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The Aramco Group

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The Aramco Group specializes in providing an array of mortgage products and options for home buyers and those seeking to refinance their homes. It also hosts free semi-regular seminars to educate potential clients and financial planners about reverse mortgage products. For more information visit  www.ARAMCO.biz or call (877) 700-0972. Aramco Mortgage is a member of the Better Business Bureau and is licensed under California Cal BRE #01853626 and NMLS #277316

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ARAMCO Report - Monday August 25, 2014

 

According to a recent report from the Federal Reserve Bank of Chicago, U.S. economic activity in July expanded at a rate above its historical trend. While Fed Chairwoman Janet Yellen continues to outline positive news in the job market as support for the Fed increasing rates, the bond market remained relatively unchanged on Monday. 30-year fixed rates remain at around 4.125% while 15-year rates average 3.25%.

And now for something, completely different: Did you know that the average American is more than $200,000 in debt? And to top that, most Americans have less than $500 in savings.

For more information on a home purchase, refinance, or a reverse mortgage, visit our website at www.ARAMCO.Biz or call me at (866) 700-0942.

This is Mehran Aram with today's ARAMCO Report.

Ask Mehran Aram

ARAMCO Report - Friday August 8, 2014

 

Continuing conflicts in Ukraine, Iraq, and Israel has lead to a traditional flight to safety in U.S. treasuries, pushing the 10 year note yield down to its lowest level since June of 2013. This has kept mortgage rates low with conforming no point 30 year fixed rates averaging 4 1/8th and 15 year rates closer to 3 1/4. Meanwhile mortgage delinquencies are at their lowest level since the 4th quarter of 2007.

And now for something, completely different: The infamous Nike Swoosh was invented by Caroline Davidson back in 1971. She was only paid $35 for it!

For more information on a home purchase, refinance, or a reverse mortgage, visit our website at Aramco.Biz or call me at (877) 700-0942.

This is Mehran Aram with today's ARAMCO Report.

Ask Mehran Aram

ARAMCO Report - Wednesday August 6, 2014

 

According to the U.S. Department of Commerce, U.S. homeownership hit a 19 year low in the 2nd quarter at 64.8%, as tight lending standards and tepid wage growth drive Americans toward renting. It peaked in 2004 at 69.4%. But in California last quarter, the number of homes that sold for a million dollars or more rose to its highest level in 7 years. Meanwhile conforming no point 30 year fixed mortgage rates average 4 1/4% with 15 year rates closer to 3 1/4.

And now for something, completely different: Did you know that the largest hotel in the world is the Izmailovo Hotel in Moscow, Russia? It has 7,500 rooms and 4 towers, each 30 stories high!

For more information on a home purchase, refinance, or a reverse mortgage, visit our website at Aramco.Biz or call me at (877) 700-0942.

This is Mehran Aram with today's ARAMCO Report.

Ask Mehran Aram

ARAMCO Report - Friday July 25, 2014

 

According to the National Association of Realtors, Chinese buyers are now the biggest international players in the U.S. housing market. More than half of the $22 billion Chinese purchases were made in California, Washington and New York and nearly 1/2 of the purchasers were strictly for investment. In areas such as San Diego according to CoreLogic, the inventory of homes down to only 2 1/2 months supply. Conforming no point 30 year fixed mortgage rates average 4 1/8th with 15 year rates closer to 3 1/8th. 

And now for something completely different: Did you know that the city of New York paid $5 million in 1853 for the land that is now central park? Today it’s worth just under $530 billion dollars!

For more information on a home purchase, refinance, or a reverse mortgage, visit our website at www.ARAMCO.Biz or call me at (877) 700-0942.

This is Mehran Aram with today's ARAMCO Report.

Ask Mehran Aram

ARAMCO Report - Tuesday July 15 , 2014

 

Federal Reserve Chairwoman Janet Yellen made some bond friendly remarks in her semi-annual report to Congress. She said a high degree of monetary policy accommodation remains appropriate since the U.S. economic recovery is not complete and too many Americans remain unemployed. Most Fed officials do not expect raising rates until next year. Meanwhile conforming no point 30 year fixed mortgage rates still average 4 1/8th with 15 year rates closer to 3 1/8th.

And now for something, completely different: Did you know that computer users blink an average of 7 times per minute? The average person blinks 22 times per minute!

For more information on a home purchase, a refinance, or a reverse mortgage, visit our website at www.ARAMCO.Biz or call me at (877) 700-0942.

This is Mehran Aram with today's ARAMCO Report.

Ask Mehran Aram

ARAMCO Report - Wednesday July 2, 2014

 

A larger than expected increase in hiring, according to the private ADP report put some selling pressure on bonds. But mortgage rates remain near their lowest level of the year with conforming no point 30 year fixed rates averaging 4 1/8th and 15 year rates closer to 3 1/8th. Meanwhile the housing recovery continues with foreclosures down substantially and May pending home sales up by 6.1% and year over year, home prices up by 8.8%. This according to NAR and CoreLogic.

And now for something completely different: Mount Everest is growing at almost ½ an inch a year, that’s why a person today has to climb 27 inches higher to reach the peak compared to 1953.

For more information on a home purchase, refinance, or a reverse mortgage, visit our website at www.ARAMCO.Biz or call me at (877) 700-0942.

This is Mehran Aram with today's ARAMCO Report.

Ask Mehran Aram

ARAMCO Report - Wednesday May 21, 2014

 

There was very little change in the mortgage rates following the release of the minutes from the Fed’s last meeting as it revealed nothing new. The good news is that mortgage rates remain at their lowest level of the year with conforming no point 30 year fixed rates averaging 4 1/4 % and 15 year rates closer to 3 1/4 %. Meanwhile Fannie Mae cut its outlook for home sales for this year and for 2015.

