ARAMCO Report - The Mother of ALL Mortgage Blogs!

ARAMCO Report - Monday March 9, 2015

Posted by The Aramco Group on Tue, Mar 10, 2015 @ 08:03 AM

According to the National Association of Realtors, the housing market has been heating up in the past few weeks. Growing demand and a tight supply have been driving prices higher. But in February there were significantly more homes for sale than a year ago. Based on the ratio of listing views to the number of listings, Waco, Texas made the top of the list while Carlsbad, California came in at 17th. Meanwhile conforming no point 30 year fixed mortgage rates average 3 7/8ths with 15 year rates closer to 3 1/4%. And now for something completely different… Did you know that the most expensive bottled water in the world costs $60,000 for a 70ml bottle? The water itself contains 5mg of gold dust and the bottle is made of 24k gold.

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

Topics: home sales, water, Housing Market, Carlsbad, TX, Waco, CA, National Association of Realtors, Bottled

The End of The Standard Fixed Rate Reverse Mortgage

Posted by The Aramco Group on Wed, Dec 19, 2012 @ 12:12 PM

News yesterday from the desk of acting FHA commissioner, Carol Galante, illustrated some drastic changes to come for the reverse mortgage product. Due to the FHA’s $16.3 billion deficit as evidenced from the latest annual audit, the FHA is attempting to shore up its accounts by implementing changes to the reverse mortgage product as early as January 31st. These changes will be extremely significant and are as follows:

  • Elimination of the standard fixed rate reverse mortgage
  • Capping the loan amount, leaving borrowers with 20%-30% less cash back
  • Increased mortgage insurance
  • New credit and income qualifications

Aramco ReverseIf these changes occur on January 31st it will mark the end of the reverse mortgage’s most popular product, the fixed rate lump sum HECM.  Americans have selected this product overwhelmingly since its introduction in 2008 due to the large lump sum of cash it provides as well as the security a fixed rate brings to a person’s retirement. The good news is that any reverse mortgage started before January 31st will not be affected by these new rules, but unfortunately it seems as though the standard fixed rate reverse mortgage’s days are numbered.

In addition to the elimination of the fixed rate reverse mortgage, many Americans will be affected by the new credit and income qualifications. Currently qualification is solely based on age and equity, but with these changes occurring, lower income and lower credit score borrowers might experience difficulty qualifying for a reverse mortgage. The proposed increase in mortgage insurance and cap on loan amounts will also leave you with less cash back, as the FHA endeavors to cure its $16.3 billion budget deficit.

If you have any questions regarding these changes or if you would like to begin a reverse mortgage for yourself before these changes take place on January 31st, please feel free to give us a call as we are more than happy to help you decide if a reverse mortgage is right for you. 

Topics: Reverse Mortgage, HECM, Aramco Financial, The Aramco Group, Mehran Aram, senior citizen, Retirement, trust, California, Aramco Mortgage, Carlsbad

Not Your Grandmother's Retirement - Mehran Aram

Posted by The Aramco Group on Tue, Sep 18, 2012 @ 11:09 AM

Reverse MortgageIt begins with receiving AARP brochures in the mail, continues by discussing Medicare benefits, and sadly includes the inability to read your own watch. The aging process as I’m learning very quickly is something none of us are immune too. And while I’ve yet to find a way to prevent it from occurring there are many steps which our society has been trained to take in order to make these golden years of our life a little more golden.

The problem is the steps we took back in our most productive years don’t seem to be getting the job done these days. IRA’s are depleted, home values are deflated, and our investment portfolios are depressed.

Americans, both wealthy and in financial hardship have searched long and hard for a 21st century tool that can enable them to constitute a safety net for the rainy days to come, to secure their homes and lifestyle, or even garner disposable income to invest in their futures. Since 2006 over half a million scrupulous Americans have realized immense benefit from the Reverse Mortgage product. And why do over 80% of all Americans with a reserve mortgage proclaim that they would recommend the product to a friend?

