AB Reverse

It is a reverse mortgage for you?

2010-01-20T22:07:00.000-08:00

Getting a reverse mortgage is a big step and it will be something very important to discuss about it.
Many people will say be careful because it will eat all the equity of the house or don't get it because are bad for some reason they don't even know.
The reality is not everybody will benefit for such program.
When you consider it just ask yourself 5 questions:

Do you really need a reverse mortgage? Why are you interested in these loans? What would you do with the money you would get from one? Are the needs you intend to meet really worth the high total cost of these loans? If you want to take a dream vacation, a reverse mortgage is a very expensive way to pay for it. Investing the money from these loans is an especially bad idea, because the loan is highly likely to cost more than you could safely earn. If anyone is trying to sell you something and recommending you use a reverse mortgage to pay for it, that’s generally a good sign that you don’t need it and shouldn’t be buying it.
Can you afford a reverse mortgage? These loans are very expensive, and the amount you owe grows larger every month. The younger you are when you take out a reverse mortgage, the more the compound interest will grow, and the more you will owe. On the other hand, due to high up-front costs, these loans can be especially costly if you sell and move just a few years after taking one out.
Can you afford to start using up your home equity now? The more you use now, the less you will have later when you may need it more, for example, to pay for future emergencies, health care needs, or everyday living expenses. This is especially so if your needs suddenly grow or your income does not keep pace with inflation. You may also need your equity to pay for future home repairs or a move to assisted living. If you are not facing a financial emergency now, then consider postponing a reverse mortgage. Homeowners who decide to wait have “a reasonable expectation of securing a better product at a lower cost in the not-too-distant future,” according to a report by the Fidelity Research Institute.
Do you have less costly options? Do you have other financial resources that you could use instead of taking out a loan? If you don’t, and if you could easily make the monthly repayments on a home equity loan or home equity line-of-credit, these alternatives are much less costly than a reverse mortgage. Many state and local governments offer very low-cost loans for paying your property taxes or making home repairs. Have you seriously looked into the costs and benefits of selling your home and moving to a less expensive one?
Do you fully understand how these loans work? Reverse mortgages are quite different from any other loans, and the risks to borrowers are unique. Before considering one, you need to do your homework carefully and thoroughly.

If you are still insecure, have any doubt or question about it, you can always call me at 949-235-9422 or email me at abreverse@gmail.com or just leave a comment to this blog.
thank you for the attention
Antonio Bevacqua

Free e-books

2010-01-18T14:17:00.000-08:00

Hi everyone,

last night i was browsing the web and I found some good free e-books,

click here to check them out.

There are all made by NRMLA ( National Reverse Mortgage Lenders Association ), Fannie Mae and AARP

PGA 2010 without Tiger Woods

2010-01-08T18:57:00.000-08:00

The PGA Tour's is already going in Hawaii without the greatest Tiger Woods.
"At the moment, he's hiding, which I don't think is the right way to go about it. I think we need to see him come out here and apologize," says golfer Retief Goosen.
His 14 majors and 71 PGA tour wins have ensured that Tiger has held
the Number One position for the most consecutive weeks and for the greatest total number of weeks and he still enjoys a healthy 6 point lead over his nearest rival on the rankings table. It's a massive void, but players young and old will attempt to fill it in the coming weeks - while he is away.
"I think there is an opportunity for a handful of guys who have aspirations to be Number One. This might be a time when it's a lot more possible than it has been before," says golfer Geoff Ogilvy.
PGA Tour Commissioner Tim Finchem seems very optimistic for this year with or without Tiger Woods.
“We are going to be successful in ’10,” said Finchem, adding he had not spoken to Woods and did not know when Woods would resume playing golf. “If Tiger is out for a couple of months or eight months or a year, we’re going to have a successful year.
“It won’t be at the same levels without our No. 1 player, there’s no question about that. No sport would be at the same level without its No. 1 player. But I think the doom and gloom needs to go away, and, frankly, it’s misleading to our fans.”
Finchem’s defense of Woods coincided with indications that the sports media have already separated Woods’s on-course prowess from his off-course predilections. Woods was voted male player of the year by the Golf Writers Association of America by an overwhelming margin over Steve Stricker, with most ballots returned after the scandal erupted.

Golfer Jerry Kelly says, "He is not the sport. Golf will move on. When Tiger Woods retires, no matter if it's tomorrow or if it's 10 years or 20 years from now, the game of golf will have it's stars. The game of golf will survive."

Though, he isn't likely to make a hasty comeback to save his throne, whenever he comes back, it clearly promises to be one of the sports stories of the year

Orange County Home prices: The worst is over?

2009-12-03T01:11:00.000-08:00

Unfortunately not!

