Reverse Mortgage Information Center

Are you looking for a reverse mortgage in Grants Pass, Oregon? Why would someone want to retire to Southern Oregon? This question has so many answers that I hardly know where to begin. I guess we can just start listing the reasons and let them fall where they may.

Grants Pass, Oregon was named one of the top 5 places to retire by Time Magazine. With beautiful mountains and two rivers, an active retiree can find many things to do. There is boating, snow skiing, or just taking a scenic drive.

If you are up for a drive, the Pacific Ocean is only about an hour and a half away. If you are a little less adventurous, the extra monthly income from your reverse mortgage can go towards shopping our many local shops. You might even be able to visit the grandkids a little more often.

You can now buy a home with a reverse mortgage in Grants Pass, the market has taken a bit of a hit and there are deals to be made. You can get a great deal on a home and put down as little as 25%, depending on your age. The great news is, that once you buy the home, you will never have a house payment again. Use our FREE reverse mortgage calculator to see what you qualify for.

A reverse mortgage will allow you to live a more fulfilling retirement by freeing up some cash that is locked up in the equity of your home. You will be guaranteed a home for the rest of your life, without payments, as long as you live there as your primary residence. So if you are 62 or older, and you own a home, you owe it to yourself to see what your eligibility is.

Want to get more information on reverse mortgages and how they work? Follow any of the links in this article and you will get a great education, helping you make an informed decision. You can contact me directly at (541) 471-1900. Remember to ask for David.

What if you want to do a loan on your home, but you know the home needs repairs to qualify?

Fixing the deficiencies on your property is normally required on traditional loans. Reverse mortgages are unique in the way they allow you to do the loan first and then use that money for the repairs. So you can cash in some equity on your home to do the repairs.

Let’s look at some very common scenarios: 1. You have a deck that has had indoor outdoor carpet on it (you know, the green carpet that looks like grass), and the boards under it have dry rot. 2. Or maybe the southern exposed side of the home has very little, if any paint on it. 3. Sometimes, a tub or toilet area has a squishy floor indicating dry rot.

The required repairs for these problems can be completed after the loan is closed. In fact, any repairs that do not involve safety or health concerns can be done after you loan closes. Your property not having adequate water is an example of a repair that can’t wait, but roofing and dry rot repairs are common and should not be a problem.

How does the lender handle these repairs to make sure they get done? I am glad you asked. You will have to get a contractor’s bid for the repairs and then add 50% to that bid. The extra 50% is to cover any miscalculations to make sure that there is enough money to cover the costs and that you don’t run short. That amount of money is held in escrow, commonly called an “escrow hold back”. Once the repairs are completed, the lender will pay the contractor and refund the remaining money to you.

What if you want to do the repairs yourself? You can. You will still need to have the contractor bids though, and the escrow hold back is still required. The lender is looking for a professional estimate of what the repairs will cost.

Let’s summarize what you just learned: The proceeds of your loan can be used to do the repairs, making a reverse mortgage a unique loan. The escrow holdback will be required even if you choose to do the repairs yourself.

One of the first steps in knowing what you can do, is knowing how much you qualify for. Use our free reverse mortgage calculator to quickly estimate how much money is available to you. There is also plenty of reverse mortgage information that is helpful in becoming, educated before you make your decision.

Redwood Financial Services wants to make sure you have all the facts, so you can make an informed and educated decision. The five most common questions are listed below so you can start understanding the reverse mortgage loan.

1. Can I do a reverse mortgage if I owe nothing on my home? This may sound obvious, but absolutely. This allows for more available cash to take care of any non mortgage obligations you may have.

In the event your home is not paid off, you still could qualify for a reverse mortgage. Your mortgage will have to be paid off first (with the reverse mortgage) then any remaining proceeds can be taken as a line of credit, monthly income, or a lump sum.

2. Can I do a reverse loan if I am behind on my taxes? This is a great reason to use a reverse mortgage. It will allow you to get caught up on any past due bills and get those creditors off your back. You could consider deferring your property taxes if you live in Oregon, after the loan closes.

3. Do I have to give up the title to my home? You will use your home as collateral for the new loan. You do not give up your home. You retain all the rights to refinance or sell, and the remaining equity is always yours or your heirs’.