Because it works.

Americans over 62 years of age with equity in their homes are not only eliminating their monthly mortgage payments if they have one, but scores of individuals are benefiting from hundreds of thousands of dollars of cash. It’s a perfect scenario for any retired individual on a fixed income, or even an experienced investor who values cash in an economy where “cash is king.”

And no, you do not give up ownership of your home, there are no stringent income or credit qualifications, the bank can never kick you out of your home, the fees can be less than normal financing, you can still leave your home to your surviving family members, and a reverse mortgage is not a loan of last resort. Instead, it is a viable, responsible, and extremely lucrative retirement strategy.

But how does it work?

Countless educated Americans have simply shunned the Reverse Mortgage product because it seems like something just too good to be true. But in reality it’s a simple yet dynamic product. The FHA insurance assures the borrower against any bank default, while simultaneously insuring the bank that at the maturation of the loan the entire loan amount will be paid whether or not the home value covers it. Thus, banks see this as a guaranteed investment and have your best interest in mind, as their benefit increases the longer you live in your home due to accruing interest.

We are currently in a significant metamorphosis of America’s mindset toward the reverse mortgage. Due to improvements in regulations, credentials, and historically low interest rates, the reverse mortgage has never been a more secure financial instrument. Over the next few years we will see the reverse mortgage evolve into a vital part of the fabric of the American retirement, and when sitting at the dinner table with our nation’s most seasoned citizens the question will not be if, but who they trusted their reverse mortgage to.


Mehran Aram CRMP, President/CEO

The Aramco Group

Topics: Reverse Mortgage, Aramco Financial, The Aramco Group, Mehran Aram, senior citizen, Retirement, Aramco Mortgage, home ownership, Carlsbad, integrity, retirement planning

Why Be Shy About Your Reverse Mortgage?

Posted by The Aramco Group on Thu, Aug 16, 2012 @ 14:08 PM

Many seasoned citizens today are often times very private, even embarrassed when talking to their friends regarding the reverse mortgage on their homes. Even though the reverse mortgage was a huge benefit to these people, they still maintain a high level of anxiety  when talking to their friends and family about the product. A recent focus group gathered 10 couples who had benefited from a reverse mortgage. None of the couples were aware that the other people had also attained reverse mortgages, and when the group was asked if anyone had a reverse mortgage, no one was bold enough to answer affirmatively.

Aramco FinancialBut, why? Why are people apparently so embarrassed or hesitant to let their friends and family know that they benefited greatly from a financial tool which has given them stability and security for the rest of their lives?

I have thought long and hard about this question and have finally arrived at an answer. It is human nature to quickly associate a person, place, even a financial product with certain feelings and stereotypes. But just as everyone knows stereotyping a person is a grave mistake, so is stereotyping the reverse mortgage. Here’s what I believe has happened with the reverse mortgage product.

When you hear the word reverse mortgage what do people think?

Seniors  62+


House rich cash poor

No Mortgage Payments

Low-income seniors

Bottom line is people automatically associate getting a reverse mortgage with being down and out, or in a dire financial position. And of course, no one talks with their friends about being in a financially poor state or in desperate need for cash, people talk to their friends and families about smart investments and strong financial health. Thus, seniors assume that if they open up about their reverse mortgage, their friends and family will incorrectly assume that they were strapped for cash, or on the verge of losing their homes. And this of course is where the incorrect stereotype lies. The reverse mortgage while extremely helpful for those in financial distress, is not a loan of last resort, the majority of clients here at Aramco Financial have thousands of dollars in the bank and are simply planning for the unexpected or freeing up extra cash to use on investments. Not only should people not be embarrassed about their reverse mortgage, but it is something to be proud of. Through a reverse mortgage a senior secures his or her house for life, while eliminating mortgage payments and freeing up extra funds.