Prices are still dangerously high compared to incomes and rents. Banks say a safe mortgage is a maximum of 3 times the buyer's annual income with 20% downpayment. Landlords say a safe price is a maximum of 15 times the house's annual rent. Yet on the coasts, both those safety rules a

re still being violated. Buyers are still borrowing 6 times their income and putting only 3% down, and sellers are still asking 30 times annual rent, even after recent price declines.Salaries and rents prove that prices will keep falling for a long time. Anyone who bought a "bargain" this time last year is already sitting on a very painful loss.

It's still much cheaper to rent than to own the same size and quality house, in the same school district. On the coasts, annual rents are 3% of purchase price while mortgage rates are 6%, so it costs twice as much to borrow the money than it does to borrow the house.Renters win and owners lose! Worse, total owner costs including taxes, maintenance, and insurance come to about 9% of purchase price, which is three times the cost of renting and wipes out any income tax benefit.

The bottom will be here when buying a house to rent out clearly makes money. Then you'll know it's safe to buy for yourself because then rent could cover the mortgage and all expenses if necessary, eliminating most of your risk.So for example, it's borderline to pay $200,000 for a house that would cost you $1,000 per month to rent. That's $12,000 per year in rent. If you buy it with a 6% mortgage, that's $12,000 per year in interest instead, so it works out about the same. Owners can pay interest with pre-tax money, but that benefit gets wiped out by maintenance costs and property tax, equalizing things. It is foolish to pay $400,000 for that same house, because renting it would cost only half as much per year, and renters are completely safe from falling house prices.

It's a terrible time to buy when interest rates are low, like now.House prices fall as interest rates rise, because a fixed monthly payment covers a smaller mortgage at a higher interest rate. Since interest rates have nowhere to go but up, prices have nowhere to go but down.

It is far better to pay a low price with a high interest rate than a high price with a low interest rate, even if the mortgage payment is the same either way.

Your property taxes will be lower with a low purchase price.
A low price gives you the ability to pay it all off instead of being a debt-slave for the rest of your life.
Paying a high price now may trap you "under water", meaning you'll have a mortgage larger than the value of the house. Then you will not be able to refinance because there you'll have no equity, and will not be able to sell without a loss. Even if you get a long-term fixed rate mortgage, when rates inevitably go up the value of your property will go down. Paying a low price minimizes your damage.

There is a massive and growing backlog of latent foreclosures. Millions of owners have simply stopped paying their mortgages, and the banks are doing nothing about it, letting the owner live in the house for free. If a bank forecloses and takes possession of a house, that means the bank is responsible for property taxes and maintenance. Banks don't like those costs. If a bank then sells the foreclosure at current prices, the bank has to admit a loss on the loan. Banks like that cost even less. So there is a tsunami of foreclosures on the way that the banks are ignoring, for now. To prevent a justified foreclosure is also to prevent a deserving family from buying that house at a low price. One day, those foreclosures will wash over the landscape, decimating prices, and benefiting millions of families which will be able to buy a house without a suicidal level of debt, and maybe without any debt at all!

These are just few think why I think prices will still falling but if you have a different point of view I want to hear your voice so please write a comment!

reverse mortgage up 20% from 2008

2009-08-22T01:18:00.000-07:00

Seniors’ portfolios hammered by the stock market decline are getting a boost from reverse mortgages. Such mortgages allow seniors to get monthly payments based on the equity value in their homes
– the amount that the value of the home exceeds any mortgage on the home.
It’s reported that in recent months the number of reverse mortgages backed by the government jumped nearly 20 percent from the same period last year. And it’s not just the stock market decline that’s at work: a tough housing market has made it more difficult for seniors to sell their homes and downsize.
Especially for older individuals who intend to remain in their homes for the rest of their lives, the reverse mortgage may be the ideal way to deal with a cash shortfall.
It’s especially attractive because it can provide monthly payments to the homeowner for life and does not have to be paid off until the owner’s death or when the home is sold.
The amount of cash flow that a homeowner can get out of a reverse mortgage mainly depends on four factors: the homeowner’s age, the amount of equity in the homeowner’s home available to support the loan, the interest rate on the reverse mortgage and closing costs.
Aging has its compensations, at least in figuring a reverse mortgage payout. The older the homeowner, the better, because the payout increases with the homeowner’s age on the date the mortgage begins.
For homeowners younger than 70, the payout rate usually will be unattractive. But as age increases to 70 and beyond, the payout rate rises markedly, especially for larger loan amounts.
If there’s no mortgage on the home the cash flow from a reverse mortgage will be higher than if market value. But even if there is a mortgage on the home a reverse mortgage can be attractive, depending on the amount of the mortgage and the value of the home.
A rough idea of the amount of monthly payments that can be obtained from a reverse mortgage can be gleaned from online calculators. Take, for example, the calculator at the AARP website. It shows that a 71-year old Sarasota, Florida homeowner can get a monthly cash flow of $851 if his mortgage-free home is worth $250,000.
Reverse mortgages are not simple. A good knowledge of the program before you get in to is raccomanded . For more information call 714-887-8137