A reverse mortgage allows age 62 (in some cases 55) and older senior homeowners with considerable equity to borrow against the value of their home and receive funds as a lump sum, fixed monthly payment or a line of credit, while still living in the home.
Included below are a few additional details about reverse mortgages. If you have any questions or would like more information, I am ready to assist you.
Allows accessible money for home maintenance and home improvements.
Allows the borrower to have no mortgage payments.
Allows the borrower to have a Home Equity Line of Credit they can draw on for emergencies, vacations, etc.
Allows the borrower to receive a monthly payment from the reverse mortgage if they choose to.
Allows you to maintain ownership of your home, provided terms of the loan are complied with and your property taxes and homeowners’ insurance are paid as required.
Allows you to postpone using other sources of retirement income.
By taking advantage of a “Temporary Buydown Mortgage,” you can move forward with purchasing that new home now!
What is a Temporary Buydown Mortgage?
The temporary buydown mortgage is a payment feature that allows a temporary one-two or three-year rate reduction. As interest rates have increased, the temporary buydown mortgage is becoming a popular option for homebuyers.
There are different lengths of temporary buydown mortgage available ranging from one to three years.
The temporary buydown mortgage lowers the buyer’s monthly payment for the first one, two or three years; dependent on which temporary buydown mortgage is right for you.
The temporary buydown mortgage is available on Conventional,
FHA, VA, USDA and some Jumbo loans.
The temporary buydown mortgage may be used on purchase loans only and is a fixed rate loan.
When using a buydown mortgage, the seller or builder pay the buydown costs at closing.
Funds paid at closing buy the seller or builder are placed in a separate escrow account and then applied to the buyer’s payment each month for the time period of the temporary buydown.
Temporary buydown funds may not be used to pay for late mortgage payments.
No prepayment penalty.
If a buyer refinances or sells the home prior to the end of the buydown term, any funds left in the temporary buydown escrow account will be credited to the principal payoff of the mortgage loan.
For additional information or to see if this is a good option for you or a prospective client, please contact Kathleen today. 916-722-0395, kathleen@wcmtg.com
*This month’s blog is being shared courtesy of Jeff Sipes and Blue Water Credit.
The number of credit cards is skyrocketing across the U.S. these days, as consumers turn to debt to ease the pain of inflation and credit card companies look to cash in. In fact, in Q2 of 2022 alone, there were almost as many brand new credit cards issued as people over 18 in America!
With each of those new cards, the bank, credit scores, interest rate, reward points or miles, and how we use them will differ, but one thing is consistent: the credit card companies know what makes you tick, and they prey on that to entice you to open more cards and rack up more debt.
Today, let’s cover just 5 of the many tricks and tactics credit cards use to drag you in.
Sending out preapproved offers.
Credit card companies routinely mail out millions of preapproved offers every month, and these days it’s even easier because they can email them out to you as well.
But what does “preapproved” really mean? In fact, that terminology basically just means that a bank, lender, or credit card company purchasd your data (usually from the credit bureaus!) based on specific criteria. They may request everyone in the Sacramento area with a credit score over 700 and no bankruptcies, for instance (although that’s simplified).
If you match those criteria, the creditor considers you “preapproved” and can send out offers with that verbiage. But you STILL have to apply for a new account, and they still have to approve you. They can actually deny you (or just change terms and limits) once you respond to their preapproved offer!
Reward points and cash back aren’t very rewarding.
Everyone loves to boast about how many reward points or cash back they’ve accrued with their favorite credit card, but do they really add up in your favor? According to analysts, one credit card point only has a real-world value of around one penny. Not so enticing anymore, huh?
With most cards, they’ll assign one point for every dollar you charge, so you’re getting one cent back.
Of course, they know that you’ll end up paying far more than one cent in interest for that same dollar you charge, not to mention that cards with rewards points or cash back often have high annual fees that counteract any financial benefit.
