Good morning Memphis! We’ve got some good news for you today on the Real Estate Mortgage Shoppe program. Grab your cup of coffee, pull up a chair and join me, Jo Garner, mortgage officer with Evolve Bank and Trust for some conversation about your home and your pocket book. We have two local experts with us today. Ken Bowley, with Erin McDonald Allstate Insurance Agency and Anthony Bradley, attorney with the Bradley Law Firm. Today’s topic? “Reverse Mortgages, Trusts and Long Term Care Insurance: Financial Tools from the Senior Toolbox”
Ken Bowley, glad to have you around the coffee table again today. Some of our listeners may not have met you last time you were here. Tell us a little about yourself and what you do.
Anthony Bradley, you are a regular on our local television stations and at Talk Shoppe . Tell our listeners a little about you and what you do?
We have some great news this week in the real estate and mortgage world.
Rates are staying low in large part because of the instability in the European markets. Investors want to play it safe and invest in our treasury bills -which help keep our mortgage rates low.
This week The benchmark 30-year fixed-rate mortgage fell to 3.91 percent from 3.92 percent last week. One year ago, the mortgage index stood at 4.66 percent; four weeks ago, it came in at 3.97 percent.
The fixed rate hasn’t moved up since early April, when it was 4.25 percent. The benchmark 15-year fixed-rate mortgage rose to 3.17 percent from 3.16 percent the previous week, while the benchmark 5/1 adjustable-rate mortgage rose to 3 percent from 2.99 percent.
We are seeing more purchase contracts come across the desk which helps the economy as a whole. We are getting grant money and down payment assistance for first time homebuyers and also helping homebuyers who have a house to sell but want to close now on a new bargain dream house. Call me and I can walk you through how to get that deal for yourself.
The applications continue to flood in for homeowners refinancing their homes under the government HARP program that does not require an appraisal. The HARP program (Home Affordable Refinance Program) has turned out to be a great success, especially for homeowners who owe more on their home than the current market value. We are saving homeowners several hundred dollars per month in some cases with minimal out of pocket expense.
Word to the wise: If you have checked with a mortgage company and they have turned you down for the HARP program, you may want to try somewhere else. Since so many mortgage companies have their own set of rules and regulations in addition to the standard Fannie Mae and Freddie Mac HARP rules, ask these questions when you are applying and you will find out really fast if you need to go elsewhere.
First question: Does your bank have restrictions on loan -to-value? If they do, you probably want to deal with a company that does not have a limit.
Second question: Do you have a minimum credit score? Most lenders will accept a credit score of 640 or below as a minimum, but some have their own strict minimum allowed score of 720 or higher. That restriction may be too tight.
Evolve Bank and Trust, where I am, has a minimum score of 640 and no limit on loan-to-value. We can use HARP money on your primary residence, 2nd home and your investment properties.
My very capable assistant, Susan Belew and I would like to talk with you or someone you refer to us. We have a few questions we can ask to do a full evaluation on the financing options available to you. Of course we want to go with the option that saves you the most money and helps you achieve your goals. The best number to reach us personally (not on the air) is (901) 482 0354. That number again is (901) 482 0354. You can also catch our past podcasts and contact info on my blog www.mortgageloansblog.com
Today our topic is “Reverse Mortgages, Trusts and Long Term Care Insurance: Financial Tools from the Senior Toolbox.” If you have something helpful to share about this topic or if you want to talk about your credit, or finding down payment assistance, or getting a renovation and repair mortgage, purchasing a home, refinancing one, and the list goes on and on….call us and let’s talk at (901) 535-WREC.
Let’s dig into the tool box and see what solutions we can find for some of our listeners.
Ken Bowley, from Erin Mcdonald Allstate Insurance Agency, you are our expert today when it comes to long term care insurance and how to get the best from it. What tools do you want to demonstrate for us today?
Anthony Bradley, of the Bradley Law Firm, you are well-known for being an expert when it comes to dealing with revocable and irrevocable trusts. What tools would you like to show us today that can give us some solutions to our challenges?