4. Do reverse mortgages allow me to purchase a home? In January of 2009, there was a program introduced to allow a purchase of a home with a reverse mortgage.

5. What if I use up all my equity? When considering property appreciation and the low rates of a reverse mortgage, it takes quite a while to “use up” your equity. On an average it will take 20-30 years to go through it. In the event you actually use up all the equity in your home, you will never be forced to move. You’re protected with a place to live for the rest of your life.

Stop by our website if you would like to see more frequently asked questions and answers about reverse mortgages. You will find a large amount of educational information for free. Get informed before you make your decision.

Your mortgage is likely to be the largest loan you ever take out. At 30 years it will also be the longest loan you ever take out. When you consider those 2 points then it makes sense to take some time to learn at least the basics of the process that you will go through to get the loan that allows you to buy the house of your dreams.

A mortgage is the name given to the loans used to buy real estate, whether it is a single family home, a duplex or even a piece of land you would still be getting a mortgage. The mortgage uses the property as security, so if you stop paying the bank or mortgage lender they can take over ownership of your house or property against which you borrowed. This is one of the reasons why you should not buy a house that is more expensive than you can really afford.

Buyers generally have a decision between an FHA or conventional loan unless they are a military veteran in which case they may qualify for a VA loan. VA loans are the only 100% loans available today. FHA loans usually involve a small down payment while conventional ones are the toughest to qualify for if you have any credit issues.

Cash is king, thsi may seem a strange comment to make when you are looking to borrow money to buy a house, presumeably because you don’t have enough cash to buy one outright. The fact is that the more cash you have to use as a deposit the better you will be, the only way to get a 100% loan currently is to get a veterans loan. If you have never been in the armed forces then this option is not open to you, so you need to have a deposit. FHA loans can require as little as 5% while traditional loans are now often requiring a 20% deposit.

Knowing your debt is very important. If you have lots of small monthly payments going out to various loans, credit cards and store cards this may damage your credit. Pay the ones you can off, especially if they have a high or variable percentage charge. Showing that you are in control of the debt you have will make it a little bit easier to get the mortgage loan you need.

If you ever think about if a reverse compounding mortgage is the best option for your retirement situation? The hone of the manyst answer is that I can’t tell you for sure but I can tell you that it is one of the many option you should investigate.http://floridahomeloanreport.com

I won’t lie to you buying a house is an expensive thing to do, there are fees to get a loan, there are closing costs, there is the time and money you spend when you are looking at houses. It sometimes seems that every single phone call is someone wanting some more money from you. It can be easy to discount the costs that are not required to get a loan, the home inspection usually falls into this section but forgoing it can be a mistake.

Your best protection against buying a home that is substandard in any way is to have it inspected by a qualified home inspector. It can be difficult as you have probably falled in love with the house and are imagining how your children will look playing in the garden. You don’t want to think that there could possibly be anything wrong with your future home, but isn’t it better to know sooner rather than later that the roof will need replacing in a year or two.

Buying a house is expensive, but the home inspection is not the thing to do without in the hope of saving a few hundred dollars. A new roof will cost you somewhere in the region of $15,000 so it is worth spending a few hundred to check that you won’t be needing a new one any time soon. No matter how nice the home owner appears it is not good enough to just trust that they will even know about any problems their house has never mind telling you about them.

Finding a home inspector that is certified is important, don’t be tempted to ask a friend who is a contractor to look over the place just so you can save a few dollars. Home inspectors are specially trained to be able to spot problems in your home that you (or your contractor buddy) would miss, most of us have no knowledge of electrical systems or plumbing beyond the turning on of lights and the flushing of the toilet.

In some states, it makes sense to also have inspections for radon, mold and termites. You also want to make sure that the roof is thoroughly inspected as is the basement. You can also ask the seller to purchase a one-year home warranty that will cover the major components in the house for one year and is renewable if the buyer chooses to do so. These are usually less than $450 and are worth their weight in gold.

Trying to work out what a reverse mortgage is exactly? There is no easy way to show you but if you are at or very near the age of retirement then it is worth looking into.

Let’s face it, there is good and bad in everything that we do. The real question is; does the good outweigh the bad? We are going to take a look at what the real story is. Are reverse mortgages good or bad? We will start with the “bad” points.