Sneaky!
Your fixed rate may not really be set in stone.
Credit card holders are largely in the dark when it comes to what their actual interest rate is. Of course, there are plenty of introductory offers and fixed rates promised when you sign up, but that’s misleading.
A credit card fixed rate isn’t “locked in” like the rate on a 30-year mortgage, for instance, but it just means it’s not directly tied to a benchmark (as is the case with variable rates). But your credit card’s fixed rate CAN change, and it’s basically just at the credit card company’s discretion, as long as it’s outside of the introductory period.
That’s right, deep in the fine print is a clause that allows your card to bump up your APR just about any time they want, as long as they send you formal notice.
Do you really think you’re paying 0% on 0% offers?
Credit card companies and lenders flood us with offers for 0% financing, everywhere from in our mail to at the mall to online.
But do you think that an offer for 0% financing really means you end up paying 0%?! Of course not!
The critical element of 0% offers is that there’s typically a key deadline by which you need to pay it all back, or else interest payments do kick in, including for past months. Of course, they don’t inform you of that deadline or those terms (other than buried deep in the fine print), and they certainly won’t remind you.
Add it all up, and 0% financing usually means just deferred interest payments – and when they do kick in, they’re a whole lot higher than typical financing offers, often as high as 25%!
Point-of-purchase offers are traps.
This is all-too-familiar; you’re in line at _______ (insert name of your favorite store here) with a sizable purchase stacked up in your cart.
The friendly and smiling person working the cash register asks you, “Would you like to apply for a ________ (insert name of your favorite store here again!) card today and get a 10% discount?”
It sounds good – and the savings could be significant on your purchase that day.
Retailers and financing companies understand the psychology that will entice you to say yes. They want to cultivate the pressure you feel to make a quick decision, limit the time you have to think about it, and have the discount dangled in front of you only when your final bill is being tallied.
Notice how they offer that at the cash register when you’re checking out – not when you’re first walking into the store!
And once you do say yes and sign up, that 10% discount one time will probably cost you exponentially more in finance charges and even fees down the road.
*** These are just a few of the seemingly endless tricks and tactics the credit card companies employ against you every single day!
Thank you, to Norm Schriever, Jeff Sipes and Blue Water Credit for sharing this valuable information.
Buying a home is one of the biggest and important purchases you will make. The homebuying process from making an offer on a home to having the keys in your hands can sometimes be stressful and overwhelming.
Familiarizing yourself with the terms below can give you a better understanding of what to expect throughout the home buying process and may help eliminate the confusion and stress.
Mortgage
A mortgage is a loan for residential real estate with 1 to 4 units the borrowers apply for and repay monthly over a set number of years.
Pre-approval
Having a pre-approval completed by your lender will provide leverage and create a competitive advantage when you submit an offer on a home you want to purchase.
Income
Income documented by the last two years of W-2s, pay stubs, and if you are self-employed your last two federal tax returns.
Credit score
Having a credit score over 700 makes it easier to get approved. A lower score may also result in a higher interest rate.
Debt-to-income ratio
(DTI) Calculation of total gross monthly debts or payments divided by total gross monthly income.
Earnest Money
Earnest Money Deposit (EMD) is money you put in escrow when the seller accepts your offer/contract. The EMD shows good faith, and you intend to obtain a mortgage to buy the property. If you have signed off on all contingencies and decide to cancel the contract, the seller has the right to keep your deposit.
Closing Costs
Closing costs are fees paid at the close of a real estate transaction. Closing costs are 1% to 2% of the purchase price, depending on which state you live in and how your offer is written and accepted.
Private Mortgage Insurance (PMI)
If your down payment is less than 20% on a Conventional or FHA loan of the purchase price, you will have Private Mortgage Insurance.
Down payment
The amount of money paid upfront in escrow when the loan closes. In general, the down payment is 3% to 20% of the sales price or value of the property, which ever amount is less.