Over the last decade, more and more seasoned citizens have been educated regarding the truths of a reverse mortgage and have benefited themselves from this dynamic product. A recent study shows that 80% of people who have a reverse mortgage would recommend the product to other people. I believe we are in a major transition of America’s attitude towards the reverse mortgage. Hundreds of thousands of seasoned citizens are annually finding benefit in the reverse mortgage and soon the contagion of satisfied reverse mortgage borrowers will create a shift in the outlook towards this product.

I believe in 5 or 10 years, instead of 80% of people anonymously recommending the reverse mortgage to others, we will find 80% of people openly talking about their reverse mortgage to friends and family. And instead of being embarrassed, or hesitant to talk with people regarding a reverse mortgage, the reverse mortgage will soon be discussed at the dinner table much like any other investment, refinance, or other financial tool. The big issues discussed among the seniors of America will be healthcare, retirement, and not if, but who to get their reverse mortgage with. 

Topics: Reverse Mortgage, Aramco Financial, The Aramco Group, Mehran Aram, senior citizen, Retirement, veterans, California, home ownership, Carlsbad, retirement planning

What is APR? Aramco Mortgage explains...

Posted by The Aramco Group on Wed, Aug 1, 2012 @ 14:08 PM

The Aramco GroupAnyone who has ever heard an advertisement for a mortgage company trying to garner your business (which should be everyone reading this, unless your closest neighbors are cattle) should be quite familiar with the term “APR.” But what exactly is the APR? What is the difference between APR and the actual interest rate on a mortgage?

To put it simply, APR is a way of allowing the consumer to compare different loan scenarios side by side. It enables one to calculate upfront costs, break even points, and savings into their decision making process. A normal interest rate of say 4% for 30 years, merely defines what rate of interest will be owed to the bank during the life of the loan. But APR  annualizes the closing costs, mortgage insurance, loan fees, and various other costs of transacting the loan.

Let’s use an example. Say your mortgage broker (which should of course be Aramco Mortgage) offers you two different 30 year fixed rates:

3.625% with no points and no closing costs


3.5% with $5,000 in closing costs.

It’s tough right off the bat to determine which loan product is the best deal. Of course, the first step your loan professional should take is to determine the break-even point with option B. Let’s say the Home Value = $450,000 and the Loan Amount = $300,000. At 3.625% the monthly payments would be $1,459, while at a rate of 3.5% the payments would equal $1,436, a savings of $23 a month.  Thus, taking into account the $5,000 closing costs needed to buy the rate down, it would take 217 months or 18 years to break even. Of course, this is a bit complicated and time consuming to go through constantly, so APR allows us to compare the two loan programs much quicker.

Aramco Mortgage’s rate of 3.625% would also have an APR of 3.625% due to the lack of closing costs, while the 3.5% rate would actually have an APR of 3.636% once costs are factored in. Of course the difference is minimal, and no loan professional can really make the decision for you as far as which program is best, but the APR allows you to compare two very different situations. One situation may be better in the short-term, if one doesn’t have the cash to pay closing costs, while the other situation might be best for someone planning to stay in their home the rest of their lives and who does have the cash to pay closing costs up-front.

While APR is definitely a helpful tool, it is far from perfect, as it leaves out some costs such as application fees, late payment charges, title examination, appraisals, and insurance premiums. As a general rule, APR is more important to look at if planning to stay in the home for the life of the loan, and less important if you plan to sell or refinance again in the near future. Stay tuned for more terms and common questions answered by Aramco Mortgage, or if you have any nagging questions that you’d like us to answer in a future blog don’t hesitate to leave a comment or send us an email.

