George L. Duarte - Mortgage Loans Fremont California Horizon Financial Associates

The Top 3 Reasons To Invest In A Reverse Mortgage For seniors who have equity built up in their home, they might have heard about something called a reverse mortgage. There are plenty of TV commercials for reverse mortgages; however, there is still a lot of confusion regarding what they are.

Simply put, many seniors have already paid off their homes completely. With a reverse mortgage, people can access the equity they have in their home and use this as a quick source of cash. Then, they can pay back this loan when they can without giving up ownership of their home. Who should use this tool? There are a few reasons to note.

A Quick Source Of Cash Without Great Credit

For those who don’t have a strong credit score but need a quick source of cash, a reverse mortgage might be a great option. Many people stop paying attention to their credit score in their later years, thinking they will not need to take out a loan again; however, life can throw surprises at people and a reverse mortgage can help people access cash quickly without having to apply for a formal loan.

A Flexible Source Of Money

There are many people who think that a reverse mortgage can only be used for housing expenses. This is not the case. In reality, people can use a reverse mortgage to pay for just about anything. One of the most common uses of a reverse mortgage is to cover medical bills. Medical bills are among the most common unexpected expenses and if a medical bill comes up, then a reverse mortgage can be used to pay it off.

A Loan With Flexible Repayment Terms

Finally, a reverse mortgage is a loan that provides flexible repayment terms. With a reverse mortgage, there is no need to pay the loan off in full until the home is sold, the owners move out, or the owners pass away. In this case, when the home is sold, some of the money is used to pay back the reverse mortgage.

Consider A Reverse Mortgage

For some people, a reverse mortgage can be an effective financial tool. It is critical for everyone to evaluate all of their financial options and choose the one that is right for them.

What's Ahead For Mortgage Rates This Week - August 31, 2020 Last week’s economic news included readings from Case-Shiller Home Price Indices, along with data on new and pending home sales. Weekly readings on mortgage rates and new and continuing jobless claims were also published.

Case-Shiller: Home Price GrowthHolds Steady in June

National home prices grew at a seasonally-adjusted annual pace of 4.30 percent in June, which was unchanged from May’s year-over-year growth rate for home prices. The 20-City Home Price Index rose by 3.50 percent year-over-year in June.

Phoenix, Arizona reported the leading year-over-year home price growth rate of 9.00 percent. Seattle, Washington held second place with a year-over-year home price growth rate of 6.50 percent. Home prices in Tampa, Florida grew at a year-over-year pace of 5.90 percent.

Home price growth rates rose in five of 19 cities reported in the 20-City Index; the Wayne County Michigan metro area did not report for June’s 20-City Home Price Index.

New Home Sales Rise as Pending Home Sales Dip in July

Sales of new homes rose for the third consecutive month in July according to the U.S. Census Bureau. July’s reading of 901,000 new homes sold on a seasonally adjusted annual basis was the highest pace of sales since 2006. Sales of new homes were 36 percent higher year-over-year. Slim inventories of pre-owned homes for sale and low mortgage rates boosted new home sales, but analysts said that builders also face headwinds including higher materials costs and affordability.

Pending home sales dropped in July from June’s year-over-year reading of 15.80 percent to July’s reading of 5.80 percent. Ongoing concerns over COVID-19, high unemployment rates and, concerns over jobs have caused would-be-homebuyers to delay their home purchase plans.

Mortgage Rates, Jobless Claims Fall

Freddie Mac reported lower rates for fixed-rate mortgages last week with the average rate for 30-year fixed-rate mortgages falling by eight basis points to 2.91 percent. The average rate for 15-year fixed-rate mortgages also fell by eight basis points to 2.46 percent. Rates for 5/1 adjustable rate mortgages averaged 2.91 percent and were unchanged from the prior week.

New jobless claims fell to 1.01 million claims filed from the prior week’s reading of 1.10 million initial claims filed. Continuing jobless claims were also lower with 14.54 million continuing claims filed as compared to the previous week’s reading of 14.76 million continuing jobless claims filed.

What’s Ahead

This week’s scheduled economic reports include readings on construction spending, private and public sector jobs growth, and the national unemployment rate. Weekly reports on mortgage rates and jobless claims will also be released.

The Top 3 Reasons To Invest In A Reverse Mortgage

What’s Ahead For Mortgage Rates This Week – August 31, 2020

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