Galen Call Reverse Mortgage Specialist Monterey California

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Galen Call January 2, 2014 1 Comment

Face The Numbers, A Mortgage That Works For You

Face The Numbers, A Mortgage That Works For YouBefore taking out a mortgage to buy a home, it’s time to take a realistic survey of your finances so that you can determine your price range and what size of home you can comfortably afford. If you are 62 or over a purchase using reverse mortgage may be a wise option to consider.

Buying a home that suits your finances will mean that your mortgage payments will be easily within your budget and won’t cause you financial stress. A reverse mortgage purchase money loan however does not require principal and interest payments.

Stay In Your Price Range

Many people, when offered a large mortgage by the bank, are tempted to buy homes that are outside of their price range.

It’s easy to see why a larger property or a more luxurious home might be appealing, but by stretching too far beyond your means you are courting with disaster.

If your monthly mortgage rate just barely fits within your budget, without room for savings, retirement contributions, or to build up an emergency fund – it will only be a matter of time before things start to get tight. A reverse mortgage purchase money loan can be the way to save for retirement or protect funds already under management; it can be part of your financial plan.

What happens if you lose your job, or if your income decreases? If you are unable to meet your mortgage payments, it is easy to slip very quickly into debt or even bankruptcy. This is why it is so crucial to buy a home that fits your budget. A reverse mortgage purchase money loan is a way to hedge against  potential income loss.

Here Are Some Questions To Ask Yourself For Figuring Out How Much Mortgage You Can Comfortably Afford:

  • Make a detailed budget that chronicles your monthly incomings and outgoings. How much money do you really have each month to work with?
  • What type of safety net do you have if something goes wrong, in terms of savings and family support?
  • How large of a down payment are you able to save up? At least 20% of the property cost is recommended, but more is always better. The down payment for a reverse mortgage purchase is higher than a traditional loan but you are not required to make monthly payments.
  • How much outstanding debt do you have from your other lenders, such as your credit card debts, your bank loans, student loans, etc?
  • How stable is your income? Do you have a steady paycheck or are you self-employed with variable income? Self employed consumers 62 yrs and older would benefit with a reverse mortgage purchase.
  • Are you willing to change your lifestyle and lead a more frugal life to get the house you want? Is there anywhere you can cut expenses and spend more on your mortgage payment?
  • What will be the total of all of the costs associated with purchasing the home, including closing costs, inspections and other fees?
  • What are the costs associated with moving? Don’t forget to include the moving van, new appliances, hotel expenses, gas and meals out during the transition period.

Once you have asked yourself these questions and taken a close look at your budget, you will be able to determine realistically what you can afford when buying a home – so that you can find that dream home that meets your budget. Your first step towards a purchase  for more helpful advice,  is to contact your trusted mortgage professional.  I look forward to speaking with you!

Filed Under: Home Mortgage Tips Tagged With: Home Mortgage Tips, Home Prices, Mortgage Rates

About Galen Call

Galen Call is a Certified Reverse Mortgage Professional (CRMP) in Monterey, California. She manages the Reverse Mortgage Division at TreeHouse Mortgage Group, a Division of American Pacific Mortgage Corporation (CALDRE #01215943 | NMLS# 1850). Galen can be reached at 831-645-1164 or by email.

Galen has been originating reverse mortgage loans since 2006 and active in the mortgage lending industry since 2003. She helps clients aged 62 and older with Home Equity Conversion Mortgages (HECM) and proprietary jumbo reverse mortgage loans. Galen brings a proactive and collaborative approach to reverse mortgage lending.

Comments

  1. rate mortgage says

    March 29, 2014 at 8:38 pm

    But the banks just could not foresee the defaults that happened not only in the country
    of Australia but rather became a phenomenon all acrozs the world.

    As a result, many lenders are now offering offset home loans that are increasingly competitive and also more affordable for the average homebuyer.
    Though the fixed-rate mortgage is more common to obtain, it doesn’t mean that an adjustable-rate mortgaage is not a good investment
    too make.

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GALEN CALL
Manager, Reverse Mortgage Division
American Pacific Mortgage Corporation
dba TreeHouse Mortgage Group
Call Today: 831-645-1164
Fax: 831-643-1161
Galen@TreeHouseMortgage.com
NMLS #226129 | DRE #00908338
APMC DRE #01215943 | APMC NMLS #1850

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