Softening Housing Market and Reverse Mortgage

 

One question we have to ask in the United States is the weakening housing market. What happens to reverse mortgages?

 

There is no question that the United States housing market is softening.  Although prices may not yet be going down, and some markets remain relatively strong, the gains in real estate value across the country is over.  Maybe not forever, but certainly for now.

 

Recently, new housing starts were down 20% and the number of houses being sold has slowed year over year. Houses are sitting on the market longer and long gone are the days where sellers get 25% over their asking price within days. 

 

So what does the softening market mean for the reverse mortgages?

A reverse mortgage is a loan that is not paid back until death or permanent move. Therefore the borrower can never owe more than the value of their house. However, reverse mortgage lenders must be careful with how much money they lend. The amount of money they lend is based on a number of factors. Such as: borrower age, location of property and importantly, the value of the property.

 

The first two factors determine a percentage of the property value. So a reverse mortgage is based on the value of the property.  The property value is determined by an appraisal.  As the real estate market weakens, appraisals are not as high for a given property.  This means that the reverse mortgage borrower receives less money. 

 

Over time, real estate values have gone up and have gone up relatively consistently. This does not mean that real estate will always go up. It will not even guarantee home prices will be higher five or ten years from now.  Anyone who says, “Real estate prices may not go up as fast, but they will never go down,” is wrong. While we at Express Capital Mortgage do not predict real estate prices, history does not rule out that values will always increase, even in a given period of time.  

 

If you would like more information about a reverse mortgage Click here to order a free informational DVD and personal analysis.

Ryan Kohl

Direct 480-229-7029
Fax 480-656-8348

 Express Capital Mortgage Inc.

1820 E. Ray Road

Chandler, AZ 85225

 

 

 

 

 

Reverse Mortgage: Sharing the Decision

 

When Making your decision about a reverse mortgage, who else should you involve? You may have a financial planner or a trusted friend who know your circumstances and are good at figuring things out or discussing them with you. You may also discuss all your questions and concerns with your HUD-approved counselor or mortgage officer.

A really important question  to think of is your heirs. Many children of parents who get reverse mortgages are happy their parents are able to use their equity and remain living in their homes. Children are relieved to see that their parents can take care of their own needs; Many even encourage their parents to do so.

When deciding whether to get a reverse mortgage remember that it will greatly impact your estate. It will put your children in a greater tax bracket. So discussing this with them or an advisor will put your mind at ease. Seek someone you trust.

For more information please click here

Ryan Kohl, Vice President

Express Capital Mortgage

1820 E Ray Rd

Chandler, AZ   85225

480-656-8347

www.expresscapitalmtg.com

Loan Officers

Express Capital Mortgage, Inc. is a full service mortgage company.  Our headquarters is located in Chandler, Arizona.  We are licensed to and are actively engaged in the origination of residential and commercial mortgage loans under FNMA, FHLMC, FHA, VA, Conventional and Reverse Mortgages.

 

While our primary focus has always been on providing our clients with the most experienced and knowledgeable loan experts, unbeatable customer service, and a worry-free experience, we have also created an environment where experienced and entrepreneurial minded loan officers can successfully market their professionalism, integrity, products and service.

 

Our continuous training program, quality control, processing and closing services, product support, and technology are just a few of the support services that we provide to our loan officers, which allows our loan officers to offer customers quality service, competitive rates and fees.

 

Our compensation programs allow loan officers to make decisions based on market conditions and the needs of their customers without having to get corporate approval.  One of the best highlights of our compensation structure is it’s flexibility based upon the loan officer experience, needs and volume of business.  For our more experienced loan officers we offer a true 100% payout of all revenue generated on a loan and for our less experienced loan officers, who are still in training, we offer a very competitive commission split.

 

If you are a loan officer with a high level of professionalism and are self-motivated, then let us show you an environment where you can be the most competitive loan officer in your area, provide better service to your clients, and earn a lot more money.

 

Ryan Kohl, Vice President

Express Capital Mortgage

1820 E Ray Rd

Chandler, AZ   85225

480-656-8347

 

www.expresscapitalonline.com

www.ecmapply.com

www.expresscapitalmtg.com

Loan Recruiting

We understand the special needs of this market, and we have developed specific loan officer training to match those needs. Once certified as a  loan officers, you can take advantage of aggressive marketing campaigns and collateral materials designed to raise public awareness and generate qualified leads.

As the markets and technology change, we make sure you’re up-to-date by providing classes and seminars that allow you to work at your own pace. These formal programs are supplemented by hands-on supervision from our top quality management who take the time to work directly with you so you can advance your career to the next level. Building a successful career takes planning, which is why we provide you with personalized, best in class tools that are readily accessible. From our marketing department that is dedicated to developing on-target marketing plans and materials, to our Web portal that gives you 24/7 access to a full range of marketing collateral, we do all we can to help you generate leads and increase sales. To request more information about becoming a member of our team click here. Ryan Kohl, Vice President Express Capital Mortgage 1820 E Ray Rd Chandler, AZ   85225 480-656-8347   www.expresscapitalonline.com

What is the HECM 100?

 

HECM stands for Home Equity Conversion Mortgage. The most popular type of reverse mortgages are the HECM’s which are federally insured.

The HECM 100 loan stands for the interest rate margin. Usually the margin has been 150 basis point (1.5%). This 1-year US treasury rate is added to the margin to determine the interest charged on a reverse mortgage. Lenders came out with the HECM loans in 2007 that carried a 100bp (1.00%) margins. These are known as HECM 100 reverse mortgages.

Based on the Treasury Rate plus a margin of 100 basis points, the HECM 100 is a new product. The lower margin increases the Principal Limit or loan amount.

Ryan Kohl, Vice President

Express Capital Mortgage

1820 E Ray Rd

Chandler, AZ   85225

480-656-8347

 

www.expresscapitalonline.com

www.expressreverse.com

 

Reverse Mortgages

How do reverse mortgages work?

1. American Citizen over the age of 62

2. There is no income qualifications. It must be their primary residence.

3. Complete “FREE” HUD Counseling

4. Appraisal and Pest Report, can  be refunded at loan closing.

5. Payout can be in lump sum, a line of credit monthly payments or a combination of these.

 

These are just a couple of the features of getting a reverse mortgage…It is a great product for Seniors on a fixed income.

What a great way to live in your home mortgage free.

Ryan Kohl, Vice President

Express Capital Mortgage

1820 E Ray Rd

Chandler, AZ   85225

480-656-8347

www.expresscapitalmtg.com

www.expressmortgagesonline.com

www.ecapply.com