About Roanoke County, VA

'Twas a few weeks before Christmas, when all through the open house
Not a buyer was stirring, not even a mouse;
The for sale sign had been hung in the front yard with care,
In hopes that a buyer soon would be there;
The owners were headed to their new destination,
With hopes that an offer would come to fruition.
When out on the lawn there arose such a clatter,
I sprang to my window to see what was the matter.
When, what to my wondering eyes should appear,
But the Realtor and Stager and all of their staging gear,
With a little old driver, so lively and strong,
I knew in a moment this would not take long.
From the top of the porch! to the top of the wall!
Now put it away! Put it away! Put it away all!
A wink of the eye and a twist of the head,
Soon gave me to know I had nothing to dread;
They spoke not a word, but went straight to their work,
After rearranging and decluttering, they turned with a jerk
Their work here was done,
And soon the buyers they would come!
And away they all flew like the down of a thistle.
But I heard them exclaim as they drove out of sight.
"Happy Selling to all, and to all a good-night."

We've received some of the biggest news to hit newsstands in quite some time and it barely made the spotlight! News that the Treasury Dept has plans to purchase roughly $600 Billion in mortgage-backed securities should be posted on the front page of every news giant across the nation, but instead we see Somali Pirates & OJ's sentencing... Granted, pirates & OJ do have a knack for capturing our attention on a celebrity level BUT...the Treasury news is news that truly has the potential to start a boom like no other! Let's decipher the $600 Billion...

Under this proposal, the Treasury buys mortgage-backed securities...why? Because by purchasing the securities, it pushes rates down. Right now, interest rates on a 30-year fixed rate mortgage are hovering around 6% and the goal is to drive them down to 4.5%!!

If enacted, such a plan would create an unprecedented opportunity for anyone with stable income and decent credit score to refinance at a rate unseen since the early 1960's...essentially creating the "mother of all refi-booms"!!!

Refinance boom aside, there are 2 major benefits to our economy:

1. Places IMMEDIATE cash in the pockets of our homeowners able to refinance to lower monthly payments

2. Lower interest rates = more Buyers flooding the market = halt of housing value decline

The goal is to drive mortgage rates so low that housing prices stop falling & actually start to rebound...all the while giving much needed cash flow to current homeowners able to refinance. The trick, then, becomes truly being ready when the opportunity arrives. It's no secret that we're currently in one of the most volatile markets ever, and it's not uncommon to see a .75% swing in rates within a 24 hour period. By preparing now, you absolutely set yourself up for success by being able to call your mortgage professional and say LOCK, LOCK, LOCK that rate, when they start falling!

In the midst of a recession...and, yes - it's official, we're in a recession...this is some of the greatest news we could have received! This has the potential to dwarf the boom of 2003 and give our economy the much needed shot of adrenaline we're all hoping for and although we may be "officially" in a recession...you don't have to participate! There is good news all around us, it just may not be on the front page...

For more information or to help prepare for the coming plunge in rates...email me & let's get started.

Cheers!

Josh Perrington

1^st Metropolitan Mortgage

Josh@1st-Metropolitan.com | www.1st-Metropolitan.com | 540.904.0842

2762 Electric Rd, Suite Roanoke, VA 24018

WDBJ 7 (Roanoke, VA) posted this story a few month's ago, which shows one women's perspective on using her Reverse Mortgage to help pay keep her home & continue to pay for her medical expenses, payoff bills, and make home repairs. Enjoy!

Widow calls reverse mortgage a blessing

News7's Hollani Davis caught up with a 75-year-old widow who calls her reverse mortgage a blessing, and wants to clear up the misconception that it's the government's way of trying to take your home.

"After you work so long and so hard," said Mary Clark.

For Clark, the thought of losing or selling the home she's lived in for 44 years was scarier than applying for a reverse mortgage.

The idea of using home equity to pay off a current mortgage, make home repairs or pay off bills is becoming more popular with older Virginians. The only major requirement is you have to be at least 62. The amount you can qualify for depends on your property value and the current interest rate.

Experts say one drawback with the reverse mortgage is that the up front expenses are typically high. And by drawing out equity, parents aren't leaving much of a legacy for their children.

In Clark's case, she was able to set aside the lump sum from her loan to help with medical and other monthly bills. That's the peace of mind she's giving her children and herself.

"It's a relief. A big relief to me," said Clark.

Whether you decide to take a lump sum or have your money divided out monthly, that's on you. The best advice from experts though is to look at your financial situation.

