Tag Archive for: reverses

What’s Wrong with Reverse Mortgages?

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Over the last 30+ years, I have been providing 3 types of financing to clients… Residential Financing, Commercial Financing and Reverse Mortgage Financing.

In that time, I have seen all 3 improve and evolve but the one category that has improved the most is Reverse Mortgages.  In the past, when a customer applied for one, they were really throwing the dice, so to speak, on what they would end up paying rate and fee wise, what they were told from the lender and the worse part, what they signed often relinquishing the rights of the property to the lender…Yes you heard right.  If the borrower passed away, the lender kept the house (if your parent or loved one has one from 10 years ago or longer, have them review their promissory note for such language and if applicable, refi out of it!).

Today, Reverse Mortgages are a Different Animal, so home owners 55 and above in age can enjoy their home, age in place, even if they don’t have the income to afford their home, just as long as they have enough equity in their home.  In addition, 10 years ago, it was commonplace, to see closing costs on reverses equal to $10k or 20k (or higher) and today on a Jumbo reverse they can cost $1000 to a max of $9000 depending on the rate and program chosen (most of ours are around $4k to $6k).  Lastly, today the home is yours when you sell, not the lender.

Before a client can even start a reverse mortgage application they must sit down with a qualified individual like myself and review their options, pros and cons and then take a mandatory (online/over the phone) class.   Then after a 7 business day cooling off period are they able to proceed with the application.  Lastly, while they have improved exponentially, there are some things to still consider.

You’re retired! The stock market just had a major correction (q1 and q2 of 2022) and your wondering if you have enough money to live on, long term?  Often times a Reverse Mortgage is exactly what you need as it eliminates:

– Mortgage Payments
– Monthly Medical Costs
– Credit Cards and Installment Debts

So…What’s Wrong with a Reverse Mortgage?

A Few Things…

– A Band-Aid…Really?  They can be Band-Aid to a more pressing issue in relationship to one’s Burn Rate or Lifestyle!
– Expensive…They can be Expensive, especially if you don’t spend the time to educate yourself on them and compare one option to another!
– They Can Take a While to Close. Don’t Wait until you Run Out of Money to Get one, Plan Ahead!

For more information, please contact me.  Thanks.

Rob McCarthy

Senior Mortgage Advisor

www.101Loan.com

408-377-4123 o  650-465-8957 c   408-608-1921 f

101 Loan – 1601 S De Anza Blvd, Suite 260, Cupertino, CA 95014

CA DRE #01165697  NMLS #121019

Products/Services/Accolades:

  1. Residential Financing for Purchases and Refinances on 1 to 4 unit properties.
  2. Reverse Mortgage Financing to include Conforming, Jumbo, HELOC Jumbo’s.
  3. Commercial & SBA Financing to include Multifamily, Office, Retail and Light Industrial.
  4. Access to over 50 banks with over 200 “Five Star” Reviews on Yelp, Google, Facebook and Linkedin.

“A Stock Market Loss is Only a Loss if You Sell”

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A Stock Market Loss is Only a Loss if You Sell or so Financial Planners tell us!

For those in their 30’s, 40’s or 50’s, those age groups, should have time for the stock market to recover. However, for those much closer to retirement or retired, they may not be as fortunate!

As companies take huge losses with “Shelter in Place” and consumers are pulling back their purchases, analysts feel MORE stock losses are imminent.  The Federal Government stimulus will help in the short term, but longer-term, we are facing a new economic reality and one that we will not like.

If you’re in your 60’s, 70’s or 80’s, making back the market’s losses may only be a hope, and unfortunately not reality. The question to ask is…What are my options now that my fixed costs are the same, but my assets have taken a big hit?

We may have an answer for you. To learn more, please contact me or review the information on my site at https://101loan.com/reverse-mortgage-start/ .

Thank you.

Best Regards,

Rob McCarthy

Senior Mortgage Advisor

www.101Loan.com

408-377-4123 o 650-465-8957 c

101 Loan – 1601 S De Anza Blvd, Suite 260, Cupertino, CA 95014

CA DRE #01165697 NMLS #121019

“Over 200 “5 Star Reviews on Yelp and Over 30 years of Experience in Lending”

Market Update and What Should Retired Homeowners Due in a Declining Stock Market…

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As for Mortgage Rates and the Stock Market…The dust has not settled.  Analysts say this week or next may be similar to the last few weeks with volatility in the market. For now, only loans of $510k or less are low in rate. Loans above $510k are expensive, “rate wise” when looking at refi options. Purchase loans are still low in rate as banks subsidize them. In regards to market volatility for this week, please see the following at https://seekingalpha.com/article/4335928-markets-are-setting-up-for-another-move-down-technically-speaking-for-week-of-3-30minus-4-3.

In Addition…Wells Fargo has announced they will only do jumbo loans for clients with $250k deposited with them and will not be doing conforming loans or government type loans (such as FHA and VA) going forward. We are glad we have access to more than one jumbo lender and access to everything else! Being a broker in this type of market does have its perks with access to multiple lenders, many of which are portfolio lenders and lenders that sell to Fannie Mae and Freddie Mac, giving our clients more loan options!

In Closing…with market devaluations, many of your retired clients may be feeling the pain or fear of seeing their portfolio or monthly income from those assets go lower. As a solution, we have access to Reverse Mortgage Financing that can help them Age in Place and eliminate stress and anxiety with the changing times. For more info, please contact me.  Any questions, please contact us.

With the Downturn of the Stock Market, We Have a Solution for you!

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With a significant decline in the stock market, Retirees may have depleted a great deal of their reserves.  If over the age of 62 and a Home Owner, why not consider a Reverse Mortgage?  This may free up cash, pay off bills, cover future expenditures and provide those reserves that make us all sleep better at night!

Learn More about our Conforming or Jumbo Reverse Mortgage, both available with HELOC’s that provide:

  • No Monthly Mortgage Payments
  • Payment Free Equity Line of Credit
  • Cash-out with No Monthly Payments
  • Cash to Reinvest to Replenish Losses from Dow Dropping

For more info, please complete the following:

  1. What are your full name(s)?
  2. List your mobile number and property address?
  3. What is your birth-date (month and year only)?
  4. Please provide your homes estimated value and current mortgage balance?
  5. If you have a line of credit or fixed 2nd, what is the balance?
  6. What is your monthly income?
  7. Do you have any debts you would like paid off?
  8. Would you like cash out to invest or save?
  9. How would you describe your credit?

Note:  No credit report will be run and information will remain confidential.

If you have any questions or if you’d like to discuss the above, please contact me.  Thanks.

BTW…For more info, go here: https://101loan.com/reverse-mortgage-start/

All the Best, 

Rob McCarthy

Senior Mortgage Advisor

www.101Loan.com

408-377-4123 o  650-465-8957 c   408-608-1921 f

101 Loan – 1601 S De Anza Blvd, Suite 260, Cupertino, CA 95014

CA DRE #01165697  NMLS #121019

Products/Services/Accolades:

  1. Residential Financing for Purchases and Refinances on 1 to 4 unit properties.
  2. Reverse Mortgage Financing to include Conforming, Jumbo, HELOC Jumbo’s.
  3. Commercial & SBA Financing to include Multifamily, Office, Retail and Light Industrial.
  4. Access to over 50 banks with over 200 “Five Star” Reviews on Yelp, Google, Facebook and Linkedin.