ARAMCO Report - The Mother of ALL Mortgage Blogs!

Buying a New Home with a Reverse Mortgage

Posted by The Aramco Group on Thu, Apr 23, 2015 @ 13:04 PM

Did you know there is a way to buy a home and never make a mortgage payment?

Imagine this scenario:

You have $200,000 and you are looking for the perfect home that suits your retirement.

You are looking forward to buying your next home outright because you have spent a lifetime making monthly mortgage payments and to continue to would be a drag.

You are scared that $200,000 is not enough to find a home in San Diego.

You and your spouse engage a realtor, and look around the San Diego area for a perfect home or condominium, and you are disappointed that you cannot find any homes that…

1) Suit your family’s needs,

2) Are in your price range, and

3) Are in the neighborhood you want them to be.

Is this home the right size?

What are you to do?

Consider a using a reverse mortgage as a tool to get the right home.

If you or your loved one are over the age of 62, then you might qualify for a Reverse Mortgage for Purchase. It could expand your buying power and you still won’t have to make mortgage payments — if you do not want to!

The loan amount one can qualify for with a Reverse Mortgage for Purchase is based on the age of the youngest borrower. If the youngest borrower is 62 or over, then the loan can be the lesser of 52% the home’s appraisal value, the purchase price or the maximum lending limit.

Let’s go back to our situation where you and your spouse have $200,000 and are looking for the perfect San Diego home to right-size into retirement. If you and your loved one are 62 and qualify for a reverse mortgage, then 52% of the appraised value of the home you find can be covered by the reverse mortgage! 

You find the perfect home for $390,000. You could never afford it without a loan (or a winning lotto ticket), but with your reverse mortgage covering 52% ($202,800) now you can use $187,200 of your money to buy a home worth nearly twice as much as you could have purchased in cash.

Even better: the Reverse Mortgage for Purchase works just like a normal Reverse Mortgage. You retain the title to the home, and the loan does not come due until the last borrower leaves the home. The loan is non-recourse, so the bank can never come after you, your heirs or your estate regardless of what happens in the housing market.

You got everything that you set out to accomplish: you found a home that…

  • Suits your family’s needs,
  • Is in the right neighborhood,
  • Requires NO monthly mortgage payments,
  • And was within reach of your original budget!

You got everything you were looking for with the help of a reverse mortgage!

Look around you for a moment, and try to see the nooks and crannies of your home in a new light. Would you like to spend your future in a home that is better suited to your needs? If so, call ARAMCO Financial at (760) 438 – 2552 to see if a Reverse Mortgage for Purchase is right for you. Or sign up for our free educational workshop at www.ARAMCO.biz.

Don’t just downsize, right-size with a reverse mortgage!

Topics: Reverse Mortgage, HECM, home prices, home purchase, San Diego, purchase, Price, Reverse Mortgage for Purchase, Home Purchasing, HECM for Purchase

ARAMCO Report - Thursday April 9, 2015

Posted by The Aramco Group on Thu, Apr 9, 2015 @ 14:04 PM

San Diego Homes are Moving Quickly

San Diego is the 10th fastest housing market in the country with a median of 43 days between listing and sale according to the National Association of Realtors. The median amount of time nationwide is currently 89 days — 13 percent lower than a year ago. However, the median sale price in San Diego County was $39,000 less than the median list price as of February, 2015 according to the Zillow Home Value Index.  Meanwhile, it seems that more individual home-buyers are re-entering the housing market. Cash home sales are down nationally for the 25th month in a row, and since the majority of cash sales are by investors speculating in the real estate market a decline in cash sales reflects individual home buyers re-entering as home prices increase. According to CoreLogic, cash sales comprised 38.9 percent of all housing transactions in January 2015. That is compared to the 25 percent share of total home sales that were conducted in cash prior to the housing crisis.

Current conforming no point 30 year fixed mortgage rates average 3.75 percent while 15-year rates average 3.0 percent.

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, home buying, home purchase, homeowners, Housing Market, 30 year fixed rates, homebuyers, homeownership, housing recovery

ARAMCO Report -Monday September 29, 2014

Posted by Mehran Aram on Mon, Sep 29, 2014 @ 17:09 PM

August pending home sales were down 1% from July, further evidence of an uneven housing recovery. This according to the National Association of Realtors which regularly reports on home purchases under contract which have not closed escrow yet. Bond yields were slightly lower on this news and other data reflecting tame inflation and in reaction to recent weakness in stocks. Conforming no point 30 year fixed mortgage rates average 4 1/4% with 15 year rates closer to 3 3/8ths.

And now for something completely different: Did you know that since 1945 all British tanks come equipped with tea making facilities?

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

Topics: Reverse Mortgage, and now for something completely different, home purchase, bonds, tanks, tea, 30 year fixed rates, Bond yields, National Association of Realtors, Housing, August, British, escrow

ARAMCO Report -Monday September 22, 2014

Posted by Mehran Aram on Mon, Sep 22, 2014 @ 17:09 PM

Weaker than expected economic data and concerns about China’s economic outlook was supportive of the bond market. Existing home sales fell 1.8% in August and year over year were down 5.3%. And the Chicago Fed’s National Activity index also fell in August. Meanwhile higher level of student debt is expected to reduce U.S. home sales by around 8% this year. Conforming no point 30 year fixed mortgage rates average 4 1/4% with 15 year rates closer to 3 3/8ths.

