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Showing posts from 2018

Reverse Mortgage Insights from a Las Vegas Certified Reverse Mortgage Professional

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Rick R. Rodriguez was interviewed by Reverse Mortgage Daily recently to offer his insights on the impact of rising interest rates to the reverse mortgage program.  The Federal Government recently increased interest rates once again which created a ripple effect throughout the mortgage industry.  Prior to October 2017, the reverse mortgage program experienced very little change from interest rate fluctuations.  However, since HUD made significant program changes in October 2017 the program is more susceptible to interest rate swings than ever before.  These swings are directly effecting the amount of equity that homeowners can qualify for under the program, which in some cases can prevent them from obtaining a reverse mortgage. Reverse Mortgage Daily wrote a recent article titled "HECM Originators Feel Impact of Rising Rates", in which they interviewed Rick R. Rodriguez, a branch manager at Nationwide Equities in Las Vegas, NV.  One of his clients was in the process of

Rick Rodriguez Offers Insights in Reverse Mortgage Daily

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The reverse mortgage industry's main source of news, Reverse Mortgage Daily (RMD), recently published an article detailing some of the preferred educational resources from some of the top reverse mortgage specialists in the industry.  Rick Rodriguez, Certified Reverse Mortgage Professional, who has been specializing in reverse mortgages since 2005 was interviewed by RMD for his insights. In the article, Rodriguez states that most consumers have already done research on reverse mortgages and are primarily looking to speak with a reverse mortgage professional to go over any concerns and dispel any myths.  He utilizes company resources and materials to provide additional information to consumers, but if he senses that the they are in need of a bit more confidence in the product itself, he points them to third party resources such as U.S. Department of Housing and Urban Development or National Reverse Mortgage Lenders Association, as well as to texts by Wade Pfau or Barry Sac

3 Unknown Secrets About Reverse Mortgages

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What a reverse mortgage is and how it works continues to be a mystery to many, but here we will begin to uncover some of the secrets about one of the most misunderstood loan programs that has ever existed.  1. A reverse mortgage can be used to finance the purchase of a home.   As an alternative to purchasing a home with cash or taking on a mortgage with payments, a reverse mortgage can help to preserve cash for retirement and expand the purchasing power for a new home.  A one-time cash payment is made at closing, the reverse mortgage finances the remainder of the purchase price, and the buyer is required to live in the home as their primary residence and pay the property taxes, maintenance fees and insurance. 2. A reverse mortgage credit line can pair well with retirement planning strategies.   Some financial planners are recommending to their clients to take out a reverse mortgage line of credit to have on standby throughout retirement.  They work like home equity l

Reverse Mortgage Basics: The Loan Process

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The perception of obtaining a mortgage loan is like handing your car over to the mechanic and waiting anxiously in the waiting room for the dreaded news to be delivered.  "That'll be $$$$!" Part of the dread is that you have limited knowledge on cars and you can't see step by step what the mechanic is doing.  Well, let's remove the veil and allow you to take a look under the hood of the reverse mortgage loan process. The first step is awareness and education of the reverse mortgage loan, which is now easily attainable either through the TV, radio, or your own research.  We recommend meeting with a qualified reverse mortgage professional who has a vast amount of experience and knowledge with reverse mortgages.  This is where you learn about specific numbers, what you qualify for, and receive an analysis of your particular situation. Why go to someone who doesn't specialize in this product and has maybe never put one together?  It's like going to your

Reverse Mortgage Basics: Qualifying for a Reverse Mortgage

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What does it take to obtain a reverse mortgage?  Whether you are looking to use a reverse mortgage to either refinance or buy, there are basic requirements that every borrower must meet.  Here they are: Borrower must be at least 62 years of age Property must be your primary residence  Property must be maintained routinely and meet FHA appraisal inspection A minimum of 50% equity needed for a refinance or 50% down payment needed for a purchase (note:  these are average percentages and vary by age of youngest borrower)  In addition, every borrower(s) must pass the Financial Assessment as required by the Housing and Urban Development department (HUD).  The Financial Assessment requires each borrower(s) to have sufficient income to meet monthly housing and credit expenses, as well as a satisfactory 24 month payment history of those said expenses.  There is no minimum FICO score required, and there is some flexibility with each borrower's scenario and the opportunity to expla

