ARAMCO Report - The Mother of ALL Mortgage Blogs!

ARAMCO Report - Monday May 11, 2015

Posted by The Aramco Group on Mon, May 11, 2015 @ 13:05 PM

San Diego’s vacancy rate must be incredibly low

Residential rents have gone up, renters will pay more, and—paradoxically—investments in real estate are down. How? The vacancy rate must be very low. The San Diego County Apartment Association (SDCAA) will conduct its next survey in June.

Rental Rates are up 5.4 percent in San Diego and nationally compared to one year before according to and the National Association of Realtors, respectively. In San Diego that means that rent in March 2015 was on average $2,339/month up from $2,218/ month in March 2014. 

At the same time, released a survey during the week of May 4, 2015 that 55 percent of millennials would pay $150 more per month for their rent. That would equal to another 6.4 percent increase to the current prices cited above for San Diego.

However, the National Association of Realtors reports that the number of real estate sales made to investors is down to 14 percent in April 2015 from 20 percent at the same time last year.

Potential homebuyers looking for rest from the rental market will find conforming no point 30-year fixed mortgage rates average 3.875 meanwhile 15-year rates are closer to 3.125 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.

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Topics: real estate, investing, 30 year fixed rates, National Association of Realtors, Vacancy Rate, Investors, Rent, Renters

Is Now The Best Time to Buy a Home? – Home Loan Rates

Posted by The Aramco Group on Tue, Aug 28, 2012 @ 15:08 PM

Being so deeply entrenched in California real estate finance, I am asked daily if now is a good time to buy a home or investment property. And whether this question arises on a TV or radio interview or a one-on-one meeting with a client in the office, I have the same response for everyone, “I’ve never in all my life seen a better time to buy as much real estate as possible.” With a combination of low sales prices (down 42% since their peak in 2006), high inventory, record-low home loan rates, and a strong rental market, it is a fabulous time to grow your real estate portfolio or buy your first home.

After numerous reports from multiple sources including a recent California Association of Realtors report which showed a 6% increase in single family home sales since June 2011, it’s safe to say the housing market has begun a rebound, however sluggish it may be. Will home prices return to the levels seen in 2006 and 2007? Yes, but probably not as quickly as we would all like. One major factor which will be driving up home prices though is future inventory. While today’s high inventory due to unemployment, underemployment, uncertainty and the shock of the Great Recession is lending to low home prices, I believe we will see a major shift in inventory within a few years.

Home Supply Aramco Mortgage

Since 2008, housing permits for both single and multi-family homes have been nearly stagnant as one might expect, due to the economic downturn we've experienced over the last few years. But while the economy has slowed down,the number of college studnets graduating and getting jobs, families moving to California and first-time home buyers continue to rise at extremely high levels. Thus, the simple economic laws of supply and demand should take over, in which construction will be a couple years behind the demand for homes and a fairly serious shortage of homes will occur due to low supply. This lack of supply should boost home prices, and incentivize home builders to increase home devoloping, until the demand and supply are once again balanced.

But even if you wanted to take an ultra-conservative prospective on the housing market and assume 0% appreciation over the next few years, now is still one of the best times in our nation’s history to purchase real estate. The Housing Affordability Index which measures the affordability of home ownership based on median home prices, median income, and average mortgage interest rates, is currently at its highest level since record keeping began in 1970. Record-low long term interest rates are one of the catalysts driving this rebound, making homeownership extremely affordable.  But in addition to rock bottom rates and low prices, the current rental market should attract many more investors into real estate.  Due to uncertainty and a depressed level of income, many families have elected to rent instead of buy. Apartment vacancies are falling monthly, while effective rent has been rising in most parts of the state for 10 consecutive quarters. This combination of low interest rates and high rents are allowing many investors to make a monthly profit even if their properties show zero appreciation.

As you can see, barring any major double-dip recession, or shock to the economy, it seems as though the California housing market is poised for a slow but much anticipated recovery. The perfect combination of low interest rates, deflated prices, and high rents lends to an extremely favorable home buying environment. My final word of advice is to avoid waiting for home prices or interest rates to creep down even lower, as it is much more likely that both rates and prices spike rather than go down any further. 

