The reverse mortgages were designed for middle class borrowers and even borrowers who
are lower on the income scale so they could keep their house and live out their life where
they hoped to live.  Unfortunately the wealthy understand the use of money while the rest of
the population are trying to make more money, and are very skeptical of new ideas.
    Open your mind to the possibilities of a reverse mortgage.  First of all you do not pay your mortgage at all.  If your monthly payment on a fixed mortgage is $1620 a month, and you live
at your house for an additional 7 years, you would pay $136,000 over the seven years.  When you are making those payments you do not know if the house will increase by $136,000 so you can stay even.  But that is also faulty reasoning because your mortgage will not be reduced by that amount.  The payment is made up of principal and interest.  Interest payments do not decrease the balance on your mortgage.
     If you take the reverse mortgage, which allows you to not make the mortgage payment, you can invest the entire aforementioned $136,000, and all if it will count as principal.  Do not over reach with this money because you will be ahead if you have every dollar earn some money in
the investment.
     Meanwhile you will be accruing  interest on your reverse mortgage which will be added to the reverse loan.  You will owe more than you did when you started the reverse mortgage when you decide leave the property When you leave the property the mortgage has to be paid, refinance or sold.  You also can walk away if it isn’t worth what you owe, because the lender, FHA, cannot collect on any short fall from a lower value than it needed to be worth to break even.
    Now the TWO BIGGEST points: (1) If your house has equity in it when you are ready to move from the property you can pay off the place with a loan or your own money, or you or your he can sell it and keep the profit. (2)  If the property is not worth owning as it is worth less than you owe, you can walk away without any recourse to you.  Houses do lose value at certain times in this country and you will see how smart you were to take the reverse. If you used your prior monthly payment that worked out financially you are even smarter than you thought. This action is called “Leverage”.
    If you or your spouse, if you have one, are 62 years of age, or older,  and own a house you are qualified to take a reverse mortgage.  You can also buy a house with the use of a Reverse
Mortgage.  As a senior citizen you should at least look at a Reverse Mortgage and see if it
works for you.
I am hoping that you care what is going to happen in the near future if you own a house, or are thinking about buying one.  What happens to the stock market and the Fed’s monetary policy will have direct consequence for you.  So it is up to you to try and figure out what might happen.
The stock market is at all time highs without any realistic reason except that the Federal Reserve has interest rates at just about zero, so the big traders, funds and banks can
afford to stay in the stock market with the money they borrow. Why is that?  Because there is almost no cost for carrying the securities they hold.  The election that takes place in just about a month should  change what is going on
The taxes we pay now are all subject to change.   Both sides of the political aisle have big plans that will have significance in different ways for all of us.
You need to take an educated guess as to what might go on once we know who is going to
be the President and start setting your finances on course that will help them grow if you are in tune with the new financial developments  It isn’t guess work but you can research your ideas to try to fit your goals and ideas of the new President.
It will be time in about a month to take the reins and steer your finances as best as you can.  to get the best you can from the incoming new administration.  Your financial future is at stake so do what you have to, and hopefully you will prosper.
Remember that your luck may be just good enough to improve your future wealth.  Luck however, is not a strategy.  Don’t count on it.
When you take out a mortgage you can deduct the mortgage interest up to a loan of $1,100,000
loan balance. That certainly saves you a good amount of income tax.  Now suppose you have a $500,000 loan on your primary residence and you also have a balance of $48,000 on your credit card(s).  If you were to refinance your primary residence which has a $500,000 current loan you can pull out $75,000 to pay off the credit cards and have some reserves. You now can deduct the credit cards as well  

That maneuver is allowed if the loan to value on your new loan fits the loan limits. You cannot pull out over $100,000 above your current loan balance and you will not have a loan  any larger than
The ability to deduct your payment from your tax liability will start paying dividends immediately.-You need to find all the gifts the lenders and the IRS are willing to give you.
Let us show you what we know.
If you are at least 62 years of age and own a house with or without a current mortgage on it you might be able to procure a “reverse mortgage”.  It will depend on your age and your equity to determine you have enough equity to pay off your current mortgage, if you have one.  If you don’t have a mortgage you will receive cash from your property. If you have a mortgage you will have it paid off and can still get cash from the property
In either case you will not ever make a mortgage payment while you are in your house.  The interest on the new reverse mortgage while accrue until you leave your property and you or your heirs will owe the balance.  If the value of the house is higher than the mortgage you or your heirs can sell the house, or pay off the reverse mortgage and keep the house.  If you or
they do not want to have the house you send the keys back to the reverse mortgage lender
and relinquish the house to that lender. No money will be required.
Not having payments is the reason to take the property and even if the property starts falling in value you will still get your monthly payment without any liability to you or your heirs EVER!
-Your heirs will be concerned so I will show you what they get.  When you get the reverse mortgage you do not give up your ownership rights including the increase in value of the property until you leave the house.  This is akin to have a option for the heirs, without paying for one.  If the house goes up the heirs will most likely move into it or sell it sand keep the profit.  They aren’t paying anything along the way to have this option.
If the house goes down they can refuse to buy it and it goes to the lender.  They don’t lose
anything because they aren’t paying for this option either.  These options aren’t the only benefit for the heirs.  I will follow up shortly with more goodies!
It is time to find out about this terrific mortgage.  Making mortgage payments aren’t required
and either is your worrying!

