Aliso Niguel Mortgage

That is a great question. The current 30 Year Fixed is fluctuating between 5.5% to 5.75% for 720+ credit and 20% down payment. This rapid increase in rates from the historic lows we saw less than 6 months ago has really cooled off the home purchase and refinance market. I think we see rates in this range for the rest of this year and then the 4% range in 2023. Good news that these higher rates may start to help with price drops on homes given less demand. I will be ready when you are ready to make the first offer! :)

Yes. Many conservative clients choose to continue to make their mortgage payments even though they are not required. You may make all, half, or even a fraction of your payments to keep the loan balance from increasing

Hi Jake, That's a great question. We offer many programs for first time homebuyers that include FHA and Conventional and CALHFA programs. The key factors to determine which one to use is based on the amount of down payment you have, your credit scores and income. We also offer programs to give down payment assistance for the minimum 3% to 3.5% down payment required for individuals struggling to put this amount together. Always best to have a consultation with me 6 months to a year in advance of purchasing a home so I can help blueprint the way to homeownership. Thanks for the question!

For the traditional FHA Reverse Product - age 62. For non-traditional "Proprietary Products" that are not FHA regulated - 55 year and older.

Below is a list of documents that are required when you apply for a mortgage. However, every situation is unique and you may be required to provide additional documentation. So, if you are asked for more information, be cooperative and provide the information requested as soon as possible. It will help speed up the application process. Your Property Copy of signed sales contract including all riders Verification of the deposit you placed on the home Names, addresses and telephone numbers of all realtors, builders, insurance agents and attorneys involved Copy of Listing Sheet and legal description if available (if the property is a condominium please provide condominium declaration, by-laws and most recent budget)

Your Income Copies of your pay-stubs for the most recent 30-day period and year-to-date Copies of your W-2 forms for the past two years Names and addresses of all employers for the last two years Letter explaining any gaps in employment in the past 2 years Work visa or green card (copy front & back)

If self-employed or receive commission or bonus, interest/dividends, or rental income: Provide full tax returns for the last two years PLUS year-to-date Profit and Loss statement (please provide complete tax return including attached schedules and statements. If you have filed an extension, please supply a copy of the extension.) K-1's for all partnerships and S-Corporations for the last two years (please double-check your return. Most K-1's are not attached to the 1040.) Completed and signed Federal Partnership (1065) and/or Corporate Income Tax Returns (1120) including all schedules, statements and addenda for the last two years. (Required only if your ownership position is 25% or greater.) If you will use Alimony or Child Support to qualify: Provide divorce decree/court order stating amount, as well as, proof of receipt of funds for last year.

Source of Funds and Down Payment Sale of your existing home - provide a copy of the signed sales contract on your current residence and statement or listing agreement if unsold (at closing, you must also provide a settlement/Closing Statement) Savings, checking or money market funds - provide copies of bank statements for the last 3 months Stocks and bonds - provide copies of your statement from your broker or copies of certificates Gifts - If part of your cash to close, provide Gift Affidavit and proof of receipt of funds Based on information appearing on your application and/or your credit report, you may be required to submit additional documentation

Debt or Obligations Prepare a list of all names, addresses, account numbers, balances, and monthly payments for all current debts with copies of the last three monthly statements Include all names, addresses, account numbers, balances, and monthly payments for mortgage holders and/or landlords for the last two years If you are paying alimony or child support, include marital settlement/court order stating the terms of the obligation.

There are many different payment plans for receiving your cash proceeds from reverse mortgage. The most popular delivery option is the lump sum option where the entire sum of money is given at the time of closing. Other options include a line of credit, fixed monthly payments, or a combination of these.

Yes. Cash received from a reverse mortgage is simply “icing on the cake.” The main motivation for many qualified seniors is for the guaranteed elimination of their mortgage payments for the rest of their life.

No! This is one of the biggest myths of the reverse mortgage product. Even if you live to 125 years of age, the bank can never take the home from you. As long as property taxes, insurance and necessary maintenance repairs are made, the loan will only come due after death of the last surviving spouse.

Yes. A reverse mortgage has no effect on the ownership of your home. After a reverse mortgage you will maintain title to your home.

No. A reverse mortgage is a non-recourse loan, or a loan which requires no repayment. Therefore, it is referred to as a reverse mortgage. Instead of making payments to repay a loan like most conventional loans, the reverse mortgage pays you, and the loan is due only after death of the last surviving spouse.

On a conventional mortgage, when your down payment is less than 20% of the purchase price of the home mortgage lenders usually require you get Private Mortgage Insurance (PMI) to protect them in case you default on your mortgage. Sometimes you may need to pay up to 1-year's worth of PMI premiums at closing which can cost several hundred dollars. The best way to avoid this extra expense is to make a 20% down payment, or ask about other loan program options.

An Appraisal is an estimate of a property's fair market value. It's a document generally required (depending on the loan program) by a lender before loan approval to ensure that the mortgage loan amount is not more than the value of the property. The Appraisal is performed by an "Appraiser" typically a state-licensed professional who is trained to render expert opinions concerning property values, its location, amenities, and physical conditions.

