Purchase Reverse Mortgage Examples – Oceanside Homes for Sale

Two examples of how a purchase reverse mortgage (HECM) can work for you when buying Oceanside homes for sale.

Purchase reverse mortgage(HEMC)  example 1 – Oceanside clients ages 65 & 64 who are just retiring want to downsize to a Ocean Hills Country Club single story home with all the amenities of their existing home and use the proceeds from the sale to pay cash.  Their goal is to have no future payments on their Ocean Hills Country Club home. 

I estimate that the net proceeds from the sale of their current San Diego North County home to only be around $200,000.
 
I suggested that my Ocean Hills buyer take a look at the Reverse Mortgage Purchase offered by HomeServices Lending, an affiliate of Wells Fargo bank.      
 
The clients really want a Ocean Hills home that is a great deal at $450k  (3 yrs ago $600k).  We all sit down and run the numbers on this Ocean Hills home using a Reverse Mortgage Purchase.   Here is what we came up with:

Purchase Price                         $450,000
Reverse Mortgage Funds        $262,800                         

Cash Required to Close           $187,200

The clients takes $187,200 of the $200,000 from the sale of their old home combined with the
$262,000 reverse mortgage proceeds from their HomeServices Lending loan through Wells Fargo to purchase the new home for $450,000.  And they will be achieving their goal of  never having any monthly mortgage payments as long as they live in the home! 

To sum up, many Ocean Hills Country Club home buyers pay cash.  In this case that would have been $450,000.  In our case they invested only $187,200 of their money and have no payments for life.  Several years ago, the selling price of this home would have been over $600,000 and no reverse purchase mortages were available.  Good deals are available now.

Purchase reverse mortgage (HEMC) example 2 – Marge and John, both 74, want to buy a one story manufactured home in Emereal Lake Village in Oceanside, CA.   They are currently selling their Carlsbad, CA two story home.  They feel a single story home will be better suited health wise for the rest of their life. 

Marge and John look at several homes in Emerald Lake Village for around $300,000.  All of Emerald Lake Village is one story detached homes with reasonable homeowners fees.  Marge and John meet with a reverse purchase mortgage specialist at Home Services Lending. 

They make an offer and get it accepted at $300,000. 

Purchase price of  $300,000,   reverse mortgage proceeds of $177,213,  leaves an investment of $122,787 needed.  Marge and John have no more payments for live.  

To find out more about purchase reverse mortgages read my other blogs:

Reverse mortgages for San Diego home purchases

Reverse Mortgages – Frequently Ask Questions

Reverse Mortgage – Purchase Ocean Hills

Purchase Your San Diego Home with a Reverse Mortgage.

Also, contact Gary Harmon, and I will put you in touch with my reverse purchase mortgage specialist at HomeServices Lending.

* Ever effort to make these examples correct have been take, but rates constantly change.  The amount that you have to put down on a reverse purchase mortgage changes with your age.  See my table for purchase reverse mortgage   for a general idea. 

 

 

 

Put Gary's Winning Team to Work for You!

Whether you are a North County buyer or North County seller you will benefit from a great winning team Gary Harmon has available to meet all your San Diego North County real estate needs.  Team members include California Title Company, Pickford Escrow, First American Home Warranty, and HomeServices Lending.  I have included a short bio of each affiliate below.  

Of course, the top member of Gary’s winning team is Prudential California Realty.  Prudential is recognized by the independent, San Diego Business Journal as the top real estate company in volume for the 14 straight year.  Prudential California Realty was once again honored by the Union Tribune, SignOnSanDiego.com 2010 readers poll as San Diego’s BEST real estate company.   Nationally, Prudential Real Estate Network ranked “Highest Overall Satisfaction for Home Sellers Among National Full Service Real Estate Firms” in J.D. Power and Associates’ 2010 Home Buyer/Seller Study. This marks the second time in three years that the Network ranked highest in seller satisfaction.  

To experience the expertise of a great real estate team, contact Gary Harmon, your North County Realtor.

Improve and Protect Your Credit Score

HomeServices Lending

Whether you are an over 55 senior looking at Ocean Hills Country Club homes are a first time home buyer just hoping to get a start, you should do everything they can to improve your FICO credit scores.  Why, because credit scores can mean the difference between a 4.25% and a 5.25% home mortgage rate. That can mean the difference as to wheater you qualify for a loan to purchase your San Diego North County home.  Credit scores can also mean the difference in getting a conforming mortgage and an FHA mortgage.  They can mean the difference in an underwriting approval and an underwriting denial.  Get your credit in order before trying to buy your San Diego North County home.   You should treat your FICO credit just as you would an investment portfolio, always strive to improve and protect what you have. The following tips, if followed, will help you with your journey to becoming a San Diego homeowner.