Reverse Mortgage Basics: Reverse Mortgage Insurance

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A common question is why do I have to pay mortgage insurance on a reverse mortgage? The answer is protection.  For the borrower, a federally-insured reverse mortgage comes with the benefit that you will receive loan payments as outlined by the terms of the loan, and you will never owe more than your home is worth. This benefit is guaranteed by the Federal Housing Administration through its Home Equity Conversion Mortgage program, which is the primary reverse mortgage program available on the market today. In order to be protected and receive that guarantee, borrowers pay for it through reverse mortgage premiums.  There is a one-time upfront mortgage insurance premium at the time of closing the loan, as well as an annual insurance premium which are both paid to FHA. Currently, as of the date of this article, the upfront mortgage insurance premium is a flat 2% of the appraised value of the home or the FHA maximum lending limit of $679,650, whichever is less.  The ongoing annual prem

Reverse Mortgage Basics: Title on Home

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Do I own my home with a reverse mortgage? It's perhaps still the biggest misconception surrounding a reverse mortgage to this day. Many believe the bank or lender will become the owner of the property and the homeowner simply becomes a tenant of their own home.  Unfortunately, this misconception has discouraged many people from looking any further into a reverse mortgage for fear of losing their property rights.  Let's make it clear right here, right now:  A Reverse Mortgage Does NOT Take Away The Title Rights Of A Homeowner. A reverse mortgage is just a lien against the property and shows up on the title records as such.  The borrower(s) who obtains the reverse mortgage is the same individual(s) who will hold the title of the property either in their individual names or a living trust.  Also, the homeowner has the absolute right to pay off their reverse mortgage or sell their home at any point in time without any restrictions, penalties or without requiring to get permissi

Reverse Mortgage Basics: It's A Mortgage

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It's always good to go back to the beginning and make sure we got the basics down.  As reverse mortgages continue to evolve in how they are advertised by various companies as well as how they are used by consumers, one can get muddled and lose sight on the basics of the program. So, let's not forget that a reverse mortgage is simply a mortgage.  In other words, a lien against the home. The difference with this mortgage is that it offers flexible payment options.  There is no requirement to make a monthly mortgage payment, so a borrower can choose each month whether he or she wants to make no payment or a payment for any amount they wish.  Most borrowers elect not to make a payment each month.  However, some may want to make an interest only or a principal & interest payment to keep the loan balance from increasing over time.  The point here is that a reverse mortgage gives you more choices and greater control over your cash flow each month. With a reverse mortgage ther

Reverse Mortgage Volume Hits A Peak

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The number of reverse mortgages done in the month of January 2018 was 6,313, which was an increase of 32.5 percent month over month from December 2017, according to the latest data from Reverse Mortgage Insight .    This also marks the best month for the reverse mortgage industry since March 2011.  The increase can be attributed to changes made by the Department of Housing and Urban Development (HUD) in October 2017, which caused a rush of applications by homeowners who wanted to secure larger principal limits and equity proceeds.  For more information on reverse mortgages and other related topics contact: Rick R. Rodriguez Certified Reverse Mortgage Professional (CRMP) NMLS# 473353 Toll Free  (877) 500-0454 Local (702) 460-6222 www.reversemortgagecertifiedprofessional.com

Las Vegas Home Prices Among Tops in US

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Well, the real estate market in Las Vegas continues to roll up against all odds.  According to Standard & Poor's S&P CoreLogic, Las Vegas saw a  10.6 percent increase in November 2017 as compared to a year earlier.  This sharp increase is second only to Seattle which saw a 12.7 percent increase over the same time.  Last year was among the best ever for home sales totals in Southern Nevada.  The Greater Las Vegas Association of Realtors reported that 46,000 homes were sold in 2017, up 12 percent from 2016 and the the third-highest total on record according to the GLVAR. For 2018, Las Vegas is expected to be the top or near the top for home appreciation increase nationwide.  As one can see driving around the valley, construction is as active as it has been in sometime.  Areas of desert are quickly being transformed into communities and homes.  However, the inventory of houses for sale at the end of December 2017 was down 36 percent from a year earlier, according to the GLV

Home Prices Contunue To Rise

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Nationwide home prices jumped up 7% in November as compared to the previous year.  CoreLogic, a real estate research firm, published a recent report with the results.  Read more here . Contact Rick R. Rodriguez for more information Rick R. Rodriguez Certified Reverse Mortgage Professional (CRMP) NMLS# 473353 Toll Free  (877) 500-0454 www.reversemortgagecertifiedprofessional.com