Did you know you can use a reverse mortgage to purchase a home? The American Recovery and Reinvestment Act of 2009 (The Stimulus Package) includes a feature for seniors age 62 and over: the availability of reverse mortgages on home purchase transactions.
An example is Meghan who recently sold her home for $600,000, netting approximately $515,000. She had originally wanted to purchase a place for $450,000, which would leave her a cash reserve of $65,000. However, what she really liked cost $550,000. She is purchasing the property for $550,000 with $300,000 cash and a $250,000 reverse mortgage. She is very excited because this will leave her with $215,000 in cash reserves. Yet, because it is a reverse mortgage she will not have to make any payments until her home is sold or she no longer uses it as her primary residence.
As an extra bonus for Meghan, because her purchase price of $550,000 is less than her sales price of $600,000, she will be able to transfer her property taxes to her new home. She had lived in her home for over 30 years so her property taxes are quite low.
If you know of anyone who might be in this situation, please suggest that they consult their tax advisor and talk to a Senior Equity Reverse Mortgage specialist.
Published by:
Carla Griffin, Broker, B & A Realtors
Friday, February 27, 2009
Tuesday, February 17, 2009
Four Ways the Stimulas Plan Benefits Home Owners and Buyers
Press Release
February 17, 2009 - CMPS Institute
There are four primary sections of the economic stimulus plan that will benefit home owners and buyers,” said Gibran Nicholas, Chairman of the CMPS Institute, an organization that certifies mortgage bankers and brokers.
Benefit #1 – Higher Reverse Mortgage Loan Limits (For the Seniors 62 and over)
The loan limits for FHA-insured reverse mortgages have been increased to $625,500 across the entire country – not just the higher cost areas. The previous limit was $417,000 across the country. “This is especially important because the FHA program is virtually the only game in town as private and jumbo reverse mortgage programs have nearly all evaporated,” Nicholas said.
This coincides with another "little-known change" in the reverse mortgage arena: the availability of reverse mortgages on home purchase transactions. “This is a fantastic opportunity for senior citizens to buy a new home and live mortgage payment-free without having to wait for their old home to sell,” Nicholas said. “Seniors could also use this strategy to buy a new home and turn the old home into a rental or otherwise wait for market conditions to improve before trying to sell the old home.”
Benefit #2 – Expansion of Home Improvement Tax Credit
“The tax credit for making energy efficient home improvements is now 30% of the cost of the improvements up to a maximum of $1500,” Nicholas said. “This means that if the improvements cost you $4,500, you would receive a tax refund of $1,500 when you file your tax returns.” Eligible improvements include energy efficient exterior doors and windows, insulation, heat pumps, furnaces, central air conditioners and water heaters. “Generally, most modern improvements like windows, furnaces, and air conditioners meet the necessary standards for energy efficiency,” Nicholas said. “If you’ve been holding off on making some of these improvements, now is a great time to get a move on it – especially with all the great deals being offered.”
Benefit #3 – Expansion of First-time Home Buyer Tax Credit
The tax credit available to first time home buyers was increased from $7,500 to $8,000 for homes purchased between January 1, 2009, and December 1, 2009. Also, the credit no longer needs to be paid back as long as the buyers live in the home without selling it for at least 3 years. “The previous version of the credit expired on July 1, 2009, and required home buyers to pay the funds back over a 15 year time frame,” Nicholas said.
There is one catch, however: if you bought the home in 2008, the credit remains $7,500, and it still needs to be paid back over a 15 year timeframe beginning in 2011when you file your 2010 returns.
Benefit #4 – $729,750 FHA and Conforming Loan Limits Restored in High Cost Areas
“The $729,750 maximum loan limit had been in force throughout 2008, but was reduced to $625,500 in 2009,” Nicholas said. “The economic stimulus plan restores the $729,750 maximum. This makes higher cost homes more affordable – especially in the coastal housing markets that tend to have higher than average home values.”
For further information on these Benefits, please contact your CPA, Reverse Mortgage Lender, or local Real Estate Broker.
February 17, 2009 - CMPS Institute
There are four primary sections of the economic stimulus plan that will benefit home owners and buyers,” said Gibran Nicholas, Chairman of the CMPS Institute, an organization that certifies mortgage bankers and brokers.
