Your parents could live the remainder of their years not paying a mortgage* and maybe even getting a monthly check as long as they live in their home.
Your parents may be eligible for an FHA Reverse Mortgage if they are 62 or older, meet financial requirements and have sufficient equity in their home. They will need to live in the home as their principal residence, maintain it, and pay taxes and insurance.
How It Works:
Proceeds from a reverse mortgage first pay off the current mortgage on the home, if applicable. Your parents can access additional funds through a lump sum payment, a line of credit or monthly installments. The amount available depends on the amount of equity they have in their home, settlement costs, interest rates, and their ages. In some cases, funds to pay taxes and insurance are set aside at closing or withheld from regular disbursements.
Points to Remember:
If you would like to discuss reverse mortgages for your loved ones, please give us a call. We’ll be happy to help.
*The homeowner is responsible for paying taxes and insurance and for properly maintaining the home. The home must be used as the homeowner’s primary residence.
The Fed increased rates at their most recent meeting. They also
indicated they will likely raise rates three additional times in 2018. Please
read on for more:
First, who is the Fed
and what do they do?
The Federal Reserve Board (the Fed), controls the Fed Fund Rate and the
Discount Rate. These are charges for overnight loans from bank to bank or from
the Fed to member banks.
What does an increase mean for regular people?
• It could cause banks to increase their “prime rates,” which are often used to
calculate interest on consumer products like credit cards and home equity lines
of credit (HELOCs).
• Mortgage rates are long-term rates and
not directly controlled by Fed rate changes. However, mortgage rates are
influenced by Fed policy, and rates can rise in anticipation of future Fed
action. There are exceptions, yet home loan rates will typically follow overall
interest rate trends over time.
Upcoming change in leadership at the Fed:
In January 2018, the current Fed chair, Janet Yellen, will step aside for a new
chair, Jerome Powell. Time will tell whether this transition will impact
Here’s what we know:
With the uncertainty, I’m tracking the changes carefully and am happy to keep
you informed whenever you like.
you for allowing me to provide you updates on industry news. Please reach out
if I can answer any questions for you or help with financing (or refinancing)
Federal Housing Administration (FHA) today announced the agency's new schedule
of loan limits for 2018, with most areas in the country to experience an
increase in loan limits in the coming year. These loan limits are effective for
FHA case numbers assigned on or after January
Due to robust increases in median housing prices and required changes to FHA's
floor and ceiling limits, which are tied to the Federal Housing Finance Agency
(FHFA)'s increase in the conventional mortgage loan limit for 2018, the maximum
loan limits for FHA forward mortgages will rise in 3,011 counties. In 223
counties, FHA's loan limits will remain unchanged. By statute, the median home
price for an MSA is based on the county within the MSA having the highest
median price. It has been HUD's long-standing practice to utilize the highest
median price point for any year since the enactment of HERA.
Down payment requirements can be lower than many believe, and some programs allow for little or even no money down. FHA, USDA, VA, HUD, Homepath, 80/10/10's, conventional loans—all can be used to facilitate a home purchase with less cash-on-hand than you might have thought possible.
Getting in a home while prices are rising can be a smart move. You’re allowing the market to build equity for you rather than racing it in an attempt to save faster than prices climb.
At the least, a free consultation and review will let you know what might be available for your situation. If you know where you stand, you can take advantage of rising prices rather than having them take advantage of you.
ABOUT PROTECT YOUR TRANSACTION?
Protect Your Transaction? is a quality assurance program that provides all transaction parties with confidence that the Buyer's offer is pre-approved and the Lender is committed to the loan. All PYT Lenders provide the following promises:
Lender will pay $10,000 in the event it fails to deliver on its loan commitment
Lender will issue a loan commitment on or before the 15th day from the complete mortgage loan application
Lender will provide communication and documentation during the loan process
WHY PROTECT YOUR TRANSACTION? WAS CREATED
In a home purchase transaction there are two primary parties, the Seller and the Buyer. Both parties make major commitments in a home purchase transaction.
Sellers agreed to turn-down other offers and may be buyers of a new home that depends on the sale of its current home. An additional month of mortgage payments and uncertainty when transactions do not close represents thousands of dollars and hardship.
Buyers may be selling their current homes, given notices to their landlords, hired moving vans, researched new schools... a lot is riding on making sure their home purchases close.
Basically, everyone wants to feel confident that the transaction will happen. When a Lender makes a commitment to finance the Buyer's purchase, that commitment needs to be one that all parties can trust. What happens when the Lender does not deliver on their commitment? Sellers and Buyers are left to pick up the pieces and the Lender... they move on to the next transaction.
Protect Your Transaction? was created to make sure the Lender has 'skin in the game' and committed to the transaction.