Question: What is a Reverse Mortgage?
Answer: A "reverse mortgage" is a home loan that allows people 62 years and older to tap into the equity of their home, without making loan payments. A reverse mortgage provides cash payments to the homeowners, based on the equity value in the home. Homeowners can defer payments on the loan until they die or sell the home. Upon the owners death, their heirs either give up ownership to the home or must refinance the home to purchase the title from the reverse mortgage holder.
This option can be very beneficial to senior citizens who own their homes, but are on a limited income and need the income from the equity of their home to make ends meet. It can be a complicated instrument, so be sure to clearly understand ALL terms and conditions before making a decision.
Please contact me if you have any Wenatchee real estate questions.
Best Regards,
Erin Davison
Wenatchee Real Estate Agent
Free Search of entire Wenatchee MLS
Current Wenatchee real estate news, info and trends
Homes for sale in: Wenatchee, East Wenatchee, Malaga,
Cashmere, and Leavenworth, Washington
Wenatchee Real Estate: Q & A
Question: What is the difference between a mortgage "re-finance" and a "loan modification".
Answer:
A "refinance" is creating a completely new loan, and paying off the current loan. It is, essentially, just like getting the original loan. You have to go through the same process. This is most often done when interest rates decline and/or the loan amount falls below 80% of the property value. When the loan is higher than 80% of the value, it is necessary to pay "mortgage insurance", which is an additional cost you don't need to pay as the loan amount declines and the value increases. This is called "loan-to-value" ratio. The major drawback of a refinance is the "refinancing fees". Be careful that the refinancing fees don't outweigh the benefits of refinancing the mortgage. It can add thousands of dollars on to the loan balance, even if the payments are less.
A "loan modification" is rewiting the terms of your current loan. A lender may consider this option if your financial situation has changed and the mortgage payment is now creating a financial "hardship". The "hardship" factor is the key to a "loan modification", and must be documented. Factors such as a job loss or medical bills may be causing a financial hardship. In a loan modification, the lender may reduce the interest rate and/or increase the amount of time allowed to repay.
It is always helpful to talk to a professional loan specialist or housing counselor in order to get all the most current information and determine the best option for each individual situation.
Next up: What is a "reverse mortgage"?
Best Regards,
Erin Davidson
Wenatchee Real Estate Agent
Free Search of the entire Wenatchee MLS
Current Wenatchee real estate news, info and trends
Home for sale in: Wenatchee, East Wenatchee, Malaga,
Cashmere, and Leavenworth, Washington
Answer:
A "refinance" is creating a completely new loan, and paying off the current loan. It is, essentially, just like getting the original loan. You have to go through the same process. This is most often done when interest rates decline and/or the loan amount falls below 80% of the property value. When the loan is higher than 80% of the value, it is necessary to pay "mortgage insurance", which is an additional cost you don't need to pay as the loan amount declines and the value increases. This is called "loan-to-value" ratio. The major drawback of a refinance is the "refinancing fees". Be careful that the refinancing fees don't outweigh the benefits of refinancing the mortgage. It can add thousands of dollars on to the loan balance, even if the payments are less.
A "loan modification" is rewiting the terms of your current loan. A lender may consider this option if your financial situation has changed and the mortgage payment is now creating a financial "hardship". The "hardship" factor is the key to a "loan modification", and must be documented. Factors such as a job loss or medical bills may be causing a financial hardship. In a loan modification, the lender may reduce the interest rate and/or increase the amount of time allowed to repay.
It is always helpful to talk to a professional loan specialist or housing counselor in order to get all the most current information and determine the best option for each individual situation.
Next up: What is a "reverse mortgage"?
Best Regards,
Erin Davidson
Wenatchee Real Estate Agent
Free Search of the entire Wenatchee MLS
Current Wenatchee real estate news, info and trends
Home for sale in: Wenatchee, East Wenatchee, Malaga,
Cashmere, and Leavenworth, Washington
Wenatchee Real Estate: September 2014 Report
Onward and upward...
Here is a link to the comprehensive Wenatchee housing market report for September 2014 (which reflects activity for August).
As you review the report for monthly and year-to-date numbers, you will find YTD numbers lagging, but current numbers more positive. The number of homes being sold and the price average is increasing.
The majority of activity is in the under $300,000 price range, where there is a 2.5 to 3 month supply of inventory. As the price increases, the indicated selling time increases too. In other words, higher priced homes are taking longer to sell. The higher the price, the longer the average selling period.
If you have any questions about the current Wenatchee real estate market, please contact me. I will be happy to answer your questions.
Best Regards,
Erin Davidson
Wenatchee Real Estate Agent
Free search of the entire Wenatchee real estate MLS
Current Wenatchee real estate news, info and trends
Homes for sale in: Wenatchee, East Wenatchee, Malaga,
Cashmere, and Leavenworth
Here is a link to the comprehensive Wenatchee housing market report for September 2014 (which reflects activity for August).
As you review the report for monthly and year-to-date numbers, you will find YTD numbers lagging, but current numbers more positive. The number of homes being sold and the price average is increasing.