Budget
Your mortgage should not be more than 36% of your gross income each month. Total debt including your PITI (Principle, Interest, Taxes, and Insurance) in most cases should not be more than 45% of your gross income.
Escrow
A non-interested third-party that receives instructions and monies from both sides of the sale.
Closing
Closing is the final phase of the mortgage process where the loan is funded and home transfers title from the seller to the buyer.
Both your mortgage lender and your real estate agent will be able to further assist you if you have additional questions about the process of becoming a first-time homeowner.
With changes in the economy and real estate market over the past year, some prospective home-buyers have asked themselves and the professionals, if now is the right time to purchase a new home. You’ve been saving, bumped up your credit score, paid down outstanding debts, etc. but is this the right time to buy?
There is no way to predict when the most opportune time is to make that big commitment and become a home-owner.
However, based on local market changes, the key points included below are some good indicators that home-ownership may be in your near future.
More Inventory: Many areas have recently seen an increase in available homes entering the real estate market. This gives buyers more options to choose from. Also, consider broadening your “neighborhood parameters” when you begin house hunting.
Neutral Market: As we make our way through 2022 and various changes to the market, recent trends show that we are moving away from what was a “seller’s market” over the past couple years. This is good news for those wanting to make that dream home purchase.
Down Payment Assistance: Currently there are a variety of assistance programs available that are geared towards helping prospective buyers become home-owners. Your Mortgage Lender can determine what options are available to you.
Sellers Paying Some Fees: When making that dream home purchase, you will find closing costs and other fees attached to your purchase price. These costs vary and some are based on the sale price of your home. Some sellers are now willing to pay some or even all of the buyer’s closing costs. Keep this in mind and know that it never hurts to ask.
If you have been pondering a new purchase, the first step is to contact your Mortgage Lender. Ask about any and all down payment assistance programs. Your lender will help determine what your best options are, how much home you can realistically afford and will get your pre-qualification in order so that you can contact a real estate agent and begin shopping for your home.
Over the past few years, DIY home improvements have steadily increased, with a huge jump from 2019 to present. With sales in the home improvement industry continuing to grow as they have, the home improvement market is expected to peak to a new height of over $400 billion by the end of 2022.
Why has home improvement become so popular?
Cost
The over-all cost of doing a home remodel is far less than purchasing a new home. Home renovations can be done on a room-to-room basis, moving at your own pace. This means your budget can flow with what your needs are as you move through each project.
Personal Touch
Renovating your existing home gives you the option to meet your personal expectations and wants. It can be more cost effective for you to do renovations and upgrades in the areas you feel best fit your families needs as compared to buying a new home that may have a few features you love but not all.
Increasing Space
If your family has grown in size or you are feeling overcrowded, a room expansion or the addition of a bedroom or great room may be the best option to give your family room to spread out.
Energy Efficiency
Exterior home improvements can save you money on your monthly energy costs.
Replacing windows, doors and siding can better insulate your home. Coatings on replacement windows can also cut down on the amount of solar heat coming through windows into your home.
Fixing A Safety Issue
Some home renovations are a necessity that cannot be put off. A leaking roof, outdated electrical or plumbing are problems that need to be dealt with in a timely manner to keep you and your family safe and to avoid catastrophic damage or loss.
Comfort and Wellness Design
The home improvement market has been heavily influenced by consumer preferences aligned with a wellness environment. Homeowners today are interested in features that match their lifestyle habits and create a calm space. Hot tubs, home gym rooms, zen gardens, bamboo and cork flooring and more have all become increasingly popular home renovation projects.
Updating the home’s style, improving the value of the home and preparing a home for sale are also reasons why the home improvement trend continues to gain popularity.
With today’s rates, many homeowners are currently taking advantage of cash-out refinance options to help fund their home renovation projects. If you have questions about what your options may be, please contact me so we can explore what will work best for you.