Reverse Mortgage Cons:

1. Mortgage Insurance – All FHA loans have mortgage insurance, regardless of how much equity you have available. In the case of a reverse mortgage, it is for the possibility the balance of your loan may exceed the amount your home is worth. This only applies when it is time to sell your home and is usually in the event that property values decline. Remember, even if you use up all your equity, you will never be kicked out of your home. Because of the Mortgage Insurance, you and your heirs will never owe more than your home is worth. That is what you are paying for.

2. Compound Interest – Everyone likes to earn it, no one likes to pay it. Simply defined, it is interest which is calculated not only on the initial principal but also the accumulated interest of prior periods. If you’ve ever had a savings account or investment that you rolled the earnings back into, you have likely earned it. Since you are not making payments on your loan, compound interest will add up.

3. Spending Your Kids’ Inheritance – I have heard some say that it is wrong to spend the children’s inheritance. But, I have to ask, “Whose money is it”? In my opinion, if you need the money, use it. You can leave what is left over, and that should be enough. You shouldn’t blow the money, but use enough to make life comfortable.

The Pros of a Reverse Mortgage:

1. Maintain Your Independence – What could be more embarrassing than asking your kids for financial help to cover monthly expenses? Would you like to need to move in with your kids? You can use your home’s equity to make ends meet and keep your dignity.

2. The Ability to Keep Your Home – Not having to move potentially decades of collected items and memories might be the best reason to do a reverse mortgage. Just the thought of moving makes most people cringe. By taking advantage of a reverse mortgage, you can afford to keep the home you love while affording the retirement you deserve.

3. Making Life Affordable – So many impoverished seniors have become so accustomed to being broke that they don’t even know that they are. Reverse mortgages allow you to access your equity and use it as a lifetime income stream. You might feel like you’ve won the lottery if you were able to get a few hundred dollars more every month.

4. No Mortgage Payments – There are no monthly payments, and you don’t have to pay back the loan as long as you maintain the home as your primary residence. This can really be helpful when times are tough.

Did you notice that the fees weren’t mentioned in the “cons” section? That is because fees are no longer a reason to not do a loan. There are new programs available that cut the fees of a reverse mortgage 50% or more. Usually the origination fee can be totally waived and you could get a large credit towards your mortgage insurance.

Before we summarize, let me admit something. Yes, I am a reverse mortgage loan officer, but I truly believe reverse mortgages are a great tool that can help a lot of people. I am not saying they are for everyone, but when I see anyone saying they are bad, I just cringe. Tools aren’t bad. It’s how you use them. If the equity in your home is the only money you have, what is wrong with using it to make life livable?

Now it is up to you to decide. Is this a tool that can help you or someone you know? Will your life be enhanced with a reverse mortgage? If you are still unsure and want more information, read more of our articles on our website.

David Prulhiere is the owner of Redwood Financial Services and he specializes in reverse mortgages. If you would like to read more about reverse mortgage pros and cons? You can also see other articles and blogs with additional reverse mortgage information.

1. Getting a Reverse Loan for the Purpose of a Short Term Fix.

In instances where foreclosure is imminent, or repairs are needed to maintain habitability, for example, would be reasons to use a reverse mortgage short term. But as a general rule, you should consider a reverse mortgage as a long term solution. When you consider the fees that are associated with a reverse mortgage against the need for the money, you should be able to determine if it makes sense for you with the help of a trusted loan officer.

2. A Reverse Mortgage Can Affect Your Government Benefits.

Not really because of getting a Reverse Loan, but because of the impact it can have on your finances. The program we are specifically speaking of is Medicaid. If you have too much money in reserve, you can be disqualified. The way this can happen is by taking a lump sum of money that is needed for something like home repairs, but you put in your bank account first. If you don’t spend it when the new month rolls around, you could cost your Medicaid eligibility. Another way is if you take a monthly allotment and don’t spend it all each month. This will be a savings that long term could equal enough money in your bank account to disqualify you.

3. Doing Your Reverse Mortgage Through a New or Inexperienced Loan Officer.

It may be hard to believe, but bank loan officers don’t have to be licensed or trained to the States standards. On the other hand, mortgage brokers have very strict criteria set by the State to be allowed to do loans for the public. Virtually anyone can be a loan officer at a bank and experience is not necessarily a requirement. You could walk into a bank, apply for the job, and be taking applications in a very short period of time. It may be a bit biased, but I would prefer to deal with someone that is a trained professional, one that is licensed and can be held accountable to the State. Since the commission that a loan officer earns can be pretty high, it can tempt the younger, less experienced ones to overcharge in the hopes of making a big payday.

