Old Town Mortgage

03/23/2023

Got questions about a Reverse Mortgage and how it might work for you? Give us a call -(626) 303 7777

08/15/2022

Have questions about how a Reverse Mortgage can help you find time for what matters? Give us a call (626) 303 7777. We'd love to hear from you.

06/29/2022

Here's a sneak peek at our July Monrovia Living Article.

Modern Retirement Survey

Americans work their entire careers to attain a comfortable retirement, but as the economy continues to shift, financial pressures have made that goal difficult to attain for the modern generation of retirees. Inflation and the cost of living have left many older Americans worried or upset about their post-career finances.

To learn exactly how modern-day seniors are feeling about their retirement, AAG, a national leader in retirement solutions, conducted the Modern Retirement Survey in December 2021 with more than 1,500 senior homeowners , aged 60-75, across the United States. Here are some of the findings:

Inflation is a major cause of concern for seniors. Two-thirds of older Americans are worried that economic inflation will have a negative impact on their retirement:
• 66% of seniors answered “Yes,”, they are worried inflation will impact their retirement. Retirement is more expensive than most seniors had planned for.
• 53% of seniors answered “Yes,”, the cost of living is higher in retirement than they expected.
• 36% of seniors answered “Less”, when asked if they have more or less money than they believed they would have at this point in their lives.

Nearly one third of older Americans believe they will outlive their money:
• 29% of seniors answered “Yes”, they feel they will outlive their retirement funds. Many older Americans are in need of additional funds to secure an adequate retirement. More than one third of older Americans say they need to increase their cash flow in order to live comfortably.
• 37% of seniors answered “Yes”, they feel like they need to increase their monthly cash flow.

Nearly 40% of today’s seniors believe their generation had a harder time achieving retirement than their parents did.
• 39% of seniors answered “Yes”, they feel the last generation had an easier time retiring than they did.
• 81% of seniors answered “No”, they do not feel the next generation will be able to retire comfortably.
• 28% of seniors answered “No”, their retirement plan did not work out as planned.

Affording retirement is hardest on divorced and widowed women. Nearly two-thirds of widowed or divorced women say that the cost of living is higher than they had expected it to be.
• 61% of widowed or divorced female seniors answered “Yes”, the cost of living is higher in retirement than they had expected.
• 72% of widowed or divorced female seniors answered “Yes”, they are worried inflation will impact their retirement.

Reverse Mortgages provide one solution toward increasing cash flow during retirement. While Reverse Mortgages are financially rewarding, they are also complicated. I’ll take the time to explain how a Reverse Mortgage works, help you determine the best funding strategy for your unique situation and walk you through the process with personal service along the way. Call (626) 303-7777 and together we’ll find the right solution.
Source: AAG.com/retirement-survey-2022

Americans work their entire careers to attain a comfortable retirement, but as the economy continues to shift, financial pressures have made that goal difficult to attain for the modern generation of retirees. Inflation and the cost of living have left many older Americans worried or upset about the...

06/06/2022

HOME SWEET HOME
Like Dorothy of Kansas from the “Wizard of Oz,” there’s no place like home for millions of older Americans. According to AARP, about 90% of people age 65 and over would prefer to stay in their own homes as they age.

Unfortunately, this aspiration often bumps into two real-life challenges. The first challenge is that one’s home likely needs to be renovated to accommodate their changing needs. The second challenge has more to do with nature itself. The current life expectancy for Americans in 2021 is 79 years. While not everyone is fortunate enough to reach 79, many Americans outlive that number by 10 years and some by more than 20 years. How does one plan for so many possibilities?

These two challenges aren’t insurmountable. Indeed, with proper planning and ex*****on, a Reverse Mortgage can enable you to age where you feel most secure and comfortable.

A Reverse Mortgage loan is a flexible financing tool that allows Americans, 62 and older, to convert some of their home equity into tax-free cash that can be used for virtually any purpose.

