For Release:
Annie Mac has introduced the Reverse Mortgage Certification interally today. This is a process by which those licensed mortgage bankers within the Annie Mac community are able to learn and master the reverse mortgage program.
If you are interested in learning more, please contact us at http://benstucker.annie-mac.com or http://reverse.annie-mac.com.
Thank you,
Ben Stucker
1/24/2012
Reverse Mortgage - Site Condo
In the recent past, HUD has initiated several changes with all guidelines. Perhaps one of the most challenging has been the removal of spot condo approvals. Yet, there is still hope for those homeowners over 62, living in a condo, and looking for a reverse mortgage. Specifically, home owner associatiations can obtain HUD approved status by providing specific documents to the lender.
Should you be lucky enough to live in a site condo, congratulations, you will not need HUD approval. Despite the word "condo" in the name, a site condo is treated similarly to a standard single family detached home when it comes to reverse mortgages.
I bring this up because I have recently completed my 4th referral transaction in a site condo development named Elmtown East in Hammonton, NJ.
Have a great day and please be sure to review our updated reverse website: http://www.annie-mac.com/reverse or contact me 856-505-6603.
Should you be lucky enough to live in a site condo, congratulations, you will not need HUD approval. Despite the word "condo" in the name, a site condo is treated similarly to a standard single family detached home when it comes to reverse mortgages.
I bring this up because I have recently completed my 4th referral transaction in a site condo development named Elmtown East in Hammonton, NJ.
Have a great day and please be sure to review our updated reverse website: http://www.annie-mac.com/reverse or contact me 856-505-6603.
11/30/2010
How the market has changed!
Wow, the market has certainly changed in the last year. Rates have gone down, up, down, up....home values have gone, well, just down. Despite the decrease in home values, there are opportunities.
FHA offers near 100% financing for first time, second time and nth time borrowers. This is not just a low income or "assistance" program. As a matter of fact, FHA allows loan sized up to $420,000 in Bucks County, PA and nearly $730,000 in many counties in NJ.
For those looking to refinace you may be able to do a rate term and cut some time off the loan you may still have 29 or 28 years left on. I recently completed a refinance for a homeowner who eliminated 13 years off of her mortgage by refinancing into a 15 year fixed and her payment went up by only 131 dollars a month (was 1400, now 1531). That's good stuff.
Feels good to be back posting....geez it has been a while!
FHA offers near 100% financing for first time, second time and nth time borrowers. This is not just a low income or "assistance" program. As a matter of fact, FHA allows loan sized up to $420,000 in Bucks County, PA and nearly $730,000 in many counties in NJ.
For those looking to refinace you may be able to do a rate term and cut some time off the loan you may still have 29 or 28 years left on. I recently completed a refinance for a homeowner who eliminated 13 years off of her mortgage by refinancing into a 15 year fixed and her payment went up by only 131 dollars a month (was 1400, now 1531). That's good stuff.
Feels good to be back posting....geez it has been a while!
11/09/2009
The best mortgage rate wins - or does it?
When it comes to mortgage rates, the best rate wins - or does it?
If you are looking to get the "best rate" you need to remember that there are considerations outside of rate - AND EVEN OUTSIDE OF THE LOAN YOU ARE DOING TODAY - which could impact your situation and the amount of interest you pay. Let's look at an example:
1) Bank A has the BEST RATE available at 5.00%. They are great at customer service, and get you the deal you want. It was easy and you now have a nice low payment for 30 years. You didn't know the person who originated the loan, but they seemed okay based on the limited interaction you did have. According to all the information you know, you got the best deal for your situation.
2) Bank B has close to the best rate available at 5.125%. They provide good customer service and can get close to the deal you want. The monthly payment might be higher by $10 or $15 dollars a month - however, with this bank you learn that you can pay bi-weekly and actually turn your 30 year loan into a 23 year loan saving over $100,000 in interest payments. The individual from Bank B gets paid slightly more due to the higher rate - but he spends more time with each client learning how they can be helped (more than just a rate) and closes less deals each month.
So if you went with the best rate, did you get the best deal?
The key to any financial transaction is that you get a GREAT DEAL/RATE/PAYMENT - not just on the transaction today - but also over the course of your life. The "lowest rate available" may end up costing you more than you can imagine.
It is not easy, but you should think about the road ahead and less about your next step....after all, your next step may be in the wrong direction.
If you are looking to get the "best rate" you need to remember that there are considerations outside of rate - AND EVEN OUTSIDE OF THE LOAN YOU ARE DOING TODAY - which could impact your situation and the amount of interest you pay. Let's look at an example:
1) Bank A has the BEST RATE available at 5.00%. They are great at customer service, and get you the deal you want. It was easy and you now have a nice low payment for 30 years. You didn't know the person who originated the loan, but they seemed okay based on the limited interaction you did have. According to all the information you know, you got the best deal for your situation.
