Blog – Page 846 of 915 – Fred Gruber - First Rate Financial Group

24

Mar

Home Mortgage Tips

Considering a Reverse Mortgage Loan? Here’s What You Need to Know

Considering a Reverse Mortgage Loan? Here's What You Need to Know Many seniors are looking for a great way to improve their financial situation. Retirement or semi-retirement can be difficult due to the need to live on a fixed income. Some may have been unable to save enough in their working years, or their accounts may have been hit hard by stock market fluctuations. Still others are feeling the effects of inflation and the rising costs of medical care and general living expenses. If you are like many other seniors, you may not have a huge cash reserve available in your bank account, but you may have a sizable nest egg in your home. The fact is that you can tap into that equity without selling your home or taking on a mortgage payment when you apply for a reverse mortgage.

What Is A Reverse Mortgage?

A reverse mortgage is a unique type of loan that utilizes the current equity in your home and allows you to make regular withdrawals from that equity. Rather than you making a payment to a lender, the lender pays the funds to you. The terms of the mortgage are structured so that you will never owe more money on the reverse mortgage than the home is worth. When you decide to sell it or when your estate is being settled, the home’s value will pay off the mortgage. This essentially gives you the opportunity to keep living in your home and to use the equity now when you need it most.

Is This The Right Option For You?

A reverse mortgage is not suitable for everyone, but it may be suitable for you. You can easily learn more about the amount of payments that you could receive on a monthly basis if you were to apply for a reverse mortgage, and you can consider how these payments would ease your financial concerns. This loan will decrease the amount of equity you have in your home over time. Therefore, if you have plans to sell your home later and use the equity for other retirement plans, you should carefully consider if the reduction in equity is feasible for your situation and goals.

One of the best steps that you can take is to learn more about this option. You will not know if a reverse mortgage is suitable for your financial needs and long-term goals unless you take the step of speaking with a loan agent.

23

Mar

By support

Market Outlook

What’s Ahead For Mortgage Rates This Week – March 23, 2015

Whats Ahead For Mortgage Rates This Week March 23 2015 Last week’s events included the National Association of Home Builder’s Housing Market Index, which fell to its lowest reading since last summer. Other news included reports on housing starts and building permits, the FOMC meeting statement and Fed Chair Janet Yellen’s press conference.

Home Builder Confidence Falls, Building Permits Rise

The NAHB Wells Fargo Housing Market Index fell by two points for a reading of 53 in March. The expected reading was 57. Analysts said that this proves that lower mortgage rates and steady job growth aren’t fueling housing markets as expected. NAHB chief economist David Crowe also cited supply chain issues such as a shortage of available lots, labor shortages and tight mortgage underwriting standards. Home builders remain optimistic that as labor markets continue to improve and more home buyers enter the market during the traditional spring and summer buying season, that builder confidence will also grow.

The Department of Commerce reported that building permits for February rose from January’s reading of 1.06 million to 1.09 million. This represents a 3.00 percent increase and was the highest reading since October. Permits fell for single family homes fell by 6.20 percent in February, but were 2.80 percent higher year-over-year. Single family permits account for 75 percent of building permits issued.

Housing starts fell dramatically due to bad weather. The Northeast saw housing starts fall by 56 percent due to extreme snowfall; Housing starts in the Midwest fell by 37 percent and the West saw housing starts decline by 18.20 percent in February. The South reported a 2.50 percent decrease in housing starts, but since nearly 50 percent of housing starts are in the South, this decline is more significant than it appears.

Fed Rates Hold Steady, Mortgage Rates Fall

The Federal Reserve noted in its post FOMC meeting statement that the Fed is in no hurry to raise rates. Citing ongoing concerns about low inflation and a sluggish housing market recovery, the Fed’s policymakers indicated that they don’t plan to rush on raising the target federal funds rate. In her press conference held after the FOMC statement, Fed Chair Janet Yellen reiterated the Fed’s intention to raise rates only when domestic and global economic developments warrant.

Mortgage rates fell according to Freddie Mac with the average rate for a 30-year fixed rate mortgage eight basis points lower at 3.78 percent. The average rate for a 15-year mortgage was four basis points lower at 3.06 percent; the average rate for a 5/1 adjustable rate mortgage was also four basis points lower at an average rate of 2.97 percent. Discount points were unchanged at an average of 0.60 percent for fixed rate mortgages and 0.50 percent for 5/1 adjustable rate mortgages.

What’s Ahead

This week’s housing-related news includes new and existing home sales, the FHFA home price index and FHFA’s home price index. Freddie Mac mortgage rates and weekly jobless claims will also be released as usual on Thursday.

20

Mar

By support

Around The Home

Three Unique Upgrades That Will Drive Your Home’s Resale Price Through the Roof

Three Unique Upgrades That Will Drive Your Home's Resale Price Through the Roof If you are a homeowner, you should always be thinking about ways that you can boost the resale value of your home. Whether you are planning on putting the home on the market, or simply want to be prepared for the future, there are upgrades that can make your property more desirable. Give your home the attention it deserves and you’ll be prepared for whatever may come down the line.

Go Solar With A Home Solar Installation

There’s no doubt that solar power is big in today’s housing market. It’s an excellent resource that will save you money on your utility bills. You could even find yourself in a situation where the power company is actually buying energy from you. It’s also a move that is environmentally-friendly. If you feel a responsibility to the world around you, you will have the peace of mind that comes with reducing your carbon footprint. As energy becomes scarce, solar power is something you can count on. Future buyers will benefit as well.

Install An HVAC System That Does It All

When it comes to your heating and cooling, install a system that will meet all of your needs. Keep your home at a comfortable temperature throughout the year at the touch of a button. Choose an energy saver model that uses the most feasible type of energy source in order to trim costs. When you have a modern system with automation capability, you should see a difference in your utility bills. You’ll also have a huge selling feature to show off when prospective buyers come knocking at your door.

Make the Most of Your Existing Space

Take the space that you have and make sure that you utilize it to its full potential. Whether you create an attic bedroom or a finished basement, making better use of your space will increase your home’s appeal. When it’s time to sell, buyers want to see possibilities and appreciate it more when the work has already been done for them. Give them options and let them make the space their own.

Turn to the Experts for Advice

Call your mortgage professional today to further assist you with questions and solutions when considering an upgrade to your home. You’ll be able to tap into a vast store of knowledge about what works and what doesn’t before investing in any upgrades.