And now for something, completely different: Did you know that the popular game Bingo was originally called “Beano” because players used beans to cover the numbered squares.

For more information on a home purchase, refinance, or a reverse mortgage, visit our website at www.ARAMCO.Biz or call me at (877) 700-0942.

This is Mehran Aram with today's ARAMCO Report.

Ask Mehran Aram

New and Improved: It's Not Your Father’s Reverse Mortgage

 

While some things never change, the opposite is true for the Reverse Mortgage program during the past few years.Even though there has been considerable debate about the abundance of changes to the program, the consensus is that these changes have resulted in a strengthened program and allows borrowers to be further protected.

New and Improved: It's Not Your Father’s Reverse MortgageOn the immediate horizon of change to the Reverse Mortgage program, is the HUD Financial Assessment. For Baby Boomers contemplating Reverse Mortgages both now and in the future, these new rules will transform and enhance the program even further. Borrowers, prior to application, will have a clear picture of their current financial situation and how it will change as a result of using a Reverse Mortgage for retirement planning or other financial goals. This is change that is definitely for the better.

From a Borrower’s and an Originator’s point of view, the new rule is both a challenge and an opportunity.  The challenge for the borrowers would be presenting more information, questions and paperwork up front, and resulting in longer presentations and further borrower education for the Loan Originators. Ultimately, the opportunity is invaluable and worth the challenge as it produces increased clarity and certainty that a Reverse Mortgage is the right long-term choice for the Borrower.  It’s a sustainable decision that the homeowner can rely on to serve them well, accomplish their goals, and also gives the Loan Originator a feeling of truly serving the needs of their client. 

An additional benefit of the financial assessment is the choice to bring your advisors into the decision making process. Whether it be family, mentors or professionals that you have relied on for guidance over the years, don’t be reluctant to include them in the equation.  A Reverse Mortgage can be a powerful tool in financial planning.  While it may not be for everybody, it can be perfect for some--even financial planners and investment advisors are quickly discovering its tremendous value.

The bottom line is that this financial assessment is not a pass-fail. Unlike in the forward market, it won’t cause a denial but rather, it will simply determine whether or not the borrower will need a "set-aside" payment for future property taxes and homeowners insurance.  Think of it as the “New, Improved Reverse Mortgage”--A safer, more attractive option for all prospective consumers who are considering using their home equity in planning their retirement.

For more information on Reverse Mortgages, refinancing or on a home purchase contact us at www.ARAMCO.biz or call 877-700-0942. 

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Would You Make The Cut?: New Assessment for Reverse Mortgage Borrowers

 

Later this year, the FHA will begin a financial assessment on borrowers looking to obtain a Reverse Mortgage. The purpose of the assessment is to evaluate the mortgageor's willingness and ability to meet their financial obligations.The assessment will also be used to calculate whether a portion of the Reverse Mortgage proceeds will need to be held back in order to cover property taxes and insurance in future years. According to HUD, the new financial assessment guidelines will focusWould You Make The Cut?: New Financial Assessment For Reverse Mortgages on:

•performing credit history analysis and cash flow/residual income
analysis;

• evaluating extenuating circumstances and compensating factors;

• evaluating results of the financial assessment to determine eligibility
for the HECM;

• determining if funding sources for property charges from HECM proceeds
will be required;

• completing a financial assessment worksheet; 

• verification requirements and documentation standards for credit, income,
and expenses.

Additionally, underwriters will look at the borrowers current monthly obligations (found on their credit report) and property charges that include property taxes, home owners insurance, and HOA payments. HUD will require a calculation based on the square footage of the home and is similar to the VA calculation of $.14/sq. ft. If a home is 1800 square feet, an assessment of $252/month would be included in the calculation when determining if a borrower qualifies.

Another component of the calculation will be based on the geographic region the borrower resides in. In the Southwest region, $589/month for a single person and $998/month for a couple would be added to the equation when calculating the financial assessment. For example: a couple living in Southern California who have a 2000 square foot home, $350/month in credit card debt, property taxes of $3000/year and paying $1200 for homeowners insurance would need to make $1978/month to qualify according to the new financial assessment. For many couples living in Southern California $1978/month may not seem like a lot of money however, many senior borrowers looking at a reverse mortgage are doing so because they are on a very tight budget and possibly living month to month.

Unfortunately, the few that do not pass this financial assessment may not qualify for a reverse mortgage and may be forced to sell their home. On a positive note, most borrowers will pass this new policy imposed by FHA.

For more information on purchasing a home, reverse mortgages or home financing contact us at www.ARAMCO.biz or call 877-700-0942.

Learn More

ARAMCO Report - Thursday May 8, 2014

 

As less Americans file for unemployment benefits, and layoffs slowly stabilize following weeks of volatility, the overall health of the U.S. workforce appears to be slowly improving. This is evidenced by consumer confidence which remains at its second-highest level in over six years, demonstrating an increased optimism among households. Interest rates remain quite low, with 30-year fixed rates at around 4.25% and 15-year rates averaging 3.25%.

And now for something completely different. Although he was deaf, Beethoven stimulated the ears of millions of people. Beethoven’s 74 minute long Ninth Symphony continues to affect our daily lives, as CDs were designed to contain exactly 74 minutes of music in order to play his final masterpiece in its entirety.

For more information on a home purchase, refinance, or a reverse mortgage, visit our website at www.ARAMCO.Biz or call me at (877) 700–0942.

This is Alexander Aram filling in for Mehran Aram with today’s ARAMCO Report.

Ask Mehran Aram  

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