ARAMCO Report - The Mother of ALL Mortgage Blogs!

Seniors holding on to their homes longer

Posted by Mehran Aram on Sun, Feb 10, 2019 @ 05:02 AM

More of America’s senior citizens are choosing to put off downsizing in retirement and instead are making the decision to stay in their family home. According to a new report from Freddie Mac, this may be a significant cause of the housing shortage that exists.

An analysis from Freddie Mac suggests that seniors choosing to age in place is responsible for at least 1.6 million homes not being listed for sale in 2018. For many seniors living on a fixed income, holding on to the family home is often made possible through powerful financial tools like reverse mortgages.

Improved health and longevity are giving retirees more reason to utilize their homes equity as a form of supplemental income. Reverse mortgages allow those 62 or older to not only eliminate existing mortgage payments but also to receive extra income in the form of a lump sum, monthly payout or a line of credit.

Meanwhile, conventional conforming no-point 30-year fixed mortgage rates are averaging 4.375 percent, 15-year rates are near 3.75 percent and the 5-year ARM is averaging 4.25 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.

Topics: Reverse Mortgage, senior citizen, Retirement, Seniors, Freddie Mac, downsizing, Age in Place, housing shortage

Baby Boomers express desire to age-in-place

Posted by Mehran Aram on Wed, Jan 30, 2019 @ 05:01 AM

It used to be that empty nesters were expected to downsize but according to a new survey, America’s seniors are expressing a strong desire to stay in their family home. The Housing Confidence Index, released by Chase and Pulsenomics, found that 52 percent of Baby Boomers intend to never move out of their current home.

Rather than relocating, 88 percent of respondents say they plan to make improvements to their current home. Nearly 66 percent of those polled said they think their home values will continue to rise, providing incentive for homeowners to age in place and utilize their home as a source of income.

Powerful financial tools like reverse mortgages allow exactly that. In addition to eliminating monthly mortgage payments, reverse mortgages can provide supplemental income in the form of a lump sum, monthly payout or a line of credit. This can provide those 62 or older with a pathway to stability and security in retirement.

Today, conventional conforming no-point 30-year fixed mortgage rates are averaging 4.375 percent, 15-year rates are near 3.875 percent and the 5-year ARM is averaging 4.375 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.

Topics: senior citizen, Seniors, Housing Market, Housing, downsizing, Baby Boomers, boomers

Purchasing Your Home in Retirement: Using HECM Reverse Mortgage

Posted by Craig Sutliff on Thu, May 8, 2014 @ 09:05 AM

Downsizing? Refinancing? Wanting a change of scenery? It is a common misconception that you can’t use a reverse mortgage to purchase a home. That is entirely false!

Purchasing Your Home in Retirement:Using an HECM Reverse Mortgage

Many of our elderly clients live in homes in which they’ve raised their families and some are looking to downsize or move into a retirement community. This move allows them to take advantage of less upkeep of a home and to enjoy their time doing other activities. With a Home Equity Conversion Mortgage (HECM) they are able to accomplish this, and can avoid moving into costly retirement homes. 

Downsizing is not the only way to reap the benefits of a HECM Reverse Mortgage. With many of our clients, we are able to list and sell their home so they can go on to purchase a new home. This is accomplished by using some or all of the proceeds they received from selling their home as a down payment on a new home. We simply finance the purchase of this new home with a HECM Reverse Mortgage for purchase, and the homeowner enjoys their new home with out the usual burden of monthly payments. If the property purchased is a home of equal or lesser value than your existing home, you in most cases can transfer the current taxable value to your new property (of course it's a great idea to consult your tax professional, we're just the real estate and. Mortgage pros). This means that property taxes WON’T go up AND, with the Reverse Mortgage, you will have NO mortgage Payment (just be sure to follow the terms of the loan)! Even with these benefits, you are not restricted from purchasing a higher-value home if you so choose.

Owning a home is also not a prerequisite to get a Reverse Mortgage. Many seniors that are currently renting and may have saved money over the years or came into an inheritance, can use some of their savings to purchase a home using a Reverse Mortgage.  This provides a tremendous amount of freedom and security for the senior. With ownership, the housing payment is essentially fixed and you, the owner, are no longer subject to ever-increasing rent payments.

While being a homeowner means being responsible for property taxes, insurance, and maintenance, this option provides a freedom that renting does not. With owning a home, YOU are in charge, allowing you to make changes to the space, etc. without having to worry! With no mortgage payment, the costs of owning a home can be very manageable and the benefits of owning far out-weigh the uncertainties of renting.

Call The ARAMCO Group at 877-700-0942 for more information on how a HECM for Purchase Reverse Mortgage can help you!

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Topics: Reverse Mortgage, HECM, home buying, senior citizen, Retirement, Aramco Mortgage, Aramco Properties, Retirement Concerns, downsizing, retireing without a mortgage, 10-31 excahnge, Selling, HECM for Purchase