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April 3, 2017

How a Reverse Mortgage Can Help You Purchase a Home


Andrew Scammon from Alpine Mortgage joins me today to help explain how you can use a reverse mortgage to purchase a home.

Today I’m joined by Andrew Scammon from Alpine Mortgage to talk about how you can use a reverse mortgage to purchase a home. 

We work with more and more folks nowadays who are either retired or about to retire and would like to buy a new home but are unsure they can qualify for a conventional loan. This is typically because they either live on a fixed income or are about to live on a fixed income. 

If you’re planning to downsize as part of your retirement plan, a reverse mortgage could be a useful tool for you because when you compare a reverse mortgage to a cash purchase, it effectively doubles your money.

This comes in handy for anyone wanting to sell off their existing home and downsize but knows they won’t realize enough benefit from that sale to make a cash purchase for their next home. If you net $200,000 from your home sale, that’s not going to buy much house. A reverse mortgage can double that sum and allow you to purchase a $400,000 house. 

Of course, there are some cautions you need to take. You need to work with a seasoned Realtor who knows their way around the market. If you’re looking for a condominium, it would have to be an FHA-approved condominium. For many people, though, it’s become relatively commonplace to identify properties they love without having to worry about making a mortgage payment or qualifying for one because of reverse mortgages. 

REVERSE MORTGAGES ALLEVIATE THE WORRY OF HAVING TO QUALIFY FOR A MORTGAGE LOAN.

With reverse mortgages, payments are allowed but not required. You can purchase a $400,000 house by putting down $200,000 and getting a $200,000 reverse mortgage. When the house goes to your estate or heirs, they have time to prepare the property, market it effectively, and realize the best gains on it that they can. The reverse mortgage balance is then paid off and the heirs divide up the remaining equity. The only age requirement for using a reverse mortgage is at least one of the borrowers must be 62 years old. 

I want to thank Andrew for joining me today. If you know anyone who is looking to use a reverse mortgage to purchase a home, you can call him at (562) 743-0111 or visit his website at effectiveretirement.com. 

If you or anyone you know are looking to buy, sell, or downsize, feel free to reach out to me. I’d be happy to help.
Posted in How a Reverse Mortgage Can Help You Purchase a Home
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March 8, 2017

What to Expect Going Forward in the LA Real Estate Market?

Today we're taking a look back at how the market performed in 2016 and what we should expect in LA moving ahead in 2017.

Today I wanted to take a moment to take a look back at how the Los Angeles housing market did in 2016 and provide a forecast for what we can expect from the market moving forward in 2017.

Last year in Los Angeles County, we saw the median price for single-family homes go from $535,000 to $580,000 in 12 months, which is an 8.4% increase. Moving to Orange County, we saw the median price rise from $695,000 to $735,000 in that same 12-month span from January 2016 to January 2017, good for a 5.8% increase. We had a really strong year in terms of price appreciation.

We also continue to experience very low levels of housing supply in our market.

In LA County, for example, we have just 2.4 months worth of homes for sale. That means that if no new homes came onto the market, it would only take 2.4 months to sell all the homes currently on the market at the going rate, and that's a very low number. In Orange County, we have just 2.6 months of supply. These are some of the lowest levels of inventory we've seen in a long time, and they are certainly the lowest numbers I've seen in my 13 years in real estate.

There are a few reasons for this low inventory, starting with the fact that there are a lot of people looking to buy a home thanks to low interest rates. Additionally, there are a lot of people who simply don't want to sell their house. Many of these people are baby boomers who have lived in their house for decades and just don't have a reason to sell it.


THE CALIFORNIA ASSOCIATION OF REALTORS FORECASTS THAT WE WILL HAVE ANOTHER GOOD YEAR.

This year, the California Association of Realtors forecasts that we will have another good year with prices rising about 4.6% throughout the state of California. If you've been thinking about selling your house, it's a great time to figure out what your home is worth, and we've got great online value calculator that can give you an idea. This calculator can't consider everything in your home like your view and the updates you've made to the home, which is where I come in.

If you'd like me to tell you exactly what your home is worth or you're thinking about buying a home in the LA area, give me a call or send me an email. I'd be glad to help!
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Location: Seal Beach, CA, USA
Posted in 2017 Real Estate Market Forecast for Los Angeles, Long Beach, and Orange County, Southern California
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Dec. 16, 2016

Should You Have Your Home in a Trust??

Today I am here with Reba Birmingham from Long Beach Law to talk about the pros and cons of having your home in a trust.

The main pro to having your home or property in a trust is avoiding probate. Probate is very expensive, and it typically takes 10 months to a year. It cost 4% of the first $100,000 and 3% of the next $100,000. It then costs 2% of the next $800,000.

Something important to know is that real estate is valued at its fair market value. So, if you have a $1 million house with a $900,000 mortgage, you don’t have a $100,000 probate, you have a $1 million probate. So, if you want your loved ones to inherit the house instead of having to sell it, it’s best to do a trust.

The con to having your home or property in a trust is that is does cost a little bit. Always avoid Internet bargains because you could get scammed. If you do want to put your property in a trust, have a professional help you.

If you have any other questions, you can get a hold of Reba by phone at (562-621-6300) or go to www.longbeachlaw.com.
Posted in Should You Have Your Home in a Trust??
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Nov. 16, 2016

Are the Holidays a Good Time to Sell in LA & Orange County?

 


The holiday season is actually a great time to sell a home. Rates are low, fewer homes are on the market, and a lot of buyers need to close by the end of the year.

With the holidays approaching, myself and Corinne Wallace are often asked questions by folks this time of year that are thinking of selling. They want to know if selling now in LA and Orange County is a good idea, or if they should wait until after the new year. 

In our experience, now is a better time to sell than if you wait. There are five different reasons why:

1. Interest rates are still low. There is a chance that they will go up in December when the Fed meets. Locking in a low rate now is smart.

INTEREST RATES ARE STILL LOW, BUT MAY GO UP IN DECEMBER.

2. There are typically fewer homes on the market, giving buyers fewer to choose from. 

3. Homes that are decorated for the holidays really sell quickly.

4. There are buyers that want to buy and close before the holidays. December is actually the top month for closed home sales.

5. The buyers looking to buy during the holidays are very serious. There will be fewer looky-loos coming through your home.

If you or someone you know is looking to buy or sell a home in Long Beach, LA, or Orange County, give us a call or send us an email. We look forward to hearing from you.
Posted in Are the Holidays a Good Time to Sell in Long Beach, Los Angeles & Orange County?
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