Benefit #1 – Higher Reverse Mortgage Loan Limits (For the Seniors 62 and over)
The loan limits for FHA-insured reverse mortgages have been increased to $625,500 across the entire country – not just the higher cost areas. The previous limit was $417,000 across the country. “This is especially important because the FHA program is virtually the only game in town as private and jumbo reverse mortgage programs have nearly all evaporated,” Nicholas said.
This coincides with another "little-known change" in the reverse mortgage arena: the availability of reverse mortgages on home purchase transactions. “This is a fantastic opportunity for senior citizens to buy a new home and live mortgage payment-free without having to wait for their old home to sell,” Nicholas said. “Seniors could also use this strategy to buy a new home and turn the old home into a rental or otherwise wait for market conditions to improve before trying to sell the old home.”
Benefit #2 – Expansion of Home Improvement Tax Credit
“The tax credit for making energy efficient home improvements is now 30% of the cost of the improvements up to a maximum of $1500,” Nicholas said. “This means that if the improvements cost you $4,500, you would receive a tax refund of $1,500 when you file your tax returns.” Eligible improvements include energy efficient exterior doors and windows, insulation, heat pumps, furnaces, central air conditioners and water heaters. “Generally, most modern improvements like windows, furnaces, and air conditioners meet the necessary standards for energy efficiency,” Nicholas said. “If you’ve been holding off on making some of these improvements, now is a great time to get a move on it – especially with all the great deals being offered.”
Benefit #3 – Expansion of First-time Home Buyer Tax Credit
The tax credit available to first time home buyers was increased from $7,500 to $8,000 for homes purchased between January 1, 2009, and December 1, 2009. Also, the credit no longer needs to be paid back as long as the buyers live in the home without selling it for at least 3 years. “The previous version of the credit expired on July 1, 2009, and required home buyers to pay the funds back over a 15 year time frame,” Nicholas said.
There is one catch, however: if you bought the home in 2008, the credit remains $7,500, and it still needs to be paid back over a 15 year timeframe beginning in 2011when you file your 2010 returns.
Benefit #4 – $729,750 FHA and Conforming Loan Limits Restored in High Cost Areas
“The $729,750 maximum loan limit had been in force throughout 2008, but was reduced to $625,500 in 2009,” Nicholas said. “The economic stimulus plan restores the $729,750 maximum. This makes higher cost homes more affordable – especially in the coastal housing markets that tend to have higher than average home values.”
For further information on these Benefits, please contact your CPA, Reverse Mortgage Lender, or local Real Estate Broker.
Saturday, February 14, 2009
Senate Passes Stimulus Package By 60 To 38 Vote
The following is directly from the President of the California Association of Realtors (http://www.car.org/), James Liptak (2/13/09):
Late this evening, the U.S. Senate passed the American Recovery and Reinvestment Act of 2009 by a 60 to 38 vote. Earlier today, the stimulus package passed the U.S. House of Representatives in a 246 to 183 vote. Today’s votes followed several days of negotiations by the House, Senate, and White House, with the final tab for the stimulus bill coming in at $787.2 billion.
On the housing front, the good news is that the legislation resets the conforming loan limit cap at $729,750, up from $625,500. Numerous counties in California experienced a marked decrease in their conforming loan and FHA limits on Jan. 1, and the stimulus bill reinstates 2008 loan limits through Dec. 31, 2009.
The bill also increases the first-time home buyer credit from $7,500 to $8,000, and removes the requirement that the credit be paid back if the buyer stays in the home for at least three years. It also extends the expiration date for the credit from July 1 to Dec. 1, 2009. Homebuyers must have purchased a home after Jan. 1, 2009, and before Dec. 1, 2009, to be eligible for the $8,000 credit.
C.A.R. and NAR have long advocated for higher conforming loan limits. The conforming loan limit provisions and other housing elements in the stimulus package are a step in the right direction for our industry and all Californians.
Now that the stimulus package is approved and is on its way to President Obama for signature, it is our hope that Congress will turn its attention toward helping homeowners remain in their homes and will take immediate steps directed specifically at stemming the ongoing foreclosure crisis.
This is excellent news!
Late this evening, the U.S. Senate passed the American Recovery and Reinvestment Act of 2009 by a 60 to 38 vote. Earlier today, the stimulus package passed the U.S. House of Representatives in a 246 to 183 vote. Today’s votes followed several days of negotiations by the House, Senate, and White House, with the final tab for the stimulus bill coming in at $787.2 billion.