What Can You Do to Improve Your FICO Credit Score?

  • Try to get current and stay current.
  • Apply for and open new credit card accounts only as needed.
  • Keep your credit balances low on all credit card accounts.
  • Pay off debt rather than moving it around.  Owing the same amount, but have fewer accounts can help.
  • You should pay your bills on time.  Late payments and collections can have a serious negative impact on your credit score.
  • If you have been managing credit for a short time, don’t open a lot of new accounts too rapidly.

Once you get a good FICO credit score, you will want to do every thing you can to keep that good score.

What Can Affect Your Credit Score?

  • Delinquent payments
  • High outstanding debt, especially “revolving credit card debt”
  • The amount of new accounts you have opened  right before applying for credit
  • Credit inquiries can lower your score

What Type of Credit Inquiries Hurt Your Score

  • A credit check for an auto loan
  • A credit inquiry for a credit card application
  • A credit check for a store credit card
  • A credit check for a mortgage loan

While some credit inquiries can hurt you score by up to 100 points, a mortgage credit inquiry is estimated to only lower your credit score by just 5 points.  So when buying a purchase as large as a San Diego North County home you should shop around for the best rate and terms.  This shopping needs to be limited to about 14 days so as to minimize the rate on your FICO Credit Score.

I would invite you to check out HomeServices Lending, a member of my winning team members.  HomeServices is an affiliate of Wells Fargo Bank.  For San Diego North County real estate information,including information on North County  homes for Over 55, contact Gary Harmon, your North County Realtor.

The Time to Buy Escondido Real Estate is NOW

Many think the time to buy is now

Prudential California Realty took a real estate outlook survey in 2010 and found most Southern California and San Diego North County buyers think now is the time to buy.

Time to buy Escondido Real Estate

There are only 10 of homebuyers that did not think this is the  time to buy.  If you have been on the fence, get in the game and find your Escondido home now.  Contact Gary Harmon, one of the top Escondido Realtors, for more information.

San Diego North County buyers see the market moving towards stability

The number of Southern California consumers who believe the Escondido real estate market and other San Diego North County real estate markets are stable outnumber the percent who believe the market is unstable.

Escondido real estate market stability

There are only 29% of Souther California buyers that think the real estate market is unstable.  That leaves 71% implying that “the time to buy Escondido real estate  is NOW.”

Most Escondido real estate buyers believe the real estate market is on an upward trajectory

Over 26 % of homebuyers think the Escondido real estate market is stronger than it was a year ago.  And, one year from now, 51% expedct to see the San Diego North county real estate market even stronger.  The survey only saw 7% who thought it would be weaker.  With market and prices going up, now is the time to contact Gary Harmon, your top North County realtor.

North County buyers see potential for appreciation in both short and long term

North County homes appreciation

North County buyers see appreciation coming.  Over 46% of Souther California buyers expect real estate prices to apreciate in the next year.  Current data for San Diego North County shows that is actually happening.  In the next 5 years, 79% expect prices to increase.  Don’t let this good market pass you by, contact Gary Harmon today.

Current interest rates help make the time to buy NOW

HomeServices Lending is one of Gary Harmon’s Winning Team members.  Contact them for current rates and to get prequalified today.

Escondido real estate and HomeServices Lending

For an experience Escondido real estate agent, contact Gary Harmon, your top Escondido Realtor.

Tips to Prevent Mortgage Fraud

Escondido home loan

HomeServices Lending

When you are in the market to buy Escondido real estate, the first thing you should do is to get pre-qualified with a lender.  I recommend HomeServices Lending and Charla Rueda at Bank of America.  During the process of buying your Escondido home and getting a loan here are some  “Don’ts” that can help avoid mortgage fraud.

When getting your Escondido home mortgage:

  • Don’t provide false information about your job, income, credit or bank accounts.
  • Don’t lend your credit info or social security # to anyone so they can take out a loan in your name.
  • Don’t close on any loan on an Escondido house that has any false of misleading information.
  • Don’t use appraisals that have incorrect or inflated values on the Escondido home.
  • Don’t use down payment or earnest money that did not come from you.
  • Don’t pay your good faith deposit to anyone except Gary Harmon, your Escondido Realtor or directly to the escrow company you are using for the Escondido home purchase.
  • Don’t let anyone sign anything for you during the Escondido real estate purchase.
  • Don’t expect to get “paid” for purchasing a home.  You will need to bring a certified check to escrow prior to closing on your Escondido property.
  • Don’t pay anyone any additional fees or cost for the loan after it closes.  When in doubt, check with Gary Harmon, your Escondido Realtor.

The Do’s of mortgage fraud prevention tips will be listed in a p0st to follow.  For Escondido real estate information that you can trust, contact Gary Harmon, your top Escondido Realtor.