2) Bank B has close to the best rate available at 5.125%. They provide good customer service and can get close to the deal you want. The monthly payment might be higher by $10 or $15 dollars a month - however, with this bank you learn that you can pay bi-weekly and actually turn your 30 year loan into a 23 year loan saving over $100,000 in interest payments. The individual from Bank B gets paid slightly more due to the higher rate - but he spends more time with each client learning how they can be helped (more than just a rate) and closes less deals each month.
So if you went with the best rate, did you get the best deal?
The key to any financial transaction is that you get a GREAT DEAL/RATE/PAYMENT - not just on the transaction today - but also over the course of your life. The "lowest rate available" may end up costing you more than you can imagine.
It is not easy, but you should think about the road ahead and less about your next step....after all, your next step may be in the wrong direction.
11/02/2009
Set up your Bank Statements for a Purchase Mortgage
If you are a first time home buyer, or looking to make a move and will need to use funds from your bank account, here is a helpful hint which will save you a huge amount of time and frustration (but they involve planning on your part):
If you make a large deposit make sure your mortgage lender knows where the funds came from. You will need to write an explanation letter in addition to at least one of the following:
- If the funds are from your retirement account or other account that you own, you will need to provide that accounts statement. Note, if this is a trust account you will need to show the trust docs so they know who needs to give permission for this.
- If they are gift funds, you will need to get a letter from the person who gave you the gift which will need to be signed by you and the person who gave you the gift. Also, you will need to show their account statement with the funds coming out
- If it was a loan from someone, you will need to provide the terms and then the monthly payment will need to be factored into your Debt Ratio.
If you make a large deposit make sure your mortgage lender knows where the funds came from. You will need to write an explanation letter in addition to at least one of the following:
- If the funds are from your retirement account or other account that you own, you will need to provide that accounts statement. Note, if this is a trust account you will need to show the trust docs so they know who needs to give permission for this.
- If they are gift funds, you will need to get a letter from the person who gave you the gift which will need to be signed by you and the person who gave you the gift. Also, you will need to show their account statement with the funds coming out
- If it was a loan from someone, you will need to provide the terms and then the monthly payment will need to be factored into your Debt Ratio.
11/01/2009
Set yourself up for a great mortgage rate
As a mortgage originator one of the best ways I can help a prospective homeowner is to set expectations about process, rate and program guidelines well in advance. (The following information will also be true for those looking to refinance).
Be ready to ACT not RE-ACT. This, by the way, is also a great way to plan in life in my opinion.
In the mortgage business this means that you, as a borrower, should have your necessary documents "on hand" and all supporting documentation available if requested. For example: If your bank statement shows a $10,000 deposit that is unlike any other event on your bank statement, you will need to be ready to explain the deposit and also provide where the funds came from and SHOW where the funds came from.
Perhaps most importantly, you want to be sure you don't miss out on a great rate. In order to get the best rate you need to allow for the market fluctuations to lead you there. Rates can change weekly/daily and it is not uncommon for rates to vary up to a 0.25% in a given day. When working with your mortgage lender or broker, be sure you are clear on what is "good" and what is "great" when it comes to your rate expectations. Allow them to lock when needed and be ready to close quick (in some cases the rate lock can be 15 days or less so will need to hustle).
Happy house hunting everyone and be sure to plan ahead!
Be ready to ACT not RE-ACT. This, by the way, is also a great way to plan in life in my opinion.
In the mortgage business this means that you, as a borrower, should have your necessary documents "on hand" and all supporting documentation available if requested. For example: If your bank statement shows a $10,000 deposit that is unlike any other event on your bank statement, you will need to be ready to explain the deposit and also provide where the funds came from and SHOW where the funds came from.
Perhaps most importantly, you want to be sure you don't miss out on a great rate. In order to get the best rate you need to allow for the market fluctuations to lead you there. Rates can change weekly/daily and it is not uncommon for rates to vary up to a 0.25% in a given day. When working with your mortgage lender or broker, be sure you are clear on what is "good" and what is "great" when it comes to your rate expectations. Allow them to lock when needed and be ready to close quick (in some cases the rate lock can be 15 days or less so will need to hustle).
Happy house hunting everyone and be sure to plan ahead!
10/20/2009
Knowledge about Reverse Mortgages in PA and NJ
This past Wednesday, I was giving an educational presentation at a Library in Southampton, PA. While I was just explaining the basics of how a reverse mortgage works and that they do come in fixed rates of 5.56% and adjustables starting at about 3% (as of today), a woman yells from the back of the room "no they don't".
Wanting to be sure I heard her correctly, I said "I'm sorry ma'am, did you have a question?". She responded with, "No I don't have a question, I am just saying that reverse mortgages don't come in a fixed rate, I know, I looked into one."
So I found myself in quite a hard situation as I am just about the least confrontational person on the planet, but if I didn't say anything there would be a room full of people thinking that I just lied to them - which I would certainly never do.