Topics: Aramco Financial, The Aramco Group, Interest Rates, California, Aramco Mortgage, Carlsbad, Mortgage rates

Happy Independence Day! - From The Aramco Group

Posted by The Aramco Group on Wed, Jul 4, 2012 @ 08:07 AM

The Aramco GroupAs we celebrate this Independence Day, I’d like to take just a few minutes of your time from your hot dogs, fireworks and patriotic music to thank the men and women who have given us the amazing blessing of being able to celebrate our Nation’s 236th Birthday. This country has given millions of people the ability to follow their dreams, and has left us with no excuses for falling short. I’d like to thank all those who have served in the armed forces and have sacrificed their time, talents, and even their own lives and the lives of their family members, for the continued safety and freedom that we have come to expect in this great country. 

While there is no shame in celebrating with fireworks, barbeques, friends and family, we should remember the brave soldiers today, who are still stationed across the globe to preserve the freedom that we so often take for granted. A special Thank You goes out to these men and women who have put their country first, and have honorably sacrificed for the greater good of our country. As I sit here watching the magnificent firework show with my neighbors, I can’t help but think of how lucky we are to be living in this country. Whether you’re an immigrant who came to the U.S.A. looking for a better life, or an American, born and raised, we can all agree that we have a lot to be thankful for being able to call ourselves, American. 

This 4th of July is a perfect time to explain Aramco Financial’s new motto, “You Secured Our Future, We’ll Secure Yours.”  Aramco Financial who serves the seniors of California with its Reverse Mortgage expertise, has introduced this as a representation of our thanks to the men and women who have shaped this country into what it is today. To the women who rallied for voting rights, the brave people who protested for equality, to the men who fought in the bloody world wars, and the everyday Americans who took it upon themselves to pass down to us the most amazing gift of freedom, Thank You. 

We truly have today’s seniors to thank for the comforts we enjoy today. So to the Americans who have passed along to us freedom, innovation, and the American Spirit, thank you for Securing Our Future, and in turn We’ll Secure Yours. Whether it’s by securing your retirement with a Reverse Mortgage, or even simply answering a couple burning finance questions you might have, we want to in our own way show our thanks. We wish you all a happy and healthy 4th of July, and once again, Thank You.


You Secured Our Future. We’ll Secure Yours.


Happy Independence Day!

The Aramco Staff

Topics: Veteran's Administration, Reverse Mortgage, HECM, Aramco Financial, The Aramco Group, San Diego, senior citizen, Retirement, veterans, trust, California, Aramco Mortgage, Carlsbad, Senior Moments, Military, retirement planning, Aramco Properties, ethics

Mehran Aram CRMP – Certified Reverse Mortgage Professional

Posted by The Aramco Group on Thu, Jun 28, 2012 @ 11:06 AM

Mehran Aram Certified Reverse Mortgage ProfessionalThe world’s most renowned doctors are MDs, the best businessmen are CEOs, CPAs are the masters of accounting, and now the CRMP defines the premier Reverse Mortgage Professional. This highly sought-after designation not only differentiates an average reverse mortgage originator from a premier reverse mortgage professional, but also ensures a standard of ethics, experience, competency and customer service. The Certified Reverse Mortgage Professional or CRMP designation has been bestowed to less than 10 people in the state of California, and Mehran Aram, President and CEO of Aramco Financial is the only CRMP to exclusively serve California homeowners for their reverse mortgage needs.

Educated seniors across the state are now focusing their search for reverse mortgage services to those who have earned this highest and most prestigious certification the industry offers. Why is the CRMP designation such a big deal? Here at Aramco Financial we understand what an important financial decision it is to attain a Reverse Mortgage, and inherently there is an enormous amount of trust given to the reverse mortgage company as well as the originator of the loan. Thus, it is extremely important that this trust is given carefully, and only to a company who is dedicated to your best interest. The CRMP (Certified Reverse Mortgage Professional) designation maintained by Mehran Aram at Aramco Financial allows seniors to comfortably put their trust in a company and a person who has proven their knowledge, experience, integrity, and dedication to the seniors of California. It is with great excitement that we introduce you to the newest professional standard, and we hope our own CRMP designation will help express to you our dedication to our clients’ best interests and financially sound retirement.  