Monday: The most important feature of the home loan is the term, not the interest rate.
The term dictates the normal amount paid by the borrowers on their house, as they
strive to pay it off. A shorter term means less payments.

Tuesday: Even though the 30 year fixed has dropped lower than your 30 year fixed it will
cost you money if you refinance to the lower interest rate, because you start the 30 years of
payments all over again.. If you wish to refinance you can take a shorter amortization or take the lower 30 year fixed but keep the same monthly payment you currently have.

Wednesday: Today’s taxes on the profit on the sale of your house has a provision that will yield you, and or your spouse, special savings if you have lived in the current house for two consecutive years. If you are single the first $250,000 in profit will not be subject to federal taxes;
if you are married the first $500,000 in profit will not be subject to taxes.

Thursday: If you have a low loan to value you should try to take cash out of the property
and pay your much higher interest credit cards. This gets you a better balance sheet and lower
income taxes..

Friday: If you are going to pull cash out of your residence or any other real estate project
for the express purpose of remodeling your property, check your plans with a builder, architect,
designer, home decorator, a realtor and who ever else you can think of that can validate your
idea. You don’t want to take money and end up making the current place less valuable.

The first week of headline ideas to help the consumer. Let me know your thoughts.

When I was a young married man with a very young family, I found myself so deeply in debt that my goal was simply to get even. Eventually I got there and it was then that I realized  that getting even is not enough.  We are not built to get even; we are built to get everything we can get while applying our trade.
Think about it!  You certainly aren’t thrilled if you go to see a sporting event and it ends in a tie.
If you decide to make a wager you certainly aren’t excited if you get your money back.  When you go to work in the morning you don’t hope to come out even; you are looking for a profit.
You need to do more than simply live in the house you own, especially if your house is in a growing area.  If you were smart enough, or lucky enough to get into this great area you owe it
to yourself to take all the advantage you can to help grow your net worth.  Don’t waste the time  without preparing for your senior years while the opportunity is right where you are.
What steps can you take to be sure you’re heading upward, past even?
  1. Make a plan and own it.
  2. Review and revise your plan periodically.  Adapt to change circumstances.
  3. Reach your goals in stages if necessary. Do what you need to do to survive,
      but once you’re stable you need to rethink your position.  For instance you may have
      to go with a longer term variable mortgage for a period of time.  Once you get through the
      crisis start looking at shorter term loan, as the 15 year fixed.  This loan will get you going
  4. Don’t forget to maintain reserves.  Aim for six months to a year of liquid assets.
  5  Press your advantage.  When the economic climate is right, use leverage to strengthen
      your financial position.  When circumstances change, pull back and stay on the defense.
      Real estate interest rates are a good gauge of current economic conditions.
   6.Think positive.  An optimistic outlook often results in a much better outcome.
Stay focused on your plan, but don’t be afraid to make changes. They have erasers on
pencils for a reason!  Your the Captain of the Ship: bring it back in the best shape you can.
I have been married twice in my life and have always been interested in housing.  I bought six houses with my first wife over an approximately 21 years.  The last house I bought  was the first one I bought as a licensed real estate broker in California.
I remarried and  bought 2 primary residences and 12 second homes. That gives me a grand total of 20 homes in 43 years.
I also have several steady customers that I have bought 15 houses for one of the clients and approximately 7 for the other client. I also have a long term friend who was a builder until he retired and I sold the last house he built 3 times over during last 15 year period.
The evolution of my ideas for purchasing houses comes entirely from my experience in the business.  There are 3 rules I use when showing people houses that have worked continuously
over the time period I have spent in the real estate industry.
                   1.  People do not know what they want in the type of house they are seeking.
                   2.  Although they are always sure, and it is their #1 priority, the location loses
                        important pretty quickly almost every time.
                   3.  Money is always a sticking point, that goes away easily for the right house.
I will relate a story about one of my clients of about 30 years.  The couple hadn’t been married to long when they came to me and told me their house was too small and they wanted a certain type of house in a vey nice area close to where they were living and gave me a budget.  I wasn’t able to put there wishes into a sparkling new place for them  The husband said he would give me 6 things he wanted and if I could find them he would buy the house. He gave me the list and I went to work.
They got the “dream house”  and at a party a few months ago I asked the husband if he remembered the list.  He said he remembered the list but couldn’t recollect what was on it.  I told him to sit down and relax and I would tell him what was on it. He did. The list contained the size and design of the desired house: ranch style, one story.  It had the approximate location, south of the main boulevard.  It couldn’t be near the freeway and have easy access.  Last but not least it would be less than $1 million.
The house they bought and still live in is a two story Tudor, north of the main boulevard,
a pitching wedge to the freeway with almost a one lane road in front of the house that cost
50% more than he wanted to pay.
THIS EXAMPLE IS NOT THE EXCEPTION:  It just happens this way almost all the time.
Thanks for reading How To Buy A House The Right Way

