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Cerritos, CA

Cerritos Reverse Mortgage Question - What’s the Loan To Value on a Reverse Mortgage?

Deborah Nance -  Reverse Mortgage Consultant in Southern California: Loan Officer in Corona, CA
Sunset CruiseCerritos Reverse Mortgage Question - What’s the Loan To Value on a Reverse Mortgage?

I get this question all the time. I know that most folks are hoping to hear a number from me like 60%, 80% even 100% of loan value, but that’s just not the way it works.

The loan amount (or principal limit) on a reverse mortgage is based upon a formula provided by HUD which factors in three elements: AGE, HOME VALUE & EXPECTED RATE.

AGE - The age of the youngest borrower is used in the formula as a factor. All borrowers must be over 62, but an older borrower will qualify for a higher loan amount than a younger borrower.

The reasoning for this is based upon life expectancy. A younger borrower needs a bigger cushion of equityto allow for the eventual repayment of the loan.

HOME VALUE - The higher the loan value, the higher the loan amount up to and including a maximum home value of $625,500. This doesn’t mean if your home is worth more you can’t get a reverse mortgage. It just means that if you are getting a HECM the calculations will be done as if your homes value was $625,500. If your home is worth considerably more than that you may want to research a Jumbo Reverse Mortgage which offers many of the same features and protections of the HECM.

EXPECTED RATE - Not the interest rate on the loan itself, the Expected Rate is just that, what the borrower can “expect” the interest rate to average. Easy to figure on the fixed rate reverse as it matches the interest rate on the loan. It’s a bit more complex on the adjustable. The expected rate for an Adjustable HECM is figured on the 10 Year Libor Swap and the Interest on the loan is figured on the 1 Month Libor index.

I hope that you found this information helpful! Here’s how to get your own Reverse Mortgage Information Kit.

10751 Arabella Court in Cerritos, California, $509,900

11-05-11
Chris Fisher
Chris Fisher: Virtual Assistant in Concord, CA

10751 Arabella Court, Cerritos, CA

This stunning remodel is ready to move into!

  • Completely remodeled
  • Brand new kitchen with stainless steel appliances, granite counter tops
  • Travertine flooring, carpet in bedrooms
  • 2 full baths, fully remodeled with Koehler faucets
  • Front and back yards completely re-landscaped with new irrigation
  • Covered patio
  • New roof
  • New vinyl windows throughout
  • Newly installed stone veneer
  • All work performed with city permits

10751 Arabella Court, Cerritos, CA
Standard sale, not REO or Short Sale

For more information, contact Glenn Ishino, Realtor, (714)856-9145
Open Sunday, 11/6/11, from 1-3pm

10751 Arabella Court, Cerritos, CA

Went out to dinner last night, and I paid for the table next to me - Pay It Forward

Ralph Gorgoglione                        - California Real Estate (800) 591-6121: Real Estate Agent in Los Angeles, CA

Went out to dinner last night, and I paid for the table next to me - Pay It Forward

I am playing in a tennis tournament this weekend, and I won my doubles quarterfinal match yesterday.

I was starving after the match, so I decided to go to one of my favorite places to eat that I haven't been to in a while because it's not close to where I live now, but it was close to the tournament site.

Ceasar's Mongolian Barbecue. If you've never been to a Mongolian Barbecue, you HAVE to try it. You step up to a bar with all kinds of veggies, thinly sliced meats and sauces, put it in your bowl and hand it to the chef who gives it a quick stir-fry on a huge 4-foot diameter flat "wok", then gives it back to you in a clean plate. Yum! I usually end up seriously overeating at this place since it's all you can eat.

Anyway, I was eating my meal, and I noticed a family of four sitting at the table next to me. They seemed like a nice bunch. Call me crazy, and I'm not sure why but something told me these people could stand to have something nice be done for them.

I called the waitress over and asked her to bring me their bill, and that I would like to pay it for them. So I paid their bill and mine, and gave the waitress a cash tip.

On my way out, I asked the waitress to give them the bill (not the credit card receipt) showing it was paid, and I wrote on the back of one of my cards and attached it to the bill - "Do something nice for someone in the next week. Pay It Forward. All the best, Ralph"

“Los Angeles 411” Enjoy an evening at the Cerritos Center for Performing Arts in Cerritos, California

Richard Ruggaber -  California Real Estate - (800) 591-5788: Real Estate Agent in Los Angeles, CA

Spend an evening at the Cerritos Center for Performing Arts in Cerritos, California!

The Cerritos Center for Performing Arts is a wonderful place to watch live and exquisite performances in music, dance and theater.

This amazing performing arts center is owned and operated by the City of Cerritos and provides performances annually from August through May.

Each performance has an exquisite mix of artists and performers!

The theater is very flexible as far as seating and stages are concerned. It consists of six different seating and staging configurations.

The Cerritos Center for Performing Arts is also perfect for hosting special events, banquets, meetings and conferences.

For more information regarding the Cerritos Center for Performing Arts please visit the link: http://www.cerritoscenter.com/

What a great way to spend the evening!

CHEERS

Cerritos, CA Real Estate Market Status Buyer's vs. Sellers'

05-28-10
Duane White
Duane White: Real Estate Agent in Cerritos, CA

Hi this is Duane White, your personal FREE real estate consultant. I work with buyer and seller's in Orange and Los Angeles County Real Estate deals. Because of the decline in the values of properties due to the Sub-Prime Mortgage collapse, buyer of real estate seem to believe this is a "Buyer's" market. However, due to the lack of inventory or homes on the market below the $800,000 range, we are experiencing a "Seller's" market. This is truly apparent for First Time Buyers wanting to purchase a home or condo below the $350,000 range. Any property that is price well is getting multiple offers, by multiple, I mean over well over 10 plus. I have seen new buyer go from excited to placing their first offer to empathetic when making their sixth offer. IT IS TOUGH OUT THERE FOR FIRST TIME BUYERS. There is light at the end of the tunnel, but you MUST be deligent in the quest for a home.

As a Realtor, it is our job to manage the expectation of our clients. We are to be the professionals the explain the process and state of the current market to our clients. At Home Centre Real Estate we are striving to explain the highs and the lows of the process of purchasing a home. Things have change over the past few years, and even up to the past few months with our NEW HUD-1, and more recent our NEW Purchase Contract. It it making things better, or more complicated? At this point only time will tell,..

Talk Soon Duane White - Cerritos, CA

"I Will Sell Your Home In 60 Days or I Will Buy It!"