Commercial Break
2nd segment we try and focus on Anthony and Ken’s topics Here is where we can ask designated questions to Anthony and Ken
Commercial Break on the half hour
3rd Segment we can try and get in some points from Jo Garner on reverse mortgages as a tool . If possible let’s try and integrate that tool with some of Anthony’s and Ken’s
Commercial Break
Last segment is very short. Our closing music starts at 9:57am.
In the last segment we do the Real Estate Tip of the Week.
Questions for Jo Garner: One of the financial tools in our Senior Toolbox today is the reverse mortgage. When would a homeowner want to pull this tool out and use it?
First of all, the reverse mortgage program is NOT for everyone. In fact, before applying for a reverse mortgage, the homeowner is required to complete an educational/counseling session with a HUD approved financial advisor .
A reverse mortgage is a loan designed to allow seniors to draw on the equity in their homes either by a lump sum payment or by monthly installments paid TO the homeowner thus providing income even after retirement. The reason this type of mortgage is called a “reverse mortgage” is because the money goes directly to the home owner instead of into paying for the home. Eventually the money paid to the homeowner is repaid with interest, however it generally doesn’t become due until the homeowner leaves the home due to death, move, etc.
The biggest winner on the reverse mortgage is a homeowner 62 years old or older who is cash poor but house rich with lots of equity in the house. The closing costs are about double the amount of a traditional mortgage and the cost are backed out of the lump sum or payments given to the homeowner by the reverse mortgage company. Because of the higher cost on these loans, they work best for someone who plans on staying in their home for over 5 years or an extended period.
The lender cannot take back the house until the borrower dies, or moves away from the property for 12 months or longer.
Question 2 for Jo Garner: What is the difference between a homeowner getting a Home Equity Line of Credit and getting a reverse mortgage?
Jo answers : “First of all, before anyone is allowed to apply for a reverse mortgage, they must complete a consultation with an FHA-approved Housing Counselor to make sure the reverse mortgage is right for you–since its not the right choice for everyone.
Jo answers: Secondly, on a Home Equity Line of Credit the homeowner has to make monthly payments to the bank to pay off the loan. If they miss payments, the bank can foreclose on the house. .On a reverse mortgage, since there are not payments due, the bank cannot foreclose on the home while the homeowner is living there. .
Jo answers Thirdly, on an Equity Line of Credit the homeowner has to get approval based on their credit and their income and must prove they have plenty of liquid assets available
Not so on the reverse mortgage: since the homeowner does not have to make payments, the bank does not check credit (except for bankruptcies), the homeowner does not have to prove income or show a large amount of liquid assets.”
Question 3 for Jo Garner: Give us an example of what kind of money someone could get from a reverse mortgage?
The difference in benefits vary greatly as determined by the age of the borrower, the amount of equity in the home and the interest rate at the time of the loan. Generally the older you are and the more your home is worth, the more cash you can get. For instance a few months ago a 62-year old with a %150,000 house could receive nearly
$80,000 in a reverse mortgage lump sum. A 75-year old could receive $96,719 for the same house. Of course you can choose to get a monthly income instead of the lump sum. There are a number of variations on the methods to receive your money.
Questions for Ken Bowley:
1. How does long term care insurance help ?
Questions for Anthony Bradley:
1. How does a trust help the homeowner
Jo Garner, Mortgage Officer Evolve Bank and Trust (901) 482 0354 jogarner@mindspring.com
Ken Bowley, Erin McDonald Allstate Insurance Agency (901) 372-3500
Anthony Bradley, Attorney with the Bradley Law Firm (901) 682 2030
Protecting your home and other assets is a priority in uncertain times. Jo Garner, Ken Bowley and Anthony Bradley offer financial solutions for getting your game plan in place for keeping your family and home safe for later years. Get real estate financing and insurance deals and ideas.