Josh Perrington - Reverse Mortgage Specialist

1^st Metropolitan Mortgage - Roanoke, VA

www.1st-Metropolitan.com | 540.904.0842 | 2762 Electric Rd, Roanoke, VA 24018

A recent report by the Urban Institute titled "How Much Could Reverse Mortgages Contribute to Retirement Incomes?" states that homeowners over the age of 62 could see an 18% increase in median annual income just by using an annuity-type Reverse Mortgage. Homeowners over the age of 82 could see increases as much as 36% based on 2006 home values.

The report took a conservative approach and used interest rates in effect March 2008 & did not use the newly instated $417,000 nationwide lending limit. Using the older limit of $362,790 and accounting for a possible 10% drop in home values they used $124,500 as the median household equity to arrive at roughly a 16% gain in income.

What does all of this mean?

Simply put - it means that by using the annuity-type feature that is provided with a Reverse Mortgage, the homeowner is able to receive additional non-taxable "income" monthly. This option is not for everyone, but could quite possibly provide a much-needed boost to a homeowner's financial situation that may be above the age of 62...and have seen a recent sharp decline in their retirement assets.

I would absolutely suggest consulting a licensed Financial Advisor, prior to making any decisions regarding a Reverse Mortgage. We work very closely with the area's leading financial experts and would be happy to arrange a meeting. Simply click here to request an introduction.

As always, the consultations are free and tend to provide a wealth of insight into the possibilities that lay ahead.

If you would like more information as to how a Reverse Mortgage may benefit you in this market, please feel free to call me directly at (540) 904-0842 or email me at Josh@1st-Metropolitan.com. We look forward to helping.

Cheers!

Josh Perrington - Reverse Mortgage Specialist

1^st Metropolitan Mortgage - Roanoke, VA

www.1st-Metropolitan.com | 540.904.0842 | 2762 Electric Rd, Roanoke, VA 24018

You probably know how the process usually works when purchasing a home with a traditional loan. Once the buyer finds the home they want, it's appraised - then inspected. The lender only approves the loan if the property meets the requirements in value AND condition. In the case of foreclosures, usually the appraised value will be much higher than the selling price, mainly because the seller simply needs to get out from under the debt. So...what do you do when the home won't pass inspection?

Unless you have an endless supply of cash lying around...start looking at the next best thing...a Renovation Loan (FHA 203k)!!

In the current market many foreclosures sit on the market in disrepair due to neglect. Those properties are considered poor collateral that lenders would normally they'd prefer not to lend on. However, for Renovation loans the loan is based on the after-repair value (not current value) and includes an escrow account to complete the repairs needed in order to bring the house to a condition that lenders prefer. This means that the current condition of the property is not as important as the condition of the property after the renovation is complete. This provides an outlet to purchase dilapidated properties, many of which have spent extended periods on the market due to the lack of availability to traditional financing, and solves the problem that most lenders face when dealing with property in disrepair. What this means to the home buyer is generally a significant discount to "as-is" value and, quite often, a fantastic deal on the house.

Now, there are 2 types of FHA 203k Renovation loans...how do you know which to choose?

If your repairs DO NOT require structural repairs OR they are less than $35,000, then you would want the loan known as a Streamline FHA 203K. With this loan you will have two draws (cash disbursements) after closing. Generally, the lender will release 50% upfront and 50% when the work is completed. On most of these the lender will require a final inspection to make sure the work is complete, but on some of the more simple renovations you can provide receipts showing materials have been purchased and that will be sufficient.

The other type is for those homes needing structural repair OR they are over $35,000. These are known as full FHA 203K and the process entails a little more effort. Many times, when more extensive repair is involved, it's wise to involve an architect and get architectural drawings so the contractor bids and appraisal are as accurate as possible. A HUD approved 203K consultant will also be assigned to help determine repairs and administer draws.

Essentially Renovation Loan products can establish equity for the future in the home that is being purchased. While the market is low, BUY these homes at a ‘bargain' price, renovate it, and then enjoy the financial rewards it will provide when the market comes back. As the property values recover, your home equity will increase substantially.

We take great joy in helping assemble your renovation team and watch you take advantage of the opportunities today's market has provided. Feel free to call or email anytime & let's get to work!

Cheers!

Josh Perrington - FHA 203k Renovation Sr. Mortgage Planner

Josh@1st-Metropolitan.com | www.1st-Metropolitan.com | 540.904.0842 | Roanoke, VA