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®
Allison and I always state the first step for a prospective home owner is to get qualified for a loan! We recommend many great lenders on our weekly radio talk show. Here are rates from friend Otto Kobler of Summit Funding. Up just a tick. But spectacular nevertheless!
Mortgage Rates for May 27, 2016
FIXED AND ARM CONVENTIONAL PROGRAMS
30 Year Fixed Conventional
15 Year Fixed Conventional
5/1 LIBOR ARM Conventional
7/1 LIBOR ARM Conventional
JUMBO PROGRAMS ($417k +)
30 Year Fixed
15 Year Fixed
5/1 LIBOR ARM
7/1 LIBOR ARM
FHA/VA FIXED PROGRAMS
30 Year FHA/VA
15 Year FHA/VA
Assumptions include: 1% origination point and 0% discount fee, 20% down payment (Conforming), 25% down payment (Jumbo), Escrows required (if not escrows, higher fees may apply), purchase transactions on primary residence, 30 day closing, debt to income ratio <=40%, full documentation of income/assets. Conforming rates based on loan amounts greater than $200,000. Minimum Fico 740 Conventional – 640 FHA/VA. Other Programs, Loan Amounts, Credit Score and Down Payments are available. Call for details!
Changes at the PRMD (Sonoma County Permit Department),
Changes to the Vacation Rental Ordinance,
And, what about those Un-permitted repairs and alterations when you go to sell your house! These topics and more will be discussed with Real Estate Hour favorite, Tom Havstad.
Tune in..have a little fun…and, learn a lot.
Tom Havstad; Long time local Sonoma County Permit Consultant and property owner advocate. Tom Brings a wealth of knowledge to the Real Estate transaction, and to homeowners just trying to sort things out.
Permit Consulting Services for Sonoma Marin and Napa – Permit Consulting Services offers professional assistance at your building department. We know the process and we will advocate for you. Our expertise comes from decades of experience in all phases of plan and permit processing.
You may need help with building or zoning permits, or you may just need to understand what permits were taken out for work done in the past. If you need plans drawn in order to pull a permit, we can do those for you also. We’ll handle the whole process, start to finish, or we’ll coach you through it. And you can believe this, it’s not getting any simpler. You’ll save time and money by getting a professional on your side.
We are delighted to have on old friend of the show Mr. Pete Phillippe in studio this Sunday for Mother’s Day. Pete and I go back many years and no finer lender will you meet. We’ll be talking up interest rates and see what the folks over at US Bank have in the way of interesting products. Email Pete for all your lender questions.
Here are Sonoma County April Sales information. Big take-aways? Lack of inventory but increasing, Median home price up “only” 6% over last year. 1.5 Month’s Supply of Inventory (4-6 months is considered “normal”.
Average Days on the market is a remarkable 42 days. Note how this number has been dropping. Blame low inventory and big Buyer demand due to historically LOW interest rates in the upper 3% range.
Homes for sale by month is down -10% over last year–c’mon–let’s get those homes on the market!
New properties coming to the market is down slightly.
Indicator of future activity is the “Under Contract” properties down -5% over last year. Hmmmm?
Sold Properties by month is down -13%. This with historically low rates? Price wall happening?
Median Home price shows dramatic slowing of higher price activity.
For or Against Rent Control? Here are some points to consider and express to the City of Santa Rosa Council meeting May 3rd—Public Meeting at City Hall.
We are please to have Daniel Sanchez, Government Affairs Director, of the NorthBay Association of Realtors to talk about these timely issues before the City of Santa Rosa takes action on May 3rd at the Council Meeting.
Just Cause:—What is it? Under just cause eviction, a tenant can only be evicted if the landlord can prove that the tenant is violating the lease, breaking the law or if the landlord must move themselves or a family member into the unit.
Any type of rental can be eligible for just cause, including single family homes.
Just cause eviction ordinances would require rental owners to prove “cause” in court, or in some cases before a political body, every time they need to remove a problem resident, such as a drug dealer, or violent criminal.
Proving cause in court or by going before a board or commission is hard to do and unfair. The legal process is costly and time consuming. Rental property owners would have to depose and subpoena other residents to testify.
Because removing a problem tenant requires going to court, these ordinances tend to clog the court system.
Santa Rosa should focus on educating renters on their protections under state law, instructing owners on their obligations, and enforcing the laws we have.
Santa Rosa should provide a forum for owners and residents to resolve disputes in a neutral setting — not in a court, not in the political setting of an eviction board, and certainly not with a host of new laws and regulations.
Below is a graph with some very interesting stats which give me pause and commentary. This is a look going back 10 years to the wild and crazy pre-“crash” days of yore. The first thing which amazes me is the amount of homes for sale vs. today. 8,230 listing 3rd qtr of ’07 vs. this past quarter’s measly 1393.
The MSI or Month’s Supply of Inventory, is another indication of a fast, tight market. From 11.7 months supply (big Buyer’s market), 1st qtr of ’08 to 1.8 months supply 1st qtr of this year. New listings per quarter? Past quarter is the lowest in 11 years. Yeah, where are all those listing!?
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