Once your existing mortgage is paid off with the proceeds from your Reverse Mortgage, the remaining tax-free proceeds are paid to you in a payment plan of your choice, which can include a Reverse Mortgage line of credit. The Reverse Mortgage line of credit is the most popular payout option because it is also the most flexible. You are charged interest only on the portion you use, making it an outstanding reserve fund for fixing up your home, paying for in-home care, or addressing other financial concerns that invariably arise in retirement.

Indeed, a Reverse Mortgage line of credit is so versatile that many older Americans prefer it to a traditional home equity line of credit (HELOC) once they learn its features.
You may never need to use your Reverse Mortgage line of credit, but it’s there for you just in case, giving you even more financial firepower for home modifications, in-home care, and much, much more.

Over the years, both you and the home that owns your heart will likely require a “maintenance” plan for optimal operation and longevity. Currently, you may not be able to foresee everything in the plan, but just having it in place may give you peace of mind that money just can’t buy.

While Reverse Mortgages are financially rewarding, they are also complicated. I’ll take the time to explain how a Reverse Mortgage works, help you determine the best funding stragegy for your unique situation and walk you through the process with personal service along the way. Call (626) 303 7777 and together we’ll find the right solution.

03/29/2022

Here's a sneak peek of our April 2022 Monrovia Living article! Give us a call if we can help. (626) 303 7777

Introducing the HomeSafe Jumbo Reverse Mortgage
For high value, $1,000,000 + properties

From the stability it provides to the memories it holds, your home provides many wonderful advantages, including the wealth it creates. And if you’re 62 or older, you can now tap some of that wealth with a HomeSafe Reverse Mortgage loan.

What makes a Jumbo Reverse Mortgage such a standout is how much more money it allows homeowners to access – up to $4 million on homes valued up to $10 million. That’s more than five times the equity than can be accessed with a traditional Reverse Mortgage.

Home equity is usually the largest asset for the average retiree. Most people think a Reverse Mortgage is a product for the end of retirement, when the senior is out of other assets. But research has shown that in many cases, it is far better to use Reverse Mortgages early in retirement to reduce market risks and help improve cash flow.

Enhance your home, strengthen your investment portfolio, purchase a second property, or even create a legacy or college fund for your children and grandchildren.
• You own and retain title to your home
• Loan amounts up to $4 million
• Homes valued up to $10 million quality
• NO monthly mortgage payments (you’re responsible for home maintenance and the payment of property taxes and homeowners insurance
• Tax-free loan proceeds
• Social security Medicare benefits not impacted
• Non-recourse loan guarantees neither you nor your heirs will ever owe more than the value of the home
• After the loan is repaid, any remaining equity belongs to you or your heirs.

When used strategically and responsibly, your Reverse Mortgage can not only preserve, but also expand the longevity of your investments in any kind of market:
• Up market. Tap into your home equity for expenses rather than sell well-performing assets
• Down market. If your investments get caught up in a down cycle, consider using funds from your jumbo loan until the market rebounds
• Tax reduction tool. Avoid a potential large capital gains tax that a home sale could trigger. Rather, stay in place and tap your home equity using the jumbo loan.

I’m located in Monrovia, have done business locally for more than 25 years, and am a proud member of the Monrovia Rotary Club.
While Reverse Mortgages are financially rewarding, they are also complicated. I’ll happily take the time with you and your family to explain how a Reverse mortgage works, help you figure out the best funding strategy for your unique situation and walk you through the process with personal service along the way.
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03/01/2022

Check out our March 2022 article in Monrovia Living. We detail a lot of the Reverse Mortgages we've been happy with help with in the past few years. We'd be happy to hear from you if you have any questions and we can be of any help. (626) 303 7777

Reverse Mortgage Scenarios: Which one works for you?

In the June of 2019 edition of Monrovia Living we described some of the Reverse Mortgages that we’ve done, and how they’ve positively impacted our customers.

We’re pleased by the Reverse Mortgages we’ve successfully closed since then; even still we are surprised by the flexibility of how a Reverse Mortgage can be structured, the different scenarios where a Reverse Mortgage is appropriate, and how we’ve been able to help our clients.

Homeowner #1: A long-time resident of Monrovia, our customer was a disabled senior with a paid-off mortgage and a desire to age-in-place at home with the help of in-home health care providers. At a cost of $5,000 per month, her Social Security income was not nearly enough to provide the care she needed.