And now for something completely different:Did you know that a book borrowed by George Washington in 1789 was marked as overdue for 221 years? It was returned in 2010 and the $300,000 in late fees were waived.

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

Topics: home sales, Reverse Mortgage, Aramco Report, home purchase, George Washington, bond market, China, 30 year fixed rates, Library, Chicago Fed's National Activity, economic data, refinance

ARAMCO Report -Friday September 19, 2014

Posted by Mehran Aram on Fri, Sep 19, 2014 @ 17:09 PM

According to 2nd quarter data from the Federal Reserve, growth in household owners’ equity rose by a more modest 1.7%, but up $4.7 trillion from the trough during the housing crisis equating to roughly $53,000 per property. At this pace it could take until early 2018 to fully recover all the equity. Meanwhile following a drop in bond yields on Friday, conforming no point 30 year fixed mortgage rates still average 4 1/4% with 15 year rates closer to 3 3/8ths.

And now for something completely different: In 1912, an orphanage in Paris held a raffle to raise money for a hospital. Hard to believe, but the raffle prizes were live babies!

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

Topics: Reverse Mortgage, and now for something completely different, home purchase, bonds, 30 year fixed rates, Bond yields, equity, Federal Reserve, Paris, refinance, Mortgage rates

ARAMCO Report - Thursday September 18, 2014

Posted by Mehran Aram on Thu, Sep 18, 2014 @ 17:09 PM

Construction of residential units surged to a post-recession high in July before falling last month, settling at an annual rate of 956,000 new units. Compared to a year ago up by 8% as more families entered the market. This according to the U.S. Department of Commerce. Mortgage rates were unchanged following the Fed’s commitment to keep short term interest rates low. Conforming no point 30 year fixed rates average 4 1/4% with 15 year rates closer to 3 3/8ths.

And now for something completely different: Did you know that the city of Chicago has the only post office in the world where you can drive your car through?

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: Reverse Mortgage, Aramco Report, and now for something completely different, home purchase, Chicago, residential construction, Interest Rates, 30 year fixed rates, refinance, U.S. Department of Commerce, Fed's, Mortgage rates, post office

ARAMCO Report - Wednesday September 17, 2014

Posted by Mehran Aram on Wed, Sep 17, 2014 @ 17:09 PM

As expected the Federal Reserve gave further assurance to the financial markets that the Fed will keep short term interest rates low for a “considerable time” after the bond buying program ends in October. And as for long term interest rates mortgage rates were unchanged with conforming no point 30 year fixed rates averaging 4 ¼% and 15 year rates closer to 3 3/8ths. Meanwhile home builder optimism in September rose to the highest level since 2005.

And now for something, completely different: Did you know that it takes about 63,000 trees to make the newsprint for the average Sunday edition of the New York Times? That’s a lot of trees!

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: Aramco Report, and now for something completely different, home purchase, bonds, New York Times, Sunday, trees, bond buying, 30 year fixed rates, Federal Reserve, Mortgage rates

ARAMCO Report - Friday September 12, 2014

Posted by Mehran Aram on Fri, Sep 12, 2014 @ 17:09 PM

Stronger than expected economic data put further upward pressure on mortgage rates. September consumer sentiment rose to the highest level since July of 2013, while August retail sales were the strongest since April. Conforming no point 30 year fixed mortgage rates average 4 1/4% with 15 year rates closer to 3 3/8ths. Meanwhile according to CoreLogic in Southern California the number of homes with reduced asking price has risen sharply in recent months as buyers gain more leverage.

And now for something completely different: Did you know that the fastest running bird is the Ostrich? Yes, it has been clocked at 60 miles per hour!

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: Reverse Mortgage, Aramco Report, and now for something completely different, home purchase, birds, CoreLogic, Southern California, 30 year fixed rates, retail sales, Ostrich, economic data, Mortgage rates, buyers

ARAMCO Report - Thursday September 11, 2014

Posted by Mehran Aram on Thu, Sep 11, 2014 @ 17:09 PM

Following several days of upward movement in treasury yields, mortgage rates are up by 1/8th of a %. Conforming no point 30 year fixed mortgage rates now average 4 1/4% with 15 year rates closer to 3 3/8ths. According to the Mortgage Bankers Association, the volume of loan applications for home purchase fell by 9% in August. Meanwhile RealtyTrac reported the first year over year uptick in foreclosure activity up 7% in August.

And now for something, completely different: Did you know that there is such a thing as a doggy disco in Italy? Yes, every year the owners gather and dance with their dogs!

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: Reverse Mortgage, Aramco Report, home purchase, RealtyTrac, Treasury, 30 year fixed rates, ARAMCO, Mortgage Bankers Association, Doggy Disco, Italy

ARAMCO Report - Tuesday September 9, 2014

Posted by Mehran Aram on Tue, Sep 9, 2014 @ 17:09 PM

Despite the lack of any market moving economic data, mortgage discount points rose by roughly a 1/4 point. This in reaction to a report from the San Francisco Federal reserves which indicates that investors have been underestimating how quickly the Fed can raise interest rates. Certainly, we have seen evidence of that over the years. For now conforming no point 30 year fixed mortgage rates average 4 1/8th with 15 year rates closer to 3 1/4%.

And now for something completely different: Did you know that a fortune cookie factory in Long Island City, New York produced 5 out of 6 winning Lottery numbers in 2005? A total of 110 players were winners.

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: and now for something completely different, home purchase, Winners, 30 year fixed rates, New York, economic data, Long Island City, fortune cookie, factory, Lottery, San Francisco Federal