condos in Hoboken.
Carlton Tower Passaic New Jersey
Adams Square Hoboken
Moreover, what is extremely important is our ability to quickly and easily determine if the buyer and/or the buyer of one our customers’ properties will qualify for a loan.
Over the past decade, James Chu, my long time business partner and personal friend has stood the test time. His team is one of the leaders in the mortgage banking industry. When I have a question about mortgages, James and his team are always the people my customers and I can bank on!
When thinking about reverse mortgages, I thought it best to go to the source and experts…
James Chu (Bank of America, Home Loan Manager) and Betty Roche (Bank of America Reverse Loan Officer) have kindly prepared today’s guest post on reverse mortgages and when they are a sensible option.
YOU HAVE CHOICES
If you are a homeowner age 62 or older, a Home Equity Conversion Mortgage (HECM), a type of federally insured reverse mortgage, can help you access a portion of the available equity in your home. A reverse mortgage from Bank of America can help you maintain your independence and give you the security that comes with a financial institution committed to responsible lending.
A Home Equity Conversion Mortgage from Bank of America provides:
- PROCEEDS FOR MANY PURPOSES. The proceeds are generally *tax-free and can be used to pay for medical costs, make home improvements or cover unexpected expenses.
- MAINTAIN HOMEOWNERSHIP. You retain the title to your home throughout the course of the loan.
- NO MONTHLY PAYMENTS. You can continue to live in your home with no monthly reverse mortgage payments.
- FIXED RATE. An option that give you the security of an interest rate that never changes.
- ADJUSTABLE RATE. An open-end credit loan that gives you the flexibility to pay down your balance and redraw funds.
As a reverse mortgage loan officer, I’ll provide you with the information and guidance you need to feel confident that you are making the right choice to meet your individual needs.
Disclosure: *Please consult your tax advisor.
Property insurance is required, flood insurance when necessary. Borrower is still responsible for paying ongoing property taxes. Credit is subject to age and property qualifications. Program rates, fees, terms and conditions are not available in all states and subject to change. Please contact Bank of America for more information.
Thanks James for the great insight into reverse mortgages. If you’re not sure whether or not a reverse mortgage is advantageous for you please don’t hesitate to call me (800 295 5995 ext 911) today.
4th of July Festival/Stay to watch Macy’s Fireworks in Hoboken this year!
In addition to being a prime location for viewing the annual Macy’s fireworks show over the Hudson River, Hoboken will also present a special 4th of July Festival along Frank Sinatra Drive between 1st Street and approximately where Sinatra would intersect 7th Street from noon until 10pm.
The festival will feature artists, crafters, photographers, food vendors, rides, games, live music and more – all against the gorgeous backdrop of the New York skyline.
The Macys fireworks display will begin in the Hudson River at 9:20 p.m. and last for 26 minutes, with approximately 1,500 bursts per minute.
Fed Cautious on Housing Recovery: The “On the Street Translation”
Bloomberg Businessweek staff report Michael Wallace says, “The Fed Sounds a Cautious Note on Recovery”
The central bank commits to ultra-low rates for an “extended” period amid Europe’s economic weakness and problems in the U.S. housing sector. The economic data have not prompted the need for any wholesale changes in the Fed’s outlook, though the housing outlook certainly weakened given the 2.2 percent drop in May existing home sales and the 32.7 percent plunge in May new home sales, to a record low this week.
For the full article, see Bloomberg Businessweek.
………………………
Now the Reality by Sean T Shallis, “Senior Real Estate Strategist” of Weichert Realtors and The Shallis Groups’ “On the Street Translation”
By the numbers
Existing home sales in the Northeast region were off by over 18% for the month of May 2010. New homes sales were off by 33 % and the “ever popular” housing starts dive 10%.
Ok Sean… “Do you have a crystal ball or something?” Sure, because only the “educated and informed” will win in the third and fourth quarters!
March 31 2010: US Government stops purchasing Commercial Mortgage backed securities. They are, basically, the life blood of the secondary mortgage market, outside of Fannie, Freddie, Gannie and FHA and even Veterans Administration home loan program, which is now making a strong come back.
Federal Reserve announces: Discount Window to return to “24 hour” repayment policy. During the height of the credit crisis the Federal Reserve eased the terms of repayment for banks and financial institutions to (30) days. “On the street translation”, when your account is over-drawn, you borrow from the bank. When your bank is over-drawn, they borrow from Uncle Sam!
