A Modern Mortgage: The All In One Loan

You’ve probably figured out by now that I’m a pretty big fan of the All In One Loan. I encourage you check out the simulator so that you can see how differently this mortgage works. The simulator shows a side by side comparison of a traditional 30 year mortgage to the All In One Loan that I think you’ll find interesting. [Read more…]

Resource Guide on the All In One Loan

I recently put together a new resource guide on the All in One Loan. The more I learn about this program, the more I appreciate this mortgage. I think it is probably the best mortgage available for most people if they qualify for it. [Read more…]

What is an Offset Mortgage?

An “offset mortgage” also known as an “all-in-one loan” is basically a 30-year home equity line of credit that includes a sweep-checking account where the deposits go directly to paying the principal balance. Homeowners can still access the funds they deposit (and their home equity) from the account, using it to pay their day-to-day bills, vacations, home improvements, whatever the credit line has available. It is essentially a “normal” checking account. [Read more…]

Retirement, random thoughts and your mortgage

I read an interesting article about planning for retirement. This is a topic that I find very important. I’m not a financial planner, however as a Mortgage Professional I see a financial snapshot of what people have when applying for a mortgage. I concur with this article from CNBC, most people do not have enough money saved up for their golden years. [Read more…]

Upcoming changes to FHA Reverse Mortgages

A reverse mortgage is a program that is designed specifically for senior citizens (62 years and older). Unlike a traditional mortgage where monthly mortgage payments are required, reverse mortgages do not require a monthly mortgage payment (property taxes and home owners insurance is still due). 

Reverse mortgages are a great option for seniors to consider if they want to reduce their monthly cash flow or require a sum of cash. 

Recently HUD has announced they are changing some of their reverse mortgage (home equity conversion mortgage aka “HECM”) program guidelines which will go into effect with case numbers issued April 1, 2013 and after.

From HUD’s Press Release:

As discussed in its Annual Report to Congress, FHA will consolidate its Standard Fixed-Rate Home Equity Conversion Mortgage (HECM) and Saver Fixed Rate HECM pricing options. This change will be effective for FHA case numbers assigned on or after April 1, 2013. The Fixed Rate Standard HECM pricing option currently represents a large majority of the loans insured through FHA’s HECM program and is responsible for placing significant stress on the MMI Fund. To help sustain the program as a viable financial resource for aging homeowners, the HECM Fixed Rate Saver will be the only pricing option available to borrowers who seek a fixed interest rate mortgage. Using the HECM Fixed Rate Saver for fixed rate mortgages will significantly lower the borrower’s upfront closing costs while permitting a smaller pay out than the HECM Fixed Rate Standard product, thereby reducing risks to the Mutual Mortgage Insurance Fund. Read FHA’s new HECM Mortgagee Letter.

If you would like more information about a reverse mortgage for you or your parents on a home located anywhere in Washington state, please contact me.

Does Santa qualify for a Reverse Mortgage?


EDITORS NOTE: This post is a re-print of an article that I wrote a couple years ago. With the holidays upon us, I couldn’t resist the opportunity to share this again and also remind my readers that we do offer reverse mortgages at Mortgage Master Service Corporation.

If Santa and the Mrs. would like to add a steady tax-free income each month while he’s volunteering, making toys and traveling around the world, he may want to consider how a Reverse Mortgage could benefit their lives.

Reverse mortgages can be a financial tool for Seniors who would like to have access to additional funds.   A reverse mortgage is essentially a loan against home equity for borrowers who are at least 62 years old.

Unlike a traditional mortgage where you make monthly payments, a reverse mortgage pays from your equity.   Instead of paying down your balance every month, your loan is actually growing as it provides tax free income to the Senior.  The mortgage is paid off when the last senior leaves the home.  Here is a calculator to see how much cash you may qualify for utilizing a reverse mortgage.

Reverse mortgages are easy to qualify for as long as their is enough equity in the property:

  • Youngest borrower must be 62 years of age or older.
  • No income or credit score requirements.
  • Counseling is required from a HUD approved agency (no cost to the borrower).
  • Property must be the primary residence.  (It does not need to be mortgage free).

In addition, reverse mortgages are non-recourse (the borrower can never owe more than the appraised value).

Santa and Mrs. Claus can use a reverse mortgage to:

  • receive a lump sum of money (with no payments due until the last borrower leaves the home).
  • receive a monthly tax free payment.
  • purchase a primary residence.

The money can be used for anything they wish from bridging the financial gap between what they planned for retirement and the reality of retirement to vacationing or what’s on their Christmas list.

I’m pleased to be able to offer Reverse Mortgages and the Family Opportunity Mortgage programs both designed to help Seniors. Questions?  Please contact me or your local Mortgage Professional.

Seniors Facing Financial Whammy Should Consider a Reverse Mortgage

From the front page of Monday’s Seattle PI: Seniors face financial ‘quadruple whammy’.

The article features  a photo Seniors in line at the West Seattle Food Bank and begins with this sentence:

“Like many retirees, Wilma Johnson notices the price of everything in Seattle going up while the interest on her savings is flat to dropping.

“I told my cat she’s going to have to go out and catch her own food,” the 86-year-old Broadview homeowner said.

With a reverse mortgage, seniors qualify based on their home equity and their age (62 yearsSeniorkitten_3  old is the youngest allowed on title) and can receive either monthly payments, a lump sum of cash or a home equity line of credit that they can draw on when needed.  If a Senior owns their home and has enough equity, there is no reason for them to struggle financially during their golden years.  Reverse mortgages do not require income or credit for qualifying.  It’s definitely worth consideration when it can improve quality of life. 

Wilma, your cat doesn’t need to catch her own food–consider a reverse mortgage


Reverse Mortgages allow Seniors Quality of Life

Last Sunday’s Seattle Times featured an article by David Ranii: Seniors move forward on reverse mortgages.  Reverse mortgages provide tax free income by accessing the equity in the Senior’s home.  There are no credit or income qualifications, the youngest on title must be at least 62 years old.    Seniors can either receive monthly equity payments, a lump sum of cash or set up an equity line to draw on without mortgage payments.   Loan amounts are factored by how much equity is available in the property and the Seniors age. 

Many do not save enough for retirement and a reverse mortgage could be a great resource to help a senior enjoy their golden years.   In the Seattle Time’s story, 86 year old Trudy

took $2,000 in cash up front and established a line of credit that enabled her to withdraw an additional $3,000 last year — money she used to fix her roof, among other things.

Trudy’s son suggested the reverse mortgage which has allowed her to stay in her home.   Trudy says

“The reverse mortgage is a big help”.

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