With the arrival of the Pandemic in early 2020, the amount of time most people spend at home drastically changed. Many of us found ourselves spending more time in our homes then we ever had before. Our once busy, on the go lifestyles changed to working from home, exercising at home, cooking and eating more meals at home and finding creative ways of entertaining ourselves and our children.
While adapting to a different daily routine, some of us discovered that we enjoy being at home more.
Many people have now opted to continue working from home and are enjoying the short and stress free morning commute down the hallway. Over the past two years we have placed more focus on quality time at home with family and friends, preparing healthy meals, taking on DIY projects, growing our own food and more.
With these changes, priorities have shifted in what home-buyers want when looking for a new home.
The following are the top ten features that many prospective home-buyers are looking for in 2022.
More Space. The average sought after size of a new home has risen to just over 2,500 square feet. Along with square footage, the amount of four-bedroom/three-bathroom homes has increased.
A Home Office. Not just a corner of a room for your laptop but an actual room, separate from other members of the family, dedicated to where you are able to work distraction free.
A Laundry Room. Nearly half of all home buyers stated that a laundry room is essential in 2022. Almost three quarters of those say they would like their laundry room located on the ground floor of their home.
A Large Functional Kitchen. Potential home buyers put a lot of focus on what they want in a kitchen. A double sink and walk-in pantry were the top priority. Next on the kitchen requirement list was an island workspace, with a water filtration system coming in next.
Multi-use Garages. With many of us spending more time at home and taking on home improvement projects, we want a functional garage work space. Many people want a garage with cabinets dedicated to storage and a work space for tackling DIY projects.
Outdoor Space. Home-buyers are searching for larger backyards with ample room to have patios for entertaining, outdoor kitchen space, garden space and areas for children or pets to play.
Pools. This is an item that at one time was thought of as a luxury. Now, with many people taking to exercising at home a pool can be very beneficial. Because of the cost involved with having a pool put in, some home-owners have opted to search for a new home with an existing pool instead of taking on the expense involved with starting from scratch.
Exterior Lighting. Exterior lighting is actually the second-most sought after feature for outdoor spaces. There are a variety of different types of lighting for pathways, patios, yards and even the pool.
Guest Room. Today’s home-buyers find it important to have a comfortable space for visiting family and friends. Most who feel this is a priority are seeking a space that includes a designated room for company, including a full bath for guests.
Half Bathrooms. Having a half bath on the main floor of the home allows short term visitors the option to use the restroom toilet and sink without walking through the master suite or infringing on children’s bathroom space.
While each buyer’s wants and needs will vary, these are some of the top contenders. A few other things that prospective home-buyers may be looking for include; energy efficient lighting, ceiling fans, energy star rated windows and appliances and updated kitchens and bathrooms.
Recent research from the National Association of Realtor’s shows that more young Americans are now purchasing older homes over new build homes.
In 2011, the average age of homes sold was 18 years. Now, the average age of a previously owned home is 28 years.
Younger buyers (aged 26 to 35) are showing more interest in older homes with many purchasing “fixer-uppers”.
Here are a few reasons why:
1. Longevity
Over all, the quality of construction in older homes will surpass a newly built home. There is a reason that older homes, some being 50-100 years old are still standing and are in very good condition given their age. Homes in the past were built better, with higher-quality materials and more attention to detail. For example, supports made from solid wood from old-growth trees, walls made of plaster and lathe, and real hardwood floors were all part of the detailed craftsmanship that went into older homes.
2. Affordability
Older homes can be more affordable because they aren’t necessarily made with today’s energy-efficient materials found in new builds. In addition, older homes pre-1970 may not have been updated, which can drive down the cost. Many younger home buyers are using this to their advantage by purchasing a fixer upper and taking on upgrades themselves.
3. Established Neighborhoods
Buying a home in an established neighborhood is preferable to many buyers because it already has many of the things that most people want in their neighborhood; established schools and nearby businesses; parks and green spaces; mature shade trees and more.
