So when the world economy shudders and lurches on the news of “the un-thinkable” –Brittian leaving the EU– the smart money runs for the relative safety of “bonds”. Bad news=great interest rates! This is getting seriously low. Look at these absolutely delicious rates!
66% of May real estate sales fell between $400,000 to $749,000 here in the “Wine Country” of Sonoma County, California. Many in the nation might think our prices outrageous but here in the super heated “Tech-centered” Bay Area we are considered the “bargain basement”. Our “Median” SOLD home price is $580,000. However, the “Active” or “Showable” listings tell a different story. Whereas a “median” home price indicates half the market above and half below when it comes to “Active” listings its another story altogether. We have 818 total “Active” or “Showable” listings now available county-wide. If we use $580,000 as a median home price with our “Active” inventory we see 27% of the available listings are BELOW $580,000 and 73% above. The county-wide Median “Active” list price is $815,000.
If you wish to find “Active” properties below the “Median SOLD Price” only 4 areas meet that criteria: Russian River–$449,000 with 59 showable listings. The SW area of Santa Rosa comes in at $469,000 with only 27 showable listings, followed by NW Santa Rosa, $515,000 with 46 showable listings and the Cotati/Rohnert Park with $537,000 median home price of actives but only 18 showable homes.
It really takes off from there. The top two median “Active” home prices? Sonoma at $1,297,000 with 125 showable listings and Healdsburg, $1,411,500 with 76 showable listings. Overall, of the 818 total “Active” listings 308 are OVER $1,000,000.
If you are 62 or older. you can use a Reverse Mortgage to make a home purchase, and have no payments!! Today on the show, Reverse Mortgabe specialist, Jill Gromm of Alliance Reverse Mortgage, joins us. Tune in to the Real Estate Hour today for more information om this great option for our seniors community.
Plus more information about the traditional Reverse Mortgage refi which allows Seniors to age in place. This is good info for all us aging Baby Boomers, and our families.
The Real Estate Hour airs Sundays 9-10AM, PST live on KSRO 1350AM, 103.5FM and streaming live (and later podcast) at www.KSRO.com. Questions, call in numbers 707-636-1350 during the show or 707-799-3617 anytime.
Purchase a Home with a Reverse Mortgage
A HECM for Purchase is a Home Equity Conversion Mortgage that allows homeowners to purchase a new principal residence and obtain a Reverse Mortgage in a single transaction. As with a traditional Reverse Mortgage, all homeowners must be 62 years or older to qualify. (Spouse may be under 62)
The Reverse for Purchase enables senior homeowners to relocate to other geographical areas to be closer to family members, right-size home or land or maybe move closer to medical facilities.
What is a Reverse Mortgage
A Reverse Mortgage, also called a Home Equity Conversion Mortgage (HECM), is a loan that uses your home as collateral, but instead of making payments to a lender, the lender pays you. As long as you live in the home and comply with loan terms including payment of taxes and insurance, you will never have to make a mortgage payment, in other words you will have no personal liability for the payment of the debt. Upon the sale or transfer of ownership of the property the loan will then be repaid.
A huge benefit is that your cash is distributed to suit your needs and lifestyle. The lender pays out the loan in three ways: lump sum, monthly payouts, or line of credit. As long as you have money to access, you can change your mind on how you take the money at any time. This allows the homeowner to be flexible with the money.
Other benefits include:
The funds loaned to you are tax-free (consult your tax advisor for your specific situation)
Your loan does not affect your Social Security or Medicare benefits
You and your heirs will keep any remaining equity
You can never owe more than the value of your home
There are no application fees
Your piece of mind is invaluable. This loan will provide you the relief you have been looking for, remember it is a loan secured by a lien on your home
You may continue to own your home in your name or in your trust
Increase cash flow by eliminating monthly mortgage payments
How much can I borrow?
The amount of money the borrower can receive is determined by the age of the youngest borrower, interest rates, appraised value, sale price and the maximum lending limit. It will be specific to your situation. We offer a no obligation assessment. Contact us to discuss.
What types of homes are eligible to be collateral?
Most single-family homes, two-to-four unit owner-occupied dwellings and approved condominiums and manufactured homes are eligible for a reverse mortgage loan. The home must meet FHA minimum property standards.
Am I eligible to take out a Reverse Mortgage?
To be eligible the FHA requires all borrowers on title to be 62 years or older. Borrowers must also meet financial eligibility criteria as established by HUD. If there is an existing mortgage on the home, it must be paid off with the proceeds from the reverse mortgage loan.
What happens if I want my home to be a part of my inheritance?
When the reverse mortgage loan does become due, the borrower’s heirs and/or estate may choose to repay the reverse mortgage loan and keep the home. Or, they can put the home up for sale in order to repay the loan. If the home sells for more than the balance of the reverse mortgage loan, the remaining home equity passes to the heirs.
If the home sells for less than the owed balance, the estate is not required to pay more than the value of the home at the time the loan is repaid.
A reverse mortgage loan is “non-recourse”, meaning that if you sell the home to repay the loan, you or your heirs will never owe more than the loan balance or the value of the property, whichever is less; and no assets other than the home must be used to repay the debt.
What monthly payments will I have?
You will not have mortgage loan payments, but still need to continue paying property taxes, insurance and HOA dues if any while maintaining the home according to FHA guidelines.
What can I use the money from the Reverse Mortgage loan for?
Reverse mortgage loans are commonly used to pay for home renovations, medical and daily living expenses. Homeowners who have an existing mortgage must use the reverse mortgage loan to pay off their existing mortgage. Ultimately, you can usually use it for anything you need.
Toni Espositi of Old Republic Exchange Company (OREXCO) joins us on the Real Estate Hour Sunday June 5th 9-10AM pst., 1350AM, 103.5FM, and streaming live with Podcast immediately following the show at KSRO.com.
Regional Sales Office – California ‒ Northern
& Pacific Northwest – Ms. Toni Esposti, CES®
We are very pleased to have on the show once again Toni Esposti, long time facilatator for exchanging real estate property via IRS code 1031. This video was done on her last broadcast. I run it as the code for IRS 1031 doesn’t change all that much. The concepts are simple–deferring your taxes on the sale of an investment property as you use equity to build wealth. Eventually you will pay the IRS but hopefully at much cheaper dollars. Using “Deferred Exchanges” and other scenarios, Toni will explain the mechanics of all. Stay tuned as the steps needed to complete a successfuly IRS 1031 Exchange are implicit in an Exchange.
Listen to Mike and Allison on "The Real Estate Hour", Sundays, 9 to 10am PST, KSRO, 1350AM or 103.5 FM and www.KSRO.com