“REVERSE MORTGAGES, TRUSTS & LONG TERM CARE INSURANCE: FINANCIAL TOOLS FROM THE SENIOR TOOLBOX”
Podcast for the 6-16-12 radio show
http://www.600wrec.com/cc-common/podcast/single_page.html?podcast=jogarner
Good morning Memphis! We’ve got some good news for you today on the Real Estate Mortgage Shoppe program. Grab your cup of coffee, pull up a chair and join me, Jo Garner, mortgage officer with Evolve Bank and Trust for some conversation about your home and your pocket book. We have two local experts with us today. Ken Bowley, with Erin McDonald Allstate Insurance Agency and Anthony Bradley, attorney with the Bradley Law Firm. Today’s topic? “Reverse Mortgages, Trusts and Long Term Care Insurance: Financial Tools from the Senior Toolbox”
Ken Bowley, glad to have you around the coffee table again today. Some of our listeners may not have met you last time you were here. Tell us a little about yourself and what you do.
Anthony Bradley, you are a regular on our local television stations and at Talk Shoppe . Tell our listeners a little about you and what you do?
We have some great news this week in the real estate and mortgage world.
Rates are staying low in large part because of the instability in the European markets. Investors want to play it safe and invest in our treasury bills -which help keep our mortgage rates low.
This week The benchmark 30-year fixed-rate mortgage fell to 3.91 percent from 3.92 percent last week. One year ago, the mortgage index stood at 4.66 percent; four weeks ago, it came in at 3.97 percent.
The fixed rate hasn’t moved up since early April, when it was 4.25 percent. The benchmark 15-year fixed-rate mortgage rose to 3.17 percent from 3.16 percent the previous week, while the benchmark 5/1 adjustable-rate mortgage rose to 3 percent from 2.99 percent.
We are seeing more purchase contracts come across the desk which helps the economy as a whole. We are getting grant money and down payment assistance for first time homebuyers and also helping homebuyers who have a house to sell but want to close now on a new bargain dream house. Call me and I can walk you through how to get that deal for yourself.
The applications continue to flood in for homeowners refinancing their homes under the government HARP program that does not require an appraisal. The HARP program (Home Affordable Refinance Program) has turned out to be a great success, especially for homeowners who owe more on their home than the current market value. We are saving homeowners several hundred dollars per month in some cases with minimal out of pocket expense.
Word to the wise: If you have checked with a mortgage company and they have turned you down for the HARP program, you may want to try somewhere else. Since so many mortgage companies have their own set of rules and regulations in addition to the standard Fannie Mae and Freddie Mac HARP rules, ask these questions when you are applying and you will find out really fast if you need to go elsewhere.
First question: Does your bank have restrictions on loan -to-value? If they do, you probably want to deal with a company that does not have a limit.
Second question: Do you have a minimum credit score? Most lenders will accept a credit score of 640 or below as a minimum, but some have their own strict minimum allowed score of 720 or higher. That restriction may be too tight.
Evolve Bank and Trust, where I am, has a minimum score of 640 and no limit on loan-to-value. We can use HARP money on your primary residence, 2nd home and your investment properties.
My very capable assistant, Susan Belew and I would like to talk with you or someone you refer to us. We have a few questions we can ask to do a full evaluation on the financing options available to you. Of course we want to go with the option that saves you the most money and helps you achieve your goals. The best number to reach us personally (not on the air) is (901) 482 0354. That number again is (901) 482 0354. You can also catch our past podcasts and contact info on my blog www.mortgageloansblog.com
Today our topic is “Reverse Mortgages, Trusts and Long Term Care Insurance: Financial Tools from the Senior Toolbox.” If you have something helpful to share about this topic or if you want to talk about your credit, or finding down payment assistance, or getting a renovation and repair mortgage, purchasing a home, refinancing one, and the list goes on and on….call us and let’s talk at (901) 535-WREC.
Let’s dig into the tool box and see what solutions we can find for some of our listeners.
Ken Bowley, from Erin Mcdonald Allstate Insurance Agency, you are our expert today when it comes to long term care insurance and how to get the best from it. What tools do you want to demonstrate for us today?