Mehran Aram

President/CEO The Aramco Group

Topics: home prices, home buying, financial recovery, The Aramco Group, Mehran Aram, California, Aramco Mortgage, home ownership, investing, Aramco Properties, low 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 - The New Senior "Investment" Strategy? (Part1)

Posted by The Aramco Group on Fri, May 18, 2012 @ 11:05 AM

What’s considered a good return on investment these days? Even when the stock market was a reliable method of growing ones savings, what was a personal investor hoping for? A return of 5%, 10%, 50% if they hit the jackpot, and this only after weeks, months, even years of up and down, rollercoaster, heartbreak and hysteria. How about real estate? We’ve all been told time and time again to get into real estate, use the power of leverage and build a retirement for years to come. While real estate can be a fantastic long term investment, these days there’s really very little expectations of property appreciation. Even in the fabulous housing market we saw in the early 2000s when housing prices skyrocketed north, these profits were still cut into by loan payments, property taxes, mairetirement strategyntenance costs, and the normal headache of property ownership and renting.


So, as a senior who is risk averse due to a fixed or limited income, what is the best investment you can make? Allow me to explain to you why exactly I believe the best “investment” is in yourself, in a reverse mortgage. To be fair to the economists and financial gurus reading this blog, the reverse mortgage is not a tangible investment in its commonly referred to definition in which you invest in a company, tangible item or investment tool. It is simply a product that allows one to access what they already own, their equity. The average cost of a reverse mortgage is somewhere around $13,000, seems high right? Well yes, maybe at first that number seems quite high, and there are programs such as the HECM Saver, with costs closer to $2,000, but let’s look at the average cash received (return on investment) from a reverse mortgage. Over the last few years Aramco Financial has put on average about $150,000 cash in the hands of our reverse mortgage clients. Now how does that $13,000 look? Let’s do the math. An average "investment"(cost) of $13,000 and an average return of $150,000, that’s a return on “investment” of over 1,150%!


Stop by next week to read the conclusion of this article, and to find out even more about the benefits a reverse mortgage can have on your retirement.

Or call us today at (877) 700-0942

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

Buy A House Now, But....

Posted by The Aramco Group on Thu, Mar 1, 2012 @ 11:03 AM

....don't take my word for it. Take Warren Buffett's.

Buffett, in case you don't know who he is, is the chairman and CEO of the Berkshire Hathaway holding company. His nickname is "the Oracle of Omaha," and for good reason. His business and investing skills are unparalleled. He is consistently ranked as one of the richest people in the world; indeed, he was the wealthiest person on the planet in 2008, but has since "dipped" to No. 3.

Earlier this week Buffett appeared on CNBC's Squawk Box, a three-hour marathon session that he does once a year. During the interview and question/answer period, he indicated that, in his opinion, single-family homes are an excellent investment.

Buffett said that he would "buy up a couple hundred thousand" single-family homes right now if it were practical to do so. It's not, as he pointed out, because the management costs would be too difficult to manage. Unlike an apartment building, where you have a relatively large number of residences literally under one roof and sharing many common infrastructure elements, such as water and walls, single-family homes stand alone, and each must be cared for, managed and maintained individually.

I suppose that when you're worth $39 billion you think in terms of large numbers of investment units. It's a safe bet that no one reading this can buy 1,000, 100, or even 10 single-family homes (if you can, please contact me ASAP to manage your mortgages!)

But perhaps you can buy one house, either to live in or as an investment. The point here is that if you can, now is the time to do it. There is a wealth of inventory on the market and rates are as low as they have ever been.

If you purchase a single-family house now at these rates and hold it for a long period of time, Buffett says that is an even better investment than stocks. The reason is that the real estate will appreciate in value and rates won't stay where they are. They will either go up or go down (not likely simply because they are so low already).

So you buy a house today with a 30-year mortgage and if rates do go down you refinance and pay less. If they go up, you keep your mortgage and make money because your money is worth more and working for you.

If it's good enough for Buffett, it's good enough for us. We'd love to help you buy that house, so please call, email or stop by our Carlsbad offices and let's meet and see how we can get you into an incredible mortgage.

Topics: home prices, home buying, Aramco Mortgage, investing