Eugene/Springfield Reverse Mortgage program could change Friday

Posted on March 28, 2011 by Fred Chamberlin

Changes in Regulation Z, Truth-in-Lending, take place Friday without intervention of the courts. This could have a huge effect on Reverse Mortgages in the Eugene/Springfield Oregon area.

There are a couple of lawsuits, complete with temporary restraining orders, being reviewed currently that could slow or stop the implementation of the change Reg Z makes in loan officer compensation. At this point, we are not certain of the effect this change will have on reverse mortgages going forward.

What we do know, is that Bank of America has announced they are getting out of reverse mortgages and that Wells Fargo has done nearly the same by closing their wholesale channel for reverse mortgages. Other lenders may be following suit.

Keep watching our site and we will keep you posted with all of the current information about reverse mortgages. Also, if you are interested, it might not be a bad idea to start the process while there are still lenders offering the program.

If you have questions about a Reverse Mortgage we will not pressure you to take one out, but it may be in your best interest to check out one now, rather than later. Please contact one of us today at 541-342-7576. Alpine Mortgage Planning is located at 1200 Executive Pkwy., Ste. 100, Eugene OR 97401. You can also e-mail Laurie here or Fred here. We are here to help you make the decision that is right for you. Reverse Mortgages are not for everyone, but they are an excellent choice for some people. Isn’t it time that you checked out the advantages of a Reverse Mortgage?

Deferred Property Taxes Payable with Oregon Reverse Mortgage

Posted on February 16, 2010 by Fred Chamberlin

Senior Citizens that have deferred their taxes on their property will (probably) have to pay their taxes current if they are taking out an Oregon Reverse Mortgage. Additionally, if they get the Oregon Reverse Mortgage after April 15, they will (probably) need to pay the current year’s property taxes also. This is also true for a normal refinance.

Oregon Deferral Property Tax Account

If you are considering refinancing or a reverse mortgage, it may affect your deferral account:
Your lender may require a first lien position because of a loan transaction for a refinance, reverse mortgage, or another type of loan. In order for this to happen, you must first cancel your deferral account and pay in full so that the Department of Revenue can release the lien.
Once we receive payment in full from a title company or financial institution to payoff your current deferral account, and a signed, dated cancel statement, the lien against the property will be released. If you don’t submit both a signed cancel statement and full payment to close your deferral account, the department’s lien will remain in place and may jeopardize your loan. Please contact your lender if you have any questions regarding their lien position requirements.
After your refinance or reverse mortgage is complete, then you may reapply for the deferral program by submitting a new application form. The application must be submitted between January 1 – April 15.
If your application is received after April 15, you will be responsible to pay the current year’s property taxes to the county on November 15. You may contact the county or Deferral Unit to request an application booklet
Make check payable to the Department of Revenue and mail to PO Box 14380, Salem OR 97309.
Please include the or deferral reference (account) number or Social Security number on the payment.

If you have questions about a Reverse Mortgage, please contact one of us today at 541-342-7576. Alpine Mortgage Planning is located at 1200 Executive Pkwy., Ste. 100, Eugene OR 97401. You can also e-mail Laurie here or Fred here. We are here to help you make the decision that is right for you. Reverse Mortgages are not for everyone, but they are an excellent choice for some people. Isn’t it time that you checked out the advantages of a Reverse Mortgage?

Reverse Mortgage Property Tax Deferral Option Available in Oregon

Posted on February 15, 2010 by Fred Chamberlin

I am not sure how many senior citizens are aware that they have the option of deferring their property tax payments but they do. If you are interested in an Oregon Reverse Mortgage and still worried about how they are going to pay their property taxes after taking out an Oregon Reverse Mortgage, this