Anthony Bradley, of the Bradley Law Firm, you are well-known for being an expert when it comes to dealing with revocable and irrevocable trusts. What tools would you like to show us today that can give us some solutions to our challenges?
Commercial Break
2nd segment we try and focus on Anthony and Ken’s topics Here is where we can ask designated questions to Anthony and Ken
Commercial Break on the half hour
3rd Segment we can try and get in some points from Jo Garner on reverse mortgages as a tool . If possible let’s try and integrate that tool with some of Anthony’s and Ken’s
Commercial Break
Last segment is very short. Our closing music starts at 9:57am.
In the last segment we do the Real Estate Tip of the Week.
Questions for Jo Garner: One of the financial tools in our Senior Toolbox today is the reverse mortgage. When would a homeowner want to pull this tool out and use it?
First of all, the reverse mortgage program is NOT for everyone. In fact, before applying for a reverse mortgage, the homeowner is required to complete an educational/counseling session with a HUD approved financial advisor .
A reverse mortgage is a loan designed to allow seniors to draw on the equity in their homes either by a lump sum payment or by monthly installments paid TO the homeowner thus providing income even after retirement. The reason this type of mortgage is called a “reverse mortgage” is because the money goes directly to the home owner instead of into paying for the home. Eventually the money paid to the homeowner is repaid with interest, however it generally doesn’t become due until the homeowner leaves the home due to death, move, etc.
The biggest winner on the reverse mortgage is a homeowner 62 years old or older who is cash poor but house rich with lots of equity in the house. The closing costs are about double the amount of a traditional mortgage and the cost are backed out of the lump sum or payments given to the homeowner by the reverse mortgage company. Because of the higher cost on these loans, they work best for someone who plans on staying in their home for over 5 years or an extended period.
The lender cannot take back the house until the borrower dies, or moves away from the property for 12 months or longer.
Question 2 for Jo Garner: What is the difference between a homeowner getting a Home Equity Line of Credit and getting a reverse mortgage?
Jo answers : “First of all, before anyone is allowed to apply for a reverse mortgage, they must complete a consultation with an FHA-approved Housing Counselor to make sure the reverse mortgage is right for you–since its not the right choice for everyone.
Jo answers: Secondly, on a Home Equity Line of Credit the homeowner has to make monthly payments to the bank to pay off the loan. If they miss payments, the bank can foreclose on the house. .On a reverse mortgage, since there are not payments due, the bank cannot foreclose on the home while the homeowner is living there. .
Jo answers Thirdly, on an Equity Line of Credit the homeowner has to get approval based on their credit and their income and must prove they have plenty of liquid assets available
Not so on the reverse mortgage: since the homeowner does not have to make payments, the bank does not check credit (except for bankruptcies), the homeowner does not have to prove income or show a large amount of liquid assets.”
Question 3 for Jo Garner: Give us an example of what kind of money someone could get from a reverse mortgage?
The difference in benefits vary greatly as determined by the age of the borrower, the amount of equity in the home and the interest rate at the time of the loan. Generally the older you are and the more your home is worth, the more cash you can get. For instance a few months ago a 62-year old with a %150,000 house could receive nearly
$80,000 in a reverse mortgage lump sum. A 75-year old could receive $96,719 for the same house. Of course you can choose to get a monthly income instead of the lump sum. There are a number of variations on the methods to receive your money.
Questions for Ken Bowley:
1. How does long term care insurance help ?
Questions for Anthony Bradley:
1. How does a trust help the homeowner
Jo Garner, Mortgage Officer Evolve Bank and Trust (901) 482 0354 jogarner@mindspring.com
Ken Bowley, Erin McDonald Allstate Insurance Agency (901) 372-3500
Anthony Bradley, Attorney with the Bradley Law Firm (901) 682 2030
Protecting your home and other assets is a priority in uncertain times. Jo Garner, Ken Bowley and Anthony Bradley offer financial solutions for getting your game plan in place for keeping your family and home safe for later years. Get real estate financing and insurance deals and ideas.