SOLUTION: Our customer obtained a Reverse Mortgage with an initial disbursement and an on-going monthly check. She had the adequate income to pay for the help she needed, and her wish to spend the rest of her life in the home where she had lived was fulfilled.

Homeowner #2: This scenario is up close and personal; in early 2020 my wife and I arranged for a Reverse Mortgage on our Monrovia home. With life becoming increasingly uncertain, we’re enjoying financial security with no monthly mortgage payment.
My wife is from Wisconsin and remaining in California is a matter of marital constancy. We now enjoy California weather even more with a vastly improved cash flow situation, improved quality of life, and beautiful mountain views from our recently added-on sunroom.

Homeowner #3: A widow in a nearby town had a monthly mortgage payment of $1,940. Her income was only $2,164 per month, and her savings were being quickly depleted.

SOLUTION: Her Reverse Mortgage improved her cash flow by paying off her mortgage, and she has a line of credit available for future expenses. When we closed her loan, she was down to $500 in savings.

Homeowner #4: A single woman in a nearby mountain town with a mortgage payment well over half of her income. With a knee operation pending, her major concern was cash flow.

SOLUTION: By obtaining a Reverse Mortgage and eliminating her mortgage payment, she more than doubled her monthly cash flow. We have since refinanced this client’s Reverse Mortgage, and thanks to increasing property values, we were able to provide her with additional funds.

Homeowner #5: A local couple had their home nearly paid off. They wanted to do a major remodel to create the perfect forever home, and chose to “let the equity in the home pay for the expense”, rather than sacrifice savings or having monthly loan payments.

SOLUTION: Our clients obtained a Reverse Mortgage, which paid off their small mortgage, replenished their savings account and made available a sizeable line of credit.

Homeowners #6: A senior couple here in Monrovia sold their home and netted approximately $550,000, with the plan to downsize and move closer to family.

SOLUTION: Rather than spend almost all of their proceeds from the sale of their Monrovia home on a home out of the area, they put 50% down and financed the balance with a Reverse Mortgage. NO mortgage payments AND half of their proceeds deposited in the bank.

While Reverse Mortgages are financially rewarding, they are also complicated. I’ll happily take the time with you and your family to explain how a Reverse Mortgage works, help you figure out the best funding strategy for your unique situation and walk you through the process with personal service along the way.

I’m located in Monrovia, have done business locally for more than 25 years, and am a proud member of the Monrovia Rotary Club.
Give me a call – I’m looking forward to hearing from you and learning about your situation; together we’ll find the right solution. (626) 303 7777

02/14/2022

Happy Valentines Day from your friends at Old Town Mortgage!

01/29/2022

Get a sneak preview of our Feb 2022 article in Monrovia Living:

Have you completed your 2021 tax returns? Wouldn’t it be nice to increase your income, without increasing your income taxes? A Reverse Mortgage might be the answer you’re looking for.

Home Equity: A retirement asset to consider

When calculating your retirement assets, have you included your home equity? With a Reverse Mortgage you can maximize your retirement income by tapping into your home equity while maintaining home ownership and with no repayment requirements.

Features of a Reverse Mortgage include
• No capital gains or income tax on loan distributions
• No repayment requirements
• You remain the owner of your home. Your name stays on the title
• Supplement income to allow other assets to grow in value

Loan proceeds can be used as you choose to fund a more comfortable and secure retirement:
• Improve your cash flow with paid off existing mortgage debt.
• Pay for home improvements or modify your home with the plan to “age in place”
• Cover medical or in-home care expenses
• Refinance an existing reverse mortgage to access a larger pool of funds

Reverse Mortgages are especially helpful for those with investment accounts. Rather than withdraw funds from your income-generating investments, use your home equity to free up funds with no capital gains or income tax liability.