4. Avoiding a Reverse Mortgage Loan Because of Fear of the Unknown.

There are so many people afraid of a reverse mortgage for no other reason than they just don’t know who to trust. The facts seem too good to be true, so they shy away. What I would like to show is how to know what is true and how to make a smart decision. First off, there are too many “experts” in a field that they know nothing about. The amount of disinformation is almost overwhelming, even for someone who knows the truth. I have seen financial planners who will state that you lose your home when you do a reverse mortgage. I have heard several people say that you will leave excessive debt to your heirs. So here is a little advice that may soothe your concerns: First, try to find a loan officer that you feel you can trust. If you have an uncomfortable feeling about the loan officer, you should probably find someone else. You are not tied to the first person you talk to. Second, don’t listen to the advice of everyone out there. There is a great article (if I say so myself) called “Bad Advice From Good People about Reverse Mortgages”. Check it out if you want to see an article about how to qualify the person giving you the advice. The gist of it is; see if the person you’re seeking advice from actually knows anything. In the example above, the financial planner may be a genius about retirement money, but probably has never originated a loan. If you ask your kids for advice, which is strongly recommended, make sure they know what they are talking about. If they are not qualified to advise, have them attend your meeting with the loan officer. This also applies to you. I have seen people disqualify themselves because they don’t think they qualify. The best advice here is to ask a true professional in the field.

5. Moving Too Quickly During the Reverse Loan Loan Process.

It only takes about 10 minutes to teach you everything you need to know on a reverse Loan. But you will probably have questions that will make you more comfortable when you get the answers. Sometimes these questions take a little time to formulate, so don’t let your loan officer rush you into making a decision. Don’t mistake doing your loan quickly with pushing you to make up your mind in a hurry. Once you have determined you want a reverse mortgage, the process should be fairly quick. It will take about a month to a month and a half to get your loan closed.

6. Thinking That Being Older Will Get You More Money.

Bonus mistake: I know I said five, but this one came up while typing this. Waiting until you’re older is not always the best option. With rates being so low and terms being so good, it probably makes more sense to do the loan now rather than later. This is because adding another year or two to your age will get you a little more money. But, if the interest rates go up just a half of a percent, it could make thousands of dollars difference. The point is; Lower rates trump age, assuming all potential borrowers are at least 62 years old.

See more articles and blogs at Redwood Reverse Mortgage. David Prulhiere owns Redwood Financial Services and specializes in reverse mortgage education and loans.

How Do I Pay My Reverse Mortgage Back? You will need to pay your reverse mortgage back when the last survivor moves out of the home or passes away, all borrowers permanently move from the home, you stop paying property taxes or home insurance, or the property deteriorates beyond reasonable wear and tear and you do not resolve the issues.

The homeowner’s obligation to repay the loan is deferred until the owner dies, the home is sold, or the owner leaves.

For many retirees, a reverse mortgage can tremendously improve their quality of life. They are helping the older citizens in these states experience improved financial security and enjoy their retirement years the way they had dreamed of.

In a reverse mortgage, the home owner makes no payments and all interest is added to the lien on the property. If the owner receives monthly payments, or a bulk payment of the available equity percentage for their age, then the debt on the property increases each month.

The older the individual is, the more lenient the qualifications become, as the mortality rate increases with age. Once you make application and have been given the proper information and consultation with a seasoned professional, you will be required to attend a counseling session given by a local counselor on reverse mortgages.

The estate will be settled in the normal way, the property will be passed on to the heirs, and they can refinance out of the reverse mortgage. If they decide not to reside in the property, they can sell the unit, pay off the reverse mortgage, and keep the balance of the monies of the estate. They have one year, from the passing of the note holders, to settle the mortgage.

If the mortgagor fails to pay any of the installments or the interest, the whole remaining unpaid amount shall immediately due and payable at the option of the mortgagee or the lender.

And if the mortgagor can not pay, the mortgaged property shall be delivered on demand of the mortgagee free. And if the mortgagor could not deliver the said property, the mortgagee will have the authorization to get the mortgaged property, without any court order or any permission.

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