On the housing front, the good news is that the legislation resets the conforming loan limit cap at $729,750, up from $625,500. Numerous counties in California experienced a marked decrease in their conforming loan and FHA limits on Jan. 1, and the stimulus bill reinstates 2008 loan limits through Dec. 31, 2009.
The bill also increases the first-time home buyer credit from $7,500 to $8,000, and removes the requirement that the credit be paid back if the buyer stays in the home for at least three years. It also extends the expiration date for the credit from July 1 to Dec. 1, 2009. Homebuyers must have purchased a home after Jan. 1, 2009, and before Dec. 1, 2009, to be eligible for the $8,000 credit.
C.A.R. and NAR have long advocated for higher conforming loan limits. The conforming loan limit provisions and other housing elements in the stimulus package are a step in the right direction for our industry and all Californians.
Now that the stimulus package is approved and is on its way to President Obama for signature, it is our hope that Congress will turn its attention toward helping homeowners remain in their homes and will take immediate steps directed specifically at stemming the ongoing foreclosure crisis.
This is excellent news!
Tuesday, February 10, 2009
WOWW - February 11, 2009; 8:30 am - 11:00 am
Councilmember Nancy Pyle's 2nd Annual (WOWW) (Westfield Oakridge Winter Walk and Resource Faire for Seniors) will be held on Wednesday, February 11 from 8:30 am to 11:00 am.
Schedule of events:
8:30 am to 11:00 am Resource tables open
8:30 am to 9:10 am Seniors register for WOWW in the Sears Courtyard of Westfield
Oakridge Mall and receive a FREE healthy breakfast
9:10 am to 9:15 am Councilmember Nancy Pyle's Welcome
9:15 am to 9:30 am Kaiser leads warm-up stretching exercises
9:30 am to 10:40 am Mall Walk
10:40 am to 11:00 am Kaiser leads cool-down stretching exercises
Raffle Drawing
11:00 am Councilmember Nancy Pyle's Closing Remarks
Come visit the table of B & A Realtors and receive a "Valentine" thank you.
Schedule of events:
8:30 am to 11:00 am Resource tables open
8:30 am to 9:10 am Seniors register for WOWW in the Sears Courtyard of Westfield
Oakridge Mall and receive a FREE healthy breakfast
9:10 am to 9:15 am Councilmember Nancy Pyle's Welcome
9:15 am to 9:30 am Kaiser leads warm-up stretching exercises
9:30 am to 10:40 am Mall Walk
10:40 am to 11:00 am Kaiser leads cool-down stretching exercises
Raffle Drawing
11:00 am Councilmember Nancy Pyle's Closing Remarks
Come visit the table of B & A Realtors and receive a "Valentine" thank you.
Sunday, February 8, 2009
COFFEE FILTERS...Who Knew!
Coffee filters...who knew! And you can buy 1,000 at the Dollar Tree for almost nothing.
1. Cover bowls or dishes when cooking in the microwave. Coffee filters make excellent covers.
2 Clean windows and mirrors. Coffee filters are lint-free so they'll leave windows sparkling.
3. Protect China . Separate your good dishes by putting a coffee filter between each dish.
4. Filter broken cork from wine. If you break the cork when opening a wine bottle, filter the wine through a coffee filter.
5. Protect a cast-iron skillet. Place a coffee filter in the skillet
to absorb moisture and prevent rust.
6. Apply shoe polish. Ball up a lint-free coffee filter.
7. Recycle frying oil. After frying, strain oil through a sieve lined
with a coffee filter.
8. Weigh chopped foods. Place chopped ingredients in a coffee filter on a kitchen scale.
9. Hold tacos. Coffee filters make convenient wrappers20for messy foods.
10. Stop the soil from leaking out of a plant pot. Line a plant pot
with a coffee filter to prevent the soil from going through the drainage holes.
11. Prevent a Popsicle from dripping. Poke one or two holes as needed in a coffee filter.
12. Do you think we used expensive strips to wax eyebrows? Use strips of coffee filters.
13. Put a few in a plate and put your fried bacon, French fries,
chicken fingers, etc on them. Soak s out all the grease.
