9/05/2017

How A Reverse Mortgage Helps Mom and Dad

Mom keeps her rose garden with a Reverse Mortgage


The advantages and disadvantages of a reverse mortgage


Mom or Dad get older and retirement income doesn't meet their basic needs. You may not have
the cash flow to send them money every month. They may be silent about the struggle to cut coupons and make ends meet.
He or She or both have equity or cash value in their home.
They want to stay in the home until the die.
Neighborhood friends, church and stores are familiar. There's a boy down the street who walks the aging dog. The family next door greets and waves each time the parents come or go. It's easy to know where you are going and walk the sidewalks. Familiarity over time makes a place become a home.

Change is difficult for the elderly. Packing mementos, giving away belongings and down sizing to smaller home does not always bring happiness. Living in assisted care facility seems safer to children who live far away because there are professionals to check on Mom or Dad. You sell your parent(s) on bridge, golf, and activities but the loss of privacy, loss of history and lack of freedom is hard for them to accept. For me not being able to garden would make me depressed.

A reverse mortgage allows Mom or Dad or both to stay in their home. Increase monthly cash flow pays for prescriptions, food, travel and little luxuries they couldn't previously afford. 

A reverse is a government loan also called a HECM - organized like a backwards Home Equity Line.

The home ownership obligations with a HECM are property taxes, fire insurance (or flood if in mapped area) and Homeowner Association fees due (if any). The borrowers keep the property in their own names. they can live there until they pass away. Remaining equity, is then distributed upon refinance or sale of the home.

The Disadvantages are:
They are very expensive and after October 1 2017 the Trump Administration is increasing the costs.

Find out all the rules, ins, outs, and take a loko at the new reverse mortgage. It might be a good tool for your family.
Terms and conditions apply

NMLS 324982
C G Barbeau

(949)  784 - 9699 cell

949 South Coast Drive # 240
Costa Mesa, CA 92626


8/30/2017

HELOC Rates Rise

HELOC coming due in full?
Home Equity Loan rising?
Second Mortgage rate increase?
Home Equity Lines Of Credit are seeing rates rise
and becoming due in full as they age
Call me for solutions
(949) 784- 9699
C G
NMLS 324982
Although rates on first trust deeds decreased this past two days, prime seconds will not
If you have a Home Equity Line of Credit (HELOC) you should be concerned where your rate and monthly payment will be in the future

$100k line at 5.25% = $522
Take the rate @ 10% = $877
Take the rate @ 18% = $1,507
Most of these lines of credit have a lifetime cap of 18%.
Prime Rates rise for HELOC

United States Average Monthly Prime Lending Rate  Forecast 2016-2020
Bank Lending Rate in the United States is expected to be 4.00 percent by the end of this quarter, according to Trading Economics global macro models and analysts’ expectations.
Looking forward, we estimate Bank Lending Rate in the United States to stand at 4.25 in 12 months’ time. In the long-term, the United States Average Monthly Prime Lending Rate is projected to trend around 5.25 percent in 2020, according to our econometric models.

Given the forecast, Home Equity Lines of Credit are getting pretty expensive. Get ahead of the curve and let us help you get into a fix loan.

Don’t gamble your home, moved to a fix loan!



8/01/2017

California Property Tax Percentage

California Tax rates by County Assessor
Property taxes in California Counties percentages
Cities can have additional charges such as sewer, water, police,
California Flag 
fire department, vector control.
Mellos Roos taxes can also be added when a tract is new.
Mello Roos tax pays for the curbs, gutters, roads, parks etc
built to accommodate new construction areas. This additional
tax can be very expensive. Local taxes are on average around an
additional quarter or .25%

In general property taxes are about 1.2% of current sale price and they
increase over time. Only way to reduce the property taxes is if values fall,
you can temporarily request for a formal review

Property taxes in California are a percentage of the real estate value.

Proposition 13 declared property taxes were 
assessed their 1975 value and restricted 
annual increases of the tax 
to an inflation factor, not to exceed 2% per year.

Alameda    .88%
Alpine       .58%
Amador     .77%
Butte         .74%
Calaveras  .87%
Colusa      .79%
Contra Costa .96%
Del Norte     .74%
El Dorado .81%
Fresno        .88%
Glenn        .70%
Humboldt .62%
Imperial    .94%
Inyo          .68%
Kern         .12%
Kings       .80%
Lake        .86%
Lassen     .78%
Los Angeles.79%
Madera     .89%
Marin     .78%
Mariposa .72%
Mendocino .65%
Merced    .98%
Modoc    .72%
Mono    .68%
Monterey .78%
Napa      .82%
Nevada   .82%
Orange   .71%
Placer   1.02%
Plumas   .65%
Riverside 1.13%
Sacramento .95%
San Benito 1.00%
San Bernardino .92%
San Diego .78%
San Francisco .66%
San Joaquin 1.06%
San Luis Obispo.73%
San Mateo .69%
Santa Barbara .67%
Santa Clara .79%
SantaCruz .68%
Shasta      .76%
Sierra      .62%
Siskiyou  .68%
Solano     .97%
Sonoma    .80%
Stanislaus  1.02%
Sutter     1.02%
Tehama    .73%
Trinity    .54%
Tulare    .85%
Tuolumne  .65%
Ventura   .79%
Yolo      .93%
Yuba     .95%