Ben Bernanke basically said, “We’re tired of supporting the housing market. You kids need to go back and re-establish your own secondary market in the private sector. Uncle Sam can’t afford to keep everyone on the payroll or bankroll.”
April turns out to be an interesting month. Obviously the first and second time buyers tax credit expired on April 30th. Here is the rub on this…April sales volume surges 21% and May dives 18%. “On the street translation”, it’s pretty simple math ..I count this as plus 3%!
Sean, “on the street translations” are great… The real question is, “What about my home or personal situation?” Right. We’ll always have buyers and sellers, providing we can educate each side to a point at which they feel “confident and comfortable” in their buying or selling decision into a fair market transaction for everyone involved.
If you or someone you know is looking to buy or sell a home or building in this unique and ever changing real estate economy…Don’t do it alone…Contact me and let my group and I help your colleagues, family and friends be “confident and comfortable” in your decision making process.
As always, the call is “FREE”! Call me immediately at 1-800-295-5995 Ext. 911.
Sincerely,
Weichert Realtors and The Shallis Group
Our combined mission as a team is to provide our customers with a passionately motivated and committed team of highly skilled real estate professionals. We’ll work with you to understand and accomplish our customers short and long term goals both “in and out” of the real estate transaction.
6 Month Real Estate Market Forecast for the Northeast
Is the Market Really Getting Better or Not?
The Northeast Metro Area has been experiencing slight increases in values and overall demand for the last ninety days. In our professional opinion, this false increase* is not a true indication of the actual overall market conditions. After closer review of the market data, you’ll notice that we are already beginning to see declines in market values and demand.
Transactions from November 2009 to January 2010 or later were “in contract and or closed sales” just prior to the ending of the federal tax credit for first and second time buyers. In addition, as of March 31, 2010 the federal government discontinued supporting the secondary mortgage market by no longer participating in the acquisition of CMBS (Commercial Mortgage Backed Securities). Contrary to the expected increase in retail mortgage rates after March 31, 2010, retail mortgage rates have declined over the last 60 days. We feel that this decrease in mortgage rates was the result of 10 Year Treasuries and the overall Bond markets experiencing new in flows of capital from investors exiting foreign/oversea markets.
Estimated Market Forecast for the Northeast Metro Area Real Estate Economy:
- During Q1-2 of 2010, the Northeast has been experiencing pricing declines between 0 to -.25 per month. Looking forward to Q3-4, we actually anticipate increased downward pressure of between -.25% and -.50 % per month.
- Median priced properties will typically experience less severe declines in demand as well as over all pricing. In contrast, we do anticipate more dramatic declines in the high-end luxury markets as there is obviously less demand and or liquidity for buyers in this market sector.
- We are calling for market stabilization between Q4 of 2010 and Q1 2011 without a return to normal/traditional market appreciate of 3-5% per year until sometime between Q4 2012 and Q1 2013.
Look out for more of Shallis “On the Street Translations” in the coming weeks and as news breaks.
Does your Realtor truly know what’s going on in the ever changing real estate market? Professional knowledge and experience is what you need. Call Sean T. Shallis immediately at 1-800-295-5995 x.911 or contact us on our website to work with the “Market Makers” and get the deal you deserve!
‘God-Father’ of Motivational Thinking Quote
“Don’t concern yourself too much with how you are going to achieve your goal – leave that completely to a power greater than yourself. All you have to do is know where you’re going. The answers will come to you of their own accord, and at the right time.”
Earl Nightingale
1921-1989, Syndicated Radio Announcer and Author
OPEN HOUSE 6/19: HOBOKEN, NJ
JUST REDUCED TO $279,000! Great unit for first time buyers! This wonderful 2 bed/1 bath condo features a natural oak kitchen w/ Corian countertops, large adjoining living room & dining room, new windows, gleaming HW floors, ample storage space & convenient laundry room in basement. Walking distance to shopping, restaurants, parking (Midtown Garage/330 Clinton) & transportation (short 10 min walk to PATH/Crosstown Bus stops at the corner for quick, easy and inexpensive commute). Low maintenance fee and priced to sell quickly! Don’t miss it!