homeBuying a house to live in is a great thought but just half of an idea. It is at least 3 or 4 decades that home buyers have been looking for more than a house to live in, and more importantly, one to to invest in. The truth behind what I just said can be proven by simply talking to friends and acquaintances about their house. You will not get an answer from the past; 3 bedrooms and a nice backyard, which gives us room to expand when we enlarge our family!

That answer would have been right on in the ’70’s or ’80’s but not today. Most of the younger homeowners are excited by their home, but deep down they are over joyed with opportunity to make money while living in a necessity: their house. They are aware of their neighborhood and its financial potential while they are raising there family, but secretly calculating their future.

There are many ways to make the pleasure of your house become the treasure of your family. Certain types of loans can help give you the formula for success; while other tools
such as the tax code can give you another solution. Unfortunately many don’t think about other options.

A great option is the opportunity to sell your house and get profits $250,000 for single owners; and $500,000 for married without any federal income taxes on the profit. All you need to do is live in the house for at least 2 years as your owner occupied house, and have profits of $250,000 to $500,000, Best of all you don’t have to live in the property the last two years. You just need to have lived in the house any consecutive 2 years during the time you have owned that house.

If you don’t want to sell the house you can refinance, pull some cash out, and buy a second home or rental which will give you pleasure, profit and in many cases both. Because the youth of today are not maturing as fast as we did they are more than content to live in a rental. Rentals are in big demand and rents are going through the roof.

There are still many other ways to make your house pay, such as trading it for units , two to four, and occupy one and rent the rest. If you are in the right area you can completely upgrade your house for a quick sale, or to enhance the home as a rental. You can take a reverse mortgage and make no more mortgage payments for life.

If you have time explore your neighborhood and see what you might find to enhance your property. After all you were smart enough to get there so don’t stop now.

As per usual we are ready to help you embolden your dream!

The answer for the title question is both good and bad. The reason I bring this up is the confusion I have seen over the last 3 decades because not everyone has a financial background and it doesn’t seem to bother them. The way I wrote this is pretty clear: if you have a mortgage on your home it means you owe money to the lender; if you wrote a mortgage for a borrower it means that you own the mortgage and will collect the interest and principal throughout the time period it will take the borrower to pay the money back to you.

The interest payments one makes while paying off the mortgage are generally tax deductible and this amount will be written off against your earnings which will help lower your income tax. The borrower’s money you receive while owning the mortgage both reduces the borrower’s debt, while it also gives you a profit on the money you gave them until it is paid off.

If you are interested in making money you need to own the debt; if you are interested in leveraging your purchases then you will use the debt. In either case
you should be careful in how much you borrow because debt is not good in the long run and equity, which can include holding debt, is what you need to have a smooth financial life.

When you first buy a house and take a mortgage you should set the payback of the mortgage as quick as possible. Paying debt off is certainly not the same as
receiving mortgage payments. Having debt holds you back; owning debt gets you going in the right direction. Keeping that in your mind will keep you heading in the right direction.

home_sale_tax_liabilityI don’t imagine that the title is a surprise to you, but what I surmise will be. The election will take place on the first Tuesday of November and might just give you the impetuous to make a move that can help you get tax free money and also help you with your retirement. SO WHY NOT READ ON!

If you live in your owner occupied residential property, and will be there 2 years by the time this election takes place you can sell your owner occupied property and get the first $250,000 tax free if you are single or $500,000 if you are married. Let me say it again: no tax on the first $250,000 of profit from the sale if you are single; $500,000 if you are married.

Now you might wonder why this is such a big deal. Our nation is deep in debt of which you and I are going to have to help bail us out. One way of us helping, without anyone asking for our help, is to raise taxes. The politicians will most likely not miss the opportunity to get rid of this amazing tax shelter and put back the capital gains tax.

Sell your house and put the $250,000 to $500,000 into the bank, an annuity or a vehicle
that isn’t speculative. Then buy another place with a reverse mortgage, if you are 62 or older, a smaller place with a minimum down payment or even units, 2 to 4,units where you can live, collect the rents and help them pay for your mortgage.

Having a lump sum of money is not for bragging rights, but for living right: less pressure or even no pressure leads to a longer life. :Pick a date and get it done and it will be another great anniversary as your marriage, your children’s birth or even your great granddaughters

Let me know if you have any questions and be sure to let me know when your transaction is
complete. I love success stories!