How many and what types of credit accounts do you have? Although it is generally good to have established credit accounts, too many credit card accounts may have a negative effect on your score. In addition, many models consider the type of credit accounts you have. For example, under some scoring models, loans from finance companies may negatively affect your credit score. Scoring models may be based on more than just information in your credit report. For example, the model may consider information from your credit application as well: your job or occupation, length of employment, or whether you own a home. To improve your credit score under most models, concentrate on paying your bills on time, paying down outstanding balances, and not taking on new debt. It's likely to take some time to improve your score significantly.

How long is your credit history? Generally, models consider the length of your credit track record. An insufficient credit history may have an effect on your score, but that can be offset by other factors, such as timely payments and low balances. Have you applied for new credit recently? Many scoring models consider whether you have applied for credit recently by looking at "inquiries" on your credit report when you apply for credit. If you have applied for too many new accounts recently, that may negatively affect your score. However, not all inquiries are counted. Inquiries by creditors who are monitoring your account or looking at credit reports to make "prescreened" credit offers are not counted. How many and what types of credit accounts do you have? Although it is generally good to have established credit accounts, too many credit card accounts may have a negative effect on your score. In addition, many models consider the type of credit accounts you have.

Credit scoring models are complex and often vary among creditors and for different types of credit. If one factor changes, your score may change -- but improvement generally depends on how that factor relates to other factors considered by the model. Only the creditor can explain what might improve your score under the particular model used to evaluate your credit application. Nevertheless, scoring models generally evaluate the following types of information in your credit report: Have you paid your bills on time? Payment history typically is a significant factor. It is likely that your score will be affected negatively if you have paid bills late, had an account referred to collections, or declared bankruptcy, if that history is reflected on your credit report. What is your outstanding debt? Many scoring models evaluate the amount of debt you have compared to your credit limits. If the amount you owe is close to your credit limit, that is likely to have a negative effect.

Credit scoring is a system creditors use to help determine whether to give you credit. Information about you and your credit experiences, such as your bill-paying history, the number and type of accounts you have, late payments, collection actions, outstanding debt, and the age of your accounts, is collected from your credit application and your credit report. Using a statistical program, creditors compare this information to the credit performance of consumers with similar profiles. A credit scoring system awards points for each factor that helps predict who is most likely to repay a debt. A total number of points -- a credit score -- helps predict how creditworthy you are, that is, how likely it is that you will repay a loan and make the payments when due. The most widely use credit scores are FICO scores, which were developed by Fair Isaac Company, Inc. Your score will fall between 350 (high risk) and 850 (low risk).

Mortgage rates can change from the day you apply for a loan to the day you close the transaction. If interest rates rise sharply during the application process it can increase the borrower’s mortgage payment unexpectedly. Therefore, a lender can allow the borrower to "lock-in" the loan’s interest rate guaranteeing that rate for a specified time period, often 30-60 days, sometimes for a fee.

The annual percentage rate (APR) is an interest rate reflecting the cost of a mortgage as a yearly rate. This rate is likely to be higher than the stated note rate or advertised rate on the mortgage, because it takes into account points and other credit costs. The APR allows homebuyers to compare different types of mortgages based on the annual cost for each loan. The APR is designed to measure the "true cost of a loan." It creates a level playing field for lenders. It prevents lenders from advertising a low rate and hiding fees. The APR does not affect your monthly payments. Your monthly payments are strictly a function of the interest rate and the length of the loan. Because APR calculations are effected by the various different fees charged by lenders, a loan with a lower APR is not necessarily a better rate.

In a word, a reverse mortgage is a loan. A homeowner who is 62 or older and has considerable home equity can borrow against the value of their home and receive funds as a lump sum, fixed monthly payment, or line of credit. Unlike a forward mortgage—the type used to buy a home or refinance — a reverse mortgage doesn’t require the homeowner to make any loan payments. Instead, the entire loan balance, up to a limit, becomes due and payable when the borrower dies, moves out permanently, or sells the home. Federal regulations require lenders to structure the transaction so that the loan amount won't exceed the home’s value. Even if it does, through a drop in the home’s market value or if borrower lives longer than expected, the borrower or borrower’s estate won’t be held responsible for paying the lender the difference thanks to the program's mortgage insurance.

If you plan to stay in the property for a least a few years, paying discount points to lower the loan's interest rate may be good way to lower your required monthly loan payment, and possibly increase the loan amount that you can afford to borrow. However, if you plan to stay in the property for only a year or two, your monthly savings may not be enough for it to make sense. I can calculate the cost vs. savings benefit for you!

A point is a percentage of the loan amount, or 1-point = 1% of the loan, so one point on a $100,000 loan is $1,000. Points are costs that need to be paid to a lender to get mortgage financing under specified terms. Discount points are fees used to lower the interest rate on a mortgage loan by paying some of this interest up-front. Lenders may refer to costs in terms of basic points in hundredths of a percent, 100 basis points = 1 point, or 1% of the loan amount.

It's generally a good time to refinance when mortgage rates are 2% lower than the current rate on your loan. It may be a viable option even if the interest rate difference is only 1% or less. Your savings depends on your income, budget, loan amount, and interest rate changes. I can help you calculate your options.