4. Spacious Yards
Many buyers wish to have a large yard for their growing family, pets or to entertain family and friends. Most older homes have larger yards with established trees and shrubs as well as space for family fun, a swimming pool or a large garden.
5. More Character
Most older homes have more character than a new build. Many of these homes had great detail put into molding, flooring, tile, built-ins, banisters and other unique architectural designs. If the home has been properly maintained by previous owners you may find a gem with many or all of its original charming details.
Most people dream of having the perfect home. The home that best suits the needs of you and your family and is affordable to your budget. Many times, though, just as we grow and change, our families change and our “must haves” in what we want in a home or community change.
So how do you know when it is time to begin considering moving?
Your Family Has Changed in Size
With a changing family size, your current home may no longer fit your needs. If you are expecting a baby or bringing a senior parent in to live with you, you will find that you need more space for additional items that come with the change.
If you find yourself with an empty nest at home because your children have grown and out on their own, the two story, 5-bedroom home may be too much, and you may feel it is time to downsize into a little less house.
Your Lifestyle and Activities Are Different
For many of us, as we grow and mature, so do our priorities of what we want in a community where we live. As a younger single person, an apartment or condominium in a busy downtown area with culture and entertainment available and little to no upkeep for your living space may have been perfect. But over time you may find as you mature, the need for a home in an established neighborhood in suburbia becomes more appealing to you than the busy downtown life.
You Can Afford More Home
Many first-time homeowners purchase a home based on what their budget allows them at the time, over what their wants are. If you have reached a place where your income has increased, you are more financially secure and a larger mortgage is affordable, it may be time to look for a home that meets your list of “wants.”
To Be Closer To Your Job
Let us face it, a lengthy commute can be a strain. In today’s busy world, people are trying to eliminate spending an hour or more commuting to and from work five days a week. It may not feel like it until you realize that some of us travel upwards of five hundred hours per year, to go to work. Add in the chaos of traffic, road construction and other delays, fuel costs and wear and tear on your vehicle and it makes sense that many people have begun to relocate closer to their work location.
You Now Work from Home
Recently companies have transitioned their employees to work remotely from home. Whether your job made the move to work at home, or you have your own home-based business, you may find yourself in need of an at home office or workspace, dedicated solely to the needs of the business.
You Find Yourself Juggling To Clear The Clutter
I am sure you have heard the phrase, “bursting at the seams”! If you feel that you are constantly trying to create more storage for things you and your family use and there still never seems to be enough space, it may be time to consider looking for a bigger home that can better accommodate your family’s needs.
Chances are at some point you will see yourself and your family in one or more of these situations. When the time comes to begin exploring options, your mortgage lender will be happy to assist you with getting the process started.
For many people, the day after Thanksgiving is the beginning of the Christmas season which can be a very busy time of year. The weeks between Thanksgiving and Christmas are filled with school pageants and programs, office and neighborhood parties, family photos, family arriving from out of town and let’s not forget the shopping!
This should be a joyful, happy time with all of these fun events. But in today’s world where many of us are busy with work, family obligations, appointments, kids sports and more, the addition of parties and extra planning for events can put a strain on our already busy schedules.
Before you begin adding events to your calendar, grab a cup of coffee, and check out the ideas below! We’ve got a few tips for time saving meals, ideas for clutter-free gifts and a few Holiday events in and around the Sacramento area that you might just have time for.
Easy Meals:
Use an hour of your weekend to do some meal prep for the week. Opt for things that can be made in double batches. Casseroles, soups, lasagna, spaghetti sauce. Use one batch during the week, label and freeze the second for later in the month.
Rotisserie chicken. Need I say more? These can be used for a variety of meals. Buy two. One for the night’s dinner with easy sides and the second to shred and use later. Divide, wrap and freeze leftovers for chicken tacos, nachos, chicken and rice, chicken noodle soup and more.