14. Keep in the bathroom. They make great "razor nick fixers."
OH YEAH THEY ARE GREAT TO USE IN YOUR COFFEE MAKERS
1. Cover bowls or dishes when cooking in the microwave. Coffee filters make excellent covers.
2 Clean windows and mirrors. Coffee filters are lint-free so they'll leave windows sparkling.
3. Protect China . Separate your good dishes by putting a coffee filter between each dish.
4. Filter broken cork from wine. If you break the cork when opening a wine bottle, filter the wine through a coffee filter.
5. Protect a cast-iron skillet. Place a coffee filter in the skillet
to absorb moisture and prevent rust.
6. Apply shoe polish. Ball up a lint-free coffee filter.
7. Recycle frying oil. After frying, strain oil through a sieve lined
with a coffee filter.
8. Weigh chopped foods. Place chopped ingredients in a coffee filter on a kitchen scale.
9. Hold tacos. Coffee filters make convenient wrappers20for messy foods.
10. Stop the soil from leaking out of a plant pot. Line a plant pot
with a coffee filter to prevent the soil from going through the drainage holes.
11. Prevent a Popsicle from dripping. Poke one or two holes as needed in a coffee filter.
12. Do you think we used expensive strips to wax eyebrows? Use strips of coffee filters.
13. Put a few in a plate and put your fried bacon, French fries,
chicken fingers, etc on them. Soak s out all the grease.
14. Keep in the bathroom. They make great "razor nick fixers."
OH YEAH THEY ARE GREAT TO USE IN YOUR COFFEE MAKERS
Thursday, February 5, 2009
Clubhouse Recipe for Month of February
PEPPERED SALMON WITH TOMATO LIME AND CAPER RELISH
Relish:
2 Roma tomatoes, finely diced
1 Tbsp. capers
1 tsp. diced red onion
1 tsp. diced pepper (either yellow, orange, red, or green)
3 limes, rolled, squeezed and juiced
1 oz. extra virgin olive oil
Salt and pepper, to taste
Combine all ingredients in a mixing bowl and let stand for a minimum of 1 hour at room temperature. (Taste and adjust to your taste!)
Salmon:
2 - 6 oz. salmon filets, skinned and deboned
1 oz. olive oil
Course ground black pepper
Kosher salt
Generously sprinkle black pepper, and a bit of salt on one side of salmon filets. Heat olive oil over medium high heat in saute pan until it just beings to smoke. Add salmon, pepper side down and saute for 4-5 minutes until well browned. Flip and reduce heat to medium and continue to cook until done to wellness desired (4-5 minutes for medium, less for rare). Remove from pan and let rest on a plate for a couple of minutes.
To plate: Place mixed salad greens decoratively on plate and place salmon on top. Top with the relish and serve with vegetables.
As an alternative sauce: Boil down pure orange juice until thick and serve over the salmon with orange slices on the side of the mixed salad greens.
Taken from the Cooking Demonstration by Gavin Williams, Director of Food and Beverage at The Villages.
Relish:
2 Roma tomatoes, finely diced
1 Tbsp. capers
1 tsp. diced red onion
1 tsp. diced pepper (either yellow, orange, red, or green)
3 limes, rolled, squeezed and juiced
1 oz. extra virgin olive oil
Salt and pepper, to taste
Combine all ingredients in a mixing bowl and let stand for a minimum of 1 hour at room temperature. (Taste and adjust to your taste!)
Salmon:
2 - 6 oz. salmon filets, skinned and deboned
1 oz. olive oil
Course ground black pepper
Kosher salt
Generously sprinkle black pepper, and a bit of salt on one side of salmon filets. Heat olive oil over medium high heat in saute pan until it just beings to smoke. Add salmon, pepper side down and saute for 4-5 minutes until well browned. Flip and reduce heat to medium and continue to cook until done to wellness desired (4-5 minutes for medium, less for rare). Remove from pan and let rest on a plate for a couple of minutes.
To plate: Place mixed salad greens decoratively on plate and place salmon on top. Top with the relish and serve with vegetables.
As an alternative sauce: Boil down pure orange juice until thick and serve over the salmon with orange slices on the side of the mixed salad greens.
Taken from the Cooking Demonstration by Gavin Williams, Director of Food and Beverage at The Villages.
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