Blog — Page 598 of 887 — First Rate Financial Group

31

Oct

Home Mortgage Tips

62 or Older? 3 Reasons Why a Reverse Mortgage Might Be the Perfect Financial Solution for You

62 or Older? 3 Reasons Why a Reverse Mortgage Might Be the Perfect Financial Solution for You Are you and your spouse starting to move into your retirement years? If so, you already know that you are going to need a solid financial plan for when your primary sources of income are no longer bringing money in. If you have invested in your retirement, you might be all set. However, what if your house makes up the majority of your net worth?

Let’s take a quick look at three reasons why a reverse mortgage might be a great way to unlock the equity you’ve built up in your home.

Reason #1: This Is Your Last Home

To qualify for a reverse mortgage, you have to own your home or be very close to paying off any outstanding mortgage debt. A reverse mortgage is money borrowed against the equity in your home, which is considered collateral. So, if staying in this house is your long-term plan, then a reverse mortgage should be a good fit.

Note that it is not impossible to buy a new home or move when you have a reverse mortgage. You simply have to pay the outstanding balance as with any other loan or mortgage product.

Reason #2: You Don’t Plan On Leaving Your House To Anyone

It is important to note that when you or your spouse dies, your reverse mortgage becomes due. In most circumstances, the house is either sold or transferred to cover the outstanding amount of the mortgage. This means that anyone inheriting the house is going to inherit the reverse mortgage as well, leaving them responsible for the outstanding balance.

If you do not have any children, or if they are already financially stable and not in need of an inheritance, you may not have to leave your house to anyone. This makes a reverse mortgage a good source of extra cash.

Reason #3: You Can Afford Taxes And Upkeep

Finally, don’t forget that with a reverse mortgage, you are still responsible for taxes, insurance and maintenance costs. Falling behind on these items can cause your reverse mortgage to become repayable immediately. If you can afford these costs without having to stretch, then you’re in good shape.

If you are looking to make more of your home equity as a financial asset and both you and your spouse are 62 or older, reverse mortgages are an excellent idea. To learn more about these financial products and your options, contact us today. Our professional team of mortgage advisors is happy to show you why a reverse mortgage is a good fit.

30

Oct

By support

Mortgage Rates

What’s Ahead For Mortgage Rates This Week – October 30, 2017

Last week’s economic news included readings on new and pending home sales and weekly reports on mortgage rates and new jobless claims.

New Home Sales Exceed Expectations; No Growth for Pending Sales

September sales of new homes reached a 10-year high with a seasonally-adjusted annual rate of 667,000 new homes sold. Analysts said that high demand drove September sales past the expected rate of 555,000 sales and August’s reading of 561,000 sales of new homes. September’s reading was 19.9 percent higher than for August and was 17 percent higher year-over-year. September’s reading was 8.60 percent higher for year-to-date sales of new homes. This news may encourage builders to ramp up new home construction, but the widespread damage caused by hurricanes and fires will account for rebuilding thousands of previously-owned homes in the coming months.

The national average price for a new home was $319,700 as compared to $314,700 year-over-year. Real estate professionals said that it would take five months to sell all new homes currently available.

Pending home sales did not change from August to September. The Commerce Department reported no change from August’s reading of – 2.80 percent. Low inventories of pre-owned homes and affordability concerns may have sidelined would-be buyers as competition for available homes and home prices rose.

Regional results for pending sales were mixed. The Northeast region reported 1.20 percent growth in pending home sales, while the Midwest reported 1.40 percent growth and the West topped regional pending sales rates with 1.90 percent growth. The Southern region posted -2.30 percent fewer pending sales; hurricanes likely accounted for fewer contracts signed in September. Year-over-year pending home sales were lower in all regions.

Weekly Mortgage Rates, New Jobless Claims Rise

Mortgage rates rose across the board last week. Freddie Mac reported that averaged rates for a fixed rate mortgage rose by six basis points for 30-year and 15-year mortgages. The average rate for a 30-year fixed rate mortgage was 3.94 percent; the average rate for a 15-year fixed rate mortgage was 3.25 percent. The average rate for a 5/1 adjustable rate mortgage rose four basis points to 3.21 percent. Discount points averaged 0.50 percent for fixed rate mortgages and 0.40 percent for 5/1 adjustable rate mortgages.

New jobless claims rose to 233,000 claims, which matched expectations and exceed the prior week’s reading of 223,000 first time claims, which was a 44-year low. The jump in first-time claims is not due to layoffs as employers report shortages of skilled candidates to fill job openings.

What‘s Ahead

This week’s scheduled economic news includes readings on Case-Shiller home prices, construction spending and labor sector readings on private and public-sector employment. The national unemployment rate will be released along with weekly readings on mortgage rates and new jobless claims.

27

Oct

By support

Home Buyer Tips

Buying an Older Home? Watch Out for These 3 Key Flaws That Could Spell Trouble

Buying an Older Home? Watch Out for These 3 Key Flaws That Could Spell Trouble Are you a fan of homes with a bit more character than newer, modern designs? Whether in pristine condition or more of a “fixer upper,” older homes are incredibly popular in cities across the country. However, there are some key factors to consider if you’re thinking about buying a home built decades ago before modern standards were enforced.

Let’s take a look at three key design issues that you will need to be aware of if you’re thinking about buying an older house.

Old Electrical Designs Can Be A Significant Fire Hazard

No matter when a home was built, it’s almost guaranteed to have electrical wiring running through walls to supply rooms with lighting and power outlets. However, if the wiring was run in decades past it may be with older cords that are less able to withstand a modern workload. A quick check of the circuit-breaker panel or fuse box and the wires leading from it can give an idea just how old the wiring is. As older designs can be a fire hazard, you will want to ensure the wiring is up to date.

Poor Plumbing Design Can Lead To Rot Or Worse

Plumbing can also be an issue in older houses – especially those in states that experience a cold winter. Water pipes tend to expand and contract due to temperature, which can lead to stress and leaks over time. Moreover, even though older pipes are typically made of metal, they can still wear out. The last thing you need is to wake up to a flooded basement, so be sure to have the plumbing professionally inspected.

Is The Roof And Insulation Strong Enough?

While the roof might look solid from the outside, it may not be as well put together on the inside. Even the smallest of holes or leaks in roof membrane can wreak havoc on the structural integrity of the roof. It’s worth spending some time in the attic to inspect the inside of the roof, the condition of the insulation and how well the entire structure is holding up.

While the above list might sound a bit scary, it isn’t meant to turn you away from buying an older character home. If you’re diligent in checking out the home’s history and invest in a professional inspection, you’ll stay safe. When you’re ready to explore a mortgage for a character home, contact your trusted mortgage professional.