Use your crock pot. Don’t forget to use a crock pot liner for easy clean up. 1 good sized tri-tip or pot roast, sprinkle a packet of dry ranch dressing mix and a packet of beef, mushroom or onion gravy mix over roast, pour 1 can of beef broth over the top and cover. Cook on low heat 6-8 hours depending on the size of the roast. Add an easy side dish for that night’s dinner and save the leftover meat for tacos, nachos, or stroganoff later in the week.
Sandwiches. Pick up a variety of deli meats, cheeses, different types of breads or sandwich rolls and let everyone create their own masterpiece.
Pizza is a given when it comes to those busy evenings when there isn’t time to prepare a meal.
Clutter-Free Gifts:
Think outside the box when it comes to gift giving this year. Gifts for experiences, classes, services, memberships and consumables are all great options.
Concert tickets
Sporting event tickets
Escape room
Train excursion gift certificate
Ax throwing session
Movie gift card
Cooking classes
Dance classes
Art or painting classes
Jewelry making class
Massage certificate
Manicure/Pedicure certificate
Membership to your local zoo
National Parks membership
Horseback riding lesson
Pottery painting session
Stamps, fancy pens and assorted greeting cards
Homemade treat basket
Mini succulents
Fruit basket
Homemade coupon for a babysitting session
Offer a home cooked meal for a senior
Upcoming Holiday Events In And Around Sacramento:
Old Sacramento Holiday Tree Lighting. Wednesday November 24th the fun begins at 5 p.m. at Front and K streets with entertainment and family-friendly festivities leading up to the free, public tree lighting ceremony at 6 p.m. Immediately after the tree lighting, watch the first 2021 performance of Theatre of Lights featuring a live dramatization of “Twas the Night Before Christmas,” on the balconies above K street, complete with a special appearance by Jack Frost.
Trans-Siberian Orchestra, Christmas Eve and Other Stories. Friday December 3rd 3 p.m. Golden 1 Center.
Winter Wonderland at Fairytale Town. Saturday December 11th 1-7 p.m.
Holiday Weekends at The Old Sugar Mill, Clarksburg. Weekends, beginning November 26th 10 a.m. – 5 p.m. Shopping, live music, outdoor wine tasting and more.
Christmas Light Promenade, Folsom Historic District. Friday, November 26th-Monday, November 29th.
Breakfast with Santa, Joe’s Crab Shack. Saturday, December 11th 8-10 a.m.
Brunch with Santa, Rusch Community Park. Sunday, December 12th 10 a.m.-1 p.m.
Downtown Roseville, Christmas Tree Lighting. Thursday December 2nd 6-8 p.m.
Elk Grove Holiday Parade of Lights. Saturday December 4th 6 p.m.
Downtown Sacramento 38th annual Santa Parade. Saturday, December 11th 10 a.m.
River Fox Train, Magical Christmas Train. *check website for dates and details.
As always, check each event online for details regarding hours, reservations, tickets and any Covid related guidelines. Don’t forget to check out info online for Christmas light displays in areas such as Downtown Sacramento Fab 40’s, Dovewood Court in Orangevale, Pebble Creek Park area of Rocklin and more!
Santa will be making the rounds beginning at 6 p.m. through the following areas in Roseville:
Tuesday 12/7 Blue Oaks/Maidu
Wednesday 12/8 Highland Park/West Park
Thursday 12/9 Main Street/Woodcreek
Tuesday 12/14 Douglas/Darling/Heritage Oaks
Wednesday 12/15 South of Cirby/Stoneridge
Thursday 12/16 Diamond Oaks/Westbrook
No matter what you do, try to focus on time spent with those you love and remember…
“Maybe Christmas” the Grinch thought, “doesn’t come from a store. Maybe Christmas, perhaps…means a little bit more.”
Sacramento Mortgage Lender 