Home equity is a powerful retirement asset. Do you qualify?
• Age 62 or older
• Own your home and occupy your home as your primary residence
• Meet loan to value requirements

What’s your retirement situation? After helping several local seniors through the Reverse Mortgage process and seeing the positive effects firsthand, I obtained one for my wife and myself. Having it in place gave us the ability to finalize our retirement plans and added financial security in these uncertain times. I’m located in Monrovia, have done business locally for more than 25 years, and am a proud member of the Monrovia Rotary Club.

While Reverse Mortgages are financially rewarding, they are also complicated. I’ll happily take the time with you and your family to explain how a Reverse mortgage works, help you figure out the best funding strategy for your unique situation and walk you through the process with personal service along the way.

Give us a call - we look forward to hearing from you! (626) 303 7777

01/04/2022

Happy New Year! Check out our January 2022 article in Monrovia Living, especially if you or a loved one is considering a move this year.

Home is where the heart longs to be

Has more time at home inspired talk around your dinner table of your grown children buying their first home? A California lifestyle that includes living in an apartment with no yard, or limited work space, isn’t what it used to be. And with remote working becoming more popular, there are opportunities to buy a home a little farther afield.

Buying a first home can appear daunting – between down payments, credit scores, mortgage rates and gathering all the necessary information, it’s easy to feel overwhelmed. One call to me at (626) 303 7777 can get them on their way.

PRE-APPROVAL
Since a pre-approval is needed before putting an offer on a home, or in some cases getting the attention of a Realtor, the very beginning of the home shopping adventure is the best time to sit down with a mortgage broker. Your mortgage broker will scrutinize financial background, debts, income and assets, to determine the size of the monthly mortgage payment that is realistic and affordable. The “comfort level” of the mortgage payment is a personal factor that should also be taken into account.
How much of a monthly payment can be afforded, along with down payment (more on that later) and the all important credit score, aids the mortgage broker in determining the size of mortgage a pre-approval can be issued for, which in turn helps target homes within a price range.

CREDIT SCORE
The three-digit credit score is a summary of your credit report, a detailed document outlining how well past debts like credit cards and college student loans have been paid off. The higher the credit score, the more favorable the mortgage terms. Home loan credit reports are more in-depth and use three credit scores, unlike the online free reports. The online credit reports are actually lead generators for other businesses.

Remember that having a credit report run multiple times will have a negative impact on the credit score, so don’t rely on the app on your phone. If there are glitches or late pays bringing the credit score down, now is the time to get those issues resolved. Your loan broker will be able to point out any problems and offer advice.
DOWN PAYMENT

Ideally, the down payment should be 20% of the price of the home being purchased. But there are loan programs available for down payments of 10%, and even a low as 5%. And you’ll be happy to hear that the down payment can be a “gift” from a parent, loved one or any generous soul. Be sure to consult your tax professional regarding the amount of “gift funds” that can be provided tax free.
Buying a home has always been a challenge, but there are professionals that are happy to assist. And we’d be happy to hear from you or your family if a home purchase is being considered.

I’m located in Monrovia, have done business locally for more than 25 years, and am a proud member of the Monrovia Rotary Club. Give me a call – I’m looking forward to hearing from you and learning about your situation; together we’ll find the right solution. (626) 303 7777

12/22/2021

To you and yours, we wish you all the best of the season

11/05/2021

Home values are up … and so are loan limits!

Maximum loan limits have increased! Monrovia, along with much of Southern California, is considered a “high value area” (bet you knew that already!) The new high value, conforming loan for a one-unity property is $937,500.

What does it mean for you?

With home prices on the rise, the maximum loan limit also increasing allows home buyers to borrow more for their home purchase. That’s good news for buyers and sellers.

And it’s good news if you’re considering refinancing your existing mortgage. And with rates so low, now is a great time to take a look at your mortgage to make sure it’s still the best mortgage for you. With higher borrowing limits, now is a good time to consider a “cash out” refinance. You can use the cash for home improvements or to pay off student loans and consumer debt.

Higher home limits is even better news if you’re considering a Reverse Mortgage. These higher limits mean borrowers can qualify for higher amounts to pay off their existing mortgage, get cash out, or set up a line of credit for the future.

No matter your home borrowing need, we’d be happy to hear from you. Give us a call (626) 303 7777