The majority of activity is in the under $300,000 price range, where there is a 2.5 to 3 month supply of inventory. As the price increases, the indicated selling time increases too. In other words, higher priced homes are taking longer to sell. The higher the price, the longer the average selling period.
If you have any questions about the current Wenatchee real estate market, please contact me. I will be happy to answer your questions.
Best Regards,
Erin Davidson
Wenatchee Real Estate Agent
Free search of the entire Wenatchee real estate MLS
Current Wenatchee real estate news, info and trends
Homes for sale in: Wenatchee, East Wenatchee, Malaga,
Cashmere, and Leavenworth
Interested in Wenatchee Investment Real Estate?
For those of you interested in Wenatchee investment real estate, here are a couple of great information resources. Perhaps, I have mentioned them before.
Mr. Landlord, forms and tons of other resources for landlords.
Bigger Pockets, an online real estate magazine. There are usually several articles posted per day by practicing real estate investors.
There are numerous investment options in Wenatchee. I am always willing to assist you.
Best Regards,
Erin Davidson
Wenatchee Real Estate Agent
Free search of the entire Wenatchee real estate MLS
Current Wenatchee real estate news, info and trends
Homes for sale in: Wenatchee, East Wenatchee, Malaga,
Cashmere, and Leavenworth
Mr. Landlord, forms and tons of other resources for landlords.
Bigger Pockets, an online real estate magazine. There are usually several articles posted per day by practicing real estate investors.
There are numerous investment options in Wenatchee. I am always willing to assist you.
Best Regards,
Erin Davidson
Wenatchee Real Estate Agent
Free search of the entire Wenatchee real estate MLS
Current Wenatchee real estate news, info and trends
Homes for sale in: Wenatchee, East Wenatchee, Malaga,
Cashmere, and Leavenworth
Free Mortgage Calculator
Have you ever been curious about how much your monthly payment would be on a loan, whether for a home or something else? Bankrate.com has an easy to use loan calculator where you can play with various scenarios.
Keep in mind, if you are considering the purchase of a home, do NOT apply for any other credit until you consult with a professional loan officer! Even an inquiry on your credit can negatively affect your credit score.
Best Regards,
Erin Davidson
Wenatchee Real Estate Agent
Free Search of the entire Wenatchee MLS
Current Wenatchee real estate news, info and trends
Homes for sale in: Wenatchee, East Wenatchee, Malaga,
Cashmere, and Leavenworth
Keep in mind, if you are considering the purchase of a home, do NOT apply for any other credit until you consult with a professional loan officer! Even an inquiry on your credit can negatively affect your credit score.
Best Regards,
Erin Davidson
Wenatchee Real Estate Agent
Free Search of the entire Wenatchee MLS
Current Wenatchee real estate news, info and trends
Homes for sale in: Wenatchee, East Wenatchee, Malaga,
Cashmere, and Leavenworth
Wenatchee Real Estate: July 2014 Statistics
The July issue of the Pacific Appraisal home sales statistics indicates the trend from the first half of the year has changed! Although the overall MLS market area (including outlying areas) is down, the local Wenatchee market area is showing recovery.
Here is a link to the January - June 2014 statistics, as provided by Pacific Appraisal Associates last month. This report includes Month-to-Month and Year-to-date information. It is interesting to compare both.
Unlike the first half of the year, sales volume AND prices are now increasing. New listing data indicates there are still fewer homes coming onto the market than a year ago at this time. This would indicate an increase in prices will probably continue. Because the inventory of homes is less robust than a year ago, it is beneficial to work with your favorite REALTOR to keep you notified as new home choices come onto the market.
I am always happy to answer any of your real estate questions.
Best Regards,
Erin Davidson
Wenatchee real estate agent
Free search of the entire Wenatchee real estate MLS
Current Wenatchee real estate news, info and trends
Wenatchee homes, East Wenatchee homes, Malaga homes,
Cashmere homes, and Leavenworth homes.
Wenatchee, Washington: A Historical Report of the early People and Buildings
I recently came across this very interesting article on the history of Wenatchee and thought you might enjoy reading it too. The objective of the project (and 2007 report) was to "identify intact, historically significant buildings, objects, sites, structures, and places in downtown Wenatchee".
It discusses some history of the original Native Americans in the area and eventual settlement and growth, closely tied to the arrival of the railroad in 1892
It includes lots of old pictures and a list of historic buildings.
Enjoy...
Erin Davidson
Wenatchee Real Estate Agent
Free Search of the entire Wenatchee real estate MLS
Current Wenatchee real estate news, info and trends
Homes for sale in: Wenatchee, East Wenatchee, Malaga,
Cashmere, and Leavenworth
It discusses some history of the original Native Americans in the area and eventual settlement and growth, closely tied to the arrival of the railroad in 1892
It includes lots of old pictures and a list of historic buildings.
Enjoy...
Erin Davidson
Wenatchee Real Estate Agent
Free Search of the entire Wenatchee real estate MLS
Current Wenatchee real estate news, info and trends
Homes for sale in: Wenatchee, East Wenatchee, Malaga,
Cashmere, and Leavenworth
Subscribe to:
Posts (Atom)