Home Buyer Tax Credit Still Not Over
If you think the home buyer tax credit is over and done with, think again…
Although the home buyer tax credit expired on April 30th, buyers with signed contracts have until June 30th to complete their purchases. With that deadline just around the corner an estimated 180,000 consumers are in jeopardy of missing the deadline and, as a result, missing out on their tax credit.
What’s getting in the way of 180,000 new home owners qualifying?
This one’s a no-brainer, bureaucracy! Due to consumers rushing to meet the April 30th deadline, causing new home sales to rise 15% in April, a huge backlog in the paperwork process was created making the June 30th deadline near impossible for almost two hundred thousand buyers. So, who’s coming to save the day? You guessed it again, the bureaucrats! The Senate voted on Wednesday to allow consumers an additional three months to get their deals completed, giving them an extension from June 30th to September 30th.
Although a vote still needs to take place in the House of Representatives, it seems likely that the legislation will pass. So what does the National Association of Realtors have to say about it? Vicki Cox Golder, president of NAR, said, “These are not buyers who just entered into the market. These are buyers who previously met all the qualifications for the tax credit, but find themselves at the mercy of a work-flow jam with the lenders or other delays and might not be able to complete the purchase of their homes.”
Want to know how your Senator’s voted? Check out the roll call here.
Does your Realtor truly know what’s going on in the ever changing real estate market? Professional knowledge and experience is what you need. Call Sean T. Shallis immediately at 1-800-295-5995 x.911 or contact us on our website to work with the “Market Makers” and get the deal you deserve!
New Listing Hoboken, NJ: $289,000!
Great unit for first time buyers! This wonderful 2 bed/1 bath condo features a natural oak kitchen w/ corian countertops, large adjoining living room & dining room, new windows, gleaming HW floors, ample storage space & convenient laundry room in basement. Walking distance to shopping, restaurants, parking (Midtown Garage/330 Clinton) & transportation (short 10 min walk to PATH/Crosstown Bus stops at the corner for quick/easy/inexpensive commute). Low maint fee and priced to sell quickly! OPEN HOUSE ON SATURDAY JUNE 19TH FROM 1-4PM….Don’t miss it!
Home Buyer Tax Credit Leads to more Fallout
Looks like the Trickle Down effect is actually Trickling UP!
An recent Associated Press article shows home builders less confident in housing market:
WASHINGTON — Home builders are losing confidence in the housing market now that government incentives that spurred home sales have ended.
The National Association of Home Builders said Tuesday its housing market index fell to 17 in June, sinking five points after two straight months of increases. It was the lowest level since March. Builders had been more optimistic earlier in the year when buyers could take advantage of tax credits of up to $8,000. Those incentives expired on April 30, although buyers with signed contracts have until June 30 to complete their purchases. Thanks to the credits, sales of new homes rose nearly 15 percent in April. That followed a nearly 30 percent surge in March, the biggest monthly increase in 47 years.
But now that they are gone, “the reduction in consumer activity may have been more dramatic than some builders had anticipated,” said Bob Jones, a builder from Bloomfield Hills, Mich. and the Washington-based trade group’s chairman.
Many experts anticipate home sales will slow in the second half of this year. In addition, high unemployment and tight mortgage lending continue to keep many buyers on the sidelines.
The trade group’s index is made up of three components. The reading for current sales conditions fell one point to 16, while the index measuring expectations for the next six months fell two points to 26. The index measuring foot traffic from prospective buyers held steady at 13.
The report reflects a survey of 344 residential builders nationwide.
OK…So at the bottom of the article it says, “Post your thoughts” ?
Thinking to myself, it’s not rocket science here kids..Does your real estate professional truly “Get It” ?
These are some actual comments we shared with one of our presenting customers yesterday morning!
Dear Tom Jones,
The Mortgage Bankers Association said its seasonally adjusted index of mortgage applications for the week ending June 4 declined 12.2%. Refinancing applications fell 14.3%. Purchase volume decreased 5.7%.
Does your real estate professional truly “Get it” ? Stop making decisions based on the News.. Call me immediately 1-800-295-5995 x. 911 to work with the “Market Makers” and get the deal you deserve!
Great quote for today !
“The important thing is not being afraid to take a chance. Remember, the greatest failure is to not try. Once you find something you love to do, be the best at doing it.”
Debbi Fields
Founder of Mrs. Fields Cookies
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