So, I politely said, "Ladies and Gentlemen, if you care to review the rate options available with a reverse mortgage, please feel free to contact me after the presentation while I am here and we can head upstairs to the computer and review the program guidelines on the internet together."
Still, after all these years of doing everything I possibly can to educate Seniors and their families, it seems as though the vast majority of individuals don't have the basics of a reverse mortgage down. Now, based on the media coverage, I don't blame them for not knowing the basics as the media spins the worst possible angle and will certainly hesitate to say even "but they are lifesavers for some". That wouldn't make a very good story now would it....
I think it is natural to be afraid of new things - or perhaps skeptical is a better word. However, if certain "individuals" (like those mentioned above) took the time to simple educate themselves (or pick ask for full info), maybe people who actually NEED a reverse mortgage won't be as hesitant.
Here is the truth of it all: Reverse Mortgages are great for those individuals who have found themselves in their home late in retirement and have no cash. Reverse Mortgages may be right for someone who is considering the purchase of a 2nd home or other luxury item such as a boat (as the financing terms with a reverse will always be better). That is it...plain and simple....
Wanting to be sure I heard her correctly, I said "I'm sorry ma'am, did you have a question?". She responded with, "No I don't have a question, I am just saying that reverse mortgages don't come in a fixed rate, I know, I looked into one."
So I found myself in quite a hard situation as I am just about the least confrontational person on the planet, but if I didn't say anything there would be a room full of people thinking that I just lied to them - which I would certainly never do.
So, I politely said, "Ladies and Gentlemen, if you care to review the rate options available with a reverse mortgage, please feel free to contact me after the presentation while I am here and we can head upstairs to the computer and review the program guidelines on the internet together."
Still, after all these years of doing everything I possibly can to educate Seniors and their families, it seems as though the vast majority of individuals don't have the basics of a reverse mortgage down. Now, based on the media coverage, I don't blame them for not knowing the basics as the media spins the worst possible angle and will certainly hesitate to say even "but they are lifesavers for some". That wouldn't make a very good story now would it....
I think it is natural to be afraid of new things - or perhaps skeptical is a better word. However, if certain "individuals" (like those mentioned above) took the time to simple educate themselves (or pick ask for full info), maybe people who actually NEED a reverse mortgage won't be as hesitant.
Here is the truth of it all: Reverse Mortgages are great for those individuals who have found themselves in their home late in retirement and have no cash. Reverse Mortgages may be right for someone who is considering the purchase of a 2nd home or other luxury item such as a boat (as the financing terms with a reverse will always be better). That is it...plain and simple....
9/30/2009
FHA limits the benefit of a Reverse Mortgage
As of October 1st, 2009, FHA will begin limiting the benefit amounts for Seniors obtaining reverse mortgages. Overall, the benefit amount will be 10% less after October 1st vs. prior to October 1st.
In a world where home values have dropped, assets have diminished, the COLA for SS is 0% and healthcare is continually becoming more expensive...this is not good news.
Some recent good news though - the loan limit for Reverse Mortgages might stick at $625,500 for the time being...so while it won't change the principal limits available to homeowners, it will at least let them base their benefit off of a higher amount.
In a world where home values have dropped, assets have diminished, the COLA for SS is 0% and healthcare is continually becoming more expensive...this is not good news.
Some recent good news though - the loan limit for Reverse Mortgages might stick at $625,500 for the time being...so while it won't change the principal limits available to homeowners, it will at least let them base their benefit off of a higher amount.
Senior Education Events in October and November
The Senior Education Network is holding a series of events in October and November at the Southampton Free Library in Southampton, PA. Additionally, events are forming at the
Visit www.SeniorEdNet.com and click on “Upcoming Events” for full details including upcoming events calendar.
Topics for the
· Social Security / Medicare
· Senior Housing Options
· Staying Fit and Healthy over 65
· Long Term Care Insurance Basics
· Reverse Mortgages
· Practical Estate Planning / Medicate Laws
· Home Health and Medicare Eligibility
· Understanding Hospice Care
· An Overview of Long Term Care
The Senior Education network is a volunteer organization – these are not sales presentations.
9/18/2009
Seniors Saved from Foreclosure - Reverse Mortgages Save the Day
Many of the foreclosures we are seeing are falling into two categories:
1) Seniors
2) Single Female Parents
Reverse Mortgages CAN BE USED to save seniors from foreclosure.
Saving a homeowner from foreclosure with a reverse mortgage is a success story we should all look to create. Who do you know that needs help today? Introduce them to this web log - or please feel free to contact me with questions.
Thank you - and have a great weekend!
1) Seniors
2) Single Female Parents
Reverse Mortgages CAN BE USED to save seniors from foreclosure.
- Criteria for reverse mortgages include age and property value.
- Criteria not factored is credit rating, employment, assets or ability to repay the loan.
Saving a homeowner from foreclosure with a reverse mortgage is a success story we should all look to create. Who do you know that needs help today? Introduce them to this web log - or please feel free to contact me with questions.
Thank you - and have a great weekend!
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