If you’re looking for more information on the reverse mortgage, interested in getting started, or simply searching to educate yourself further, please don’t hesitate to call us at 1(877) 700-0942, visit our website at, or Sign Up for one of our upcoming dinner seminars in San Diego County where we discuss the reverse mortgage product and address the questions and concerns of the seniors in our community. 

Topics: Reverse Mortgage, HECM, Aramco Financial, The Aramco Group, San Diego, senior citizen, Retirement, real estate, trust, California, Aramco Mortgage, home ownership, Carlsbad, Senior Moments, integrity, retirement planning, ethics

Happy Summer!...From The Aramco Group

Posted by The Aramco Group on Thu, Jun 21, 2012 @ 15:06 PM

For those of you who have been following my blog for the last few months, you know by now that I like to stick to the cold hard facts. I might mix a little humor in here or there, but the majority of the time I’m all about business; Reverse Mortgages, Refinances, Real Estate, and all things Finance. So today, on this first day of summer, allow me to diverge just for one day on a bit of a lighter note.The Aramco Group

First, imagine your friends, relatives, and fellow Americans in New York, Chicago, Atlanta, Miami, even beautiful Kansas…Currently they’re experiencing temperatures well above 85° with humidity closer to 100°. So, let’s take just a brief moment out of our busy life in paradise to be grateful for the amazing state of California that we all call home. Our finances, traffic, even sports teams may be far from perfect, but if there exists a perfect climate I believe it’s right here in this golden state of California.

At The Aramco Group we take pride in our dedication to Californians. We have chosen to exclusively service California with their financing needs so that we can more completely understand our client’s lifestyle, economics, and everyday joys and concerns. Mehran Aram and his competent staff at The Aramco Group are here for all Californians and have put people before profit for over 20 years. More than anything it is our goal to educate Californians whether it’s regarding the benefits a Reverse Mortgage can have on a senior’s retirement, how much one can save on their monthly mortgage payments with a Refinance, or any other real estate finance needs. If a question should ever arise, please don’t hesitate to call and we’ll give you a detailed, honest, and friendly answer to any question or concern.

On behalf of all of us at The Aramco Group, we wish you a safe, exciting, and memorable summer of 2012! We hope that one day we can earn your trust and business and impress you with our “white glove” customer service.


The Aramco Group Staff


Topics: Reverse Mortgage, HECM, Aramco Financial, home buying, financial recovery, The Aramco Group, San Diego, senior citizen, Retirement, real estate, trust, HARP 2.0, California, Aramco Mortgage, home ownership, Carlsbad, integrity, HARP, Aramco Properties, refinance, Mortgage rates

Is The Reverse Mortgage A Loan Of Last Resort?

Posted by Alexander Aram on Tue, Jun 12, 2012 @ 10:06 AM


Having been in the Reverse Mortgage business for numerous years we have heard nearly every possible question, concern, and often times myths regarding the Reverse Mortgage product. These questions and concerns are normally valid and important questions that should be asked during any major financial decision. Other times though, the questions addressed are merely myths, rumors, or simply falsities that we must inform our clients of. While many of these myths have been discussed in previous articles, I would like to focus this blog post on theHow Much Money Do I Qualify For? myth that Reverse Mortgages are only for those in dire financial stress, or that a Reverse Mortgage should only be considered as a last resort. While the Reverse Mortgage can be extremely beneficial for a senior on the verge of bankruptcy, default, or other financial hardships, our average client is in quite the opposite position. 

Many Aramco Financial clients desire a Reverse Mortgage because they see the value in taking something they previously had no access to (their equity) and turning it into a very lucrative part of their retirement strategy. Just over the last few months, Aramco Financial has dealt with many seniors with millions of dollars in the bank, yet have used the cash received from a Reverse Mortgage as either an extra safety net in case of unforeseen financial hardship, or as funds to purchase income producing rental properties, effectively growing their estate for years to come.

So, why have you heard some very successful estate planners, CPAs, and financial planners refer to a Reverse Mortgage as a “loan of last resort?” Is it because they’re lying to you? Is it because we’re lying about the benefits of a reverse mortgage? Neither. As a company, we confess to have had the same mindset towards the Reverse Mortgage product prior to exhaustively examining, analyzing, researching, and finally comprehensively Retirement Strategyunderstanding the many intricacies of this powerful financial tool. Unfortunately though, just as we were once unaware of the ins and outs of this product, so too are many financial planners, CPAs, and attorneys today.

Realizing this industry wide lack of understanding, Aramco is in the process of launching free educational seminars to financial planners and CPAs across California so that more advisors are knowledgeable of the product and more California seniors can reap the benefits of a Reverse Mortgage. Just as it took us some time to completely understand this powerful financial tool, we don’t expect all financial planners, CPAs, and attorneys to understand immediately the benefits of a Reverse Mortgage. But, as we are seeing more and more on a daily basis, financial advisors are beginning to recommend the Reverse Mortgage to their clients, not as a “loan of last resort,” but as a viable, responsible, and extremely lucrative retirement strategy.


Topics: Reverse Mortgage, HECM, Aramco Financial, The Aramco Group, San Diego, senior citizen, Retirement, veterans, real estate, California, Aramco Mortgage, home ownership, Carlsbad, Senior Moments, investing, retirement planning

Reverse Mortgages - Can The Bank Take My Home?

Posted by The Aramco Group on Mon, Jun 4, 2012 @ 16:06 PM

If you default on your conventional home loan, the bank can and will take your home from you if you’re late on your mortgage payments, you fail to pay your taxes, and if you fail to maintain your insurance, among many other reasons. So, what can a retired person with a fixed income and rising cost of living do to secure their home for the rest of their life?

There’s a reason why over 760,000 seniors have secured their homes with a reverse mortgage since 1990. Educated seniors nationwide are finding that the reverse mortgage provides them an effective way to ensure that they and their spouses are able to enjoy their homes for the remainder of their lives. Many seniors today though are still nervous, worried, even fearful that a reverse mortgage allows the bank to take their home whenever they like.Retirement Security But I believe instead of worrying about the most common reverse mortgage myth, I would be much more fearful of the effects of inaction, the effects of not getting a reverse mortgage.

A reverse mortgage essentially accomplishes the following things, eliminates mortgage payments, and on average puts $130,000 in the hands of our clients, both of which virtually ensure the security of a senior’s home for their lifetime by guaranteeing the avoidance of a conventional loan default. As for the myth that the bank can take a home with a reverse mortgage on it at their discretion, this is absolutely untrue and as a senior you are actually insured of your security by the FHA. Only if property taxes and insurance go unpaid, the home is no longer used as a primary residence or necessary repairs are not made can the bank even consider such a move, which they would never want to do for fear of bad publicity.

The reverse mortgage acts as an insurance policy against future unemployment, the need for in home care or other expensive healthcare costs, home maintenance, or simply maintaining ownership of your most prized possession, your home. Just as people consider foregoing insurance as a risky gamble, I believe the same can be said about a senior who qualifies for a reverse mortgage but decides against it. Why? Many seniors are one “shock” from not being able to make their mortgage payments, whether that shock is a sickness, unemployment, or investment failure, all of which after potential loan default, will give the bank the right to seize your home.

The result? A reverse mortgage didn’t cause you to lose your home, but quite the opposite, it was the lack of a reverse mortgage that can potentially hurt many seniors who are unprepared for what the future might hold.  Let me be clear, the reverse mortgage is not for everyone, but those that it makes sense for should seriously consider the stability and security a reverse mortgage can bring to their future.

How Much Money Do I Qualify For?

Topics: Reverse Mortgage, HECM, Aramco Financial, The Aramco Group, San Diego, senior citizen, Retirement, real estate, Aramco Mortgage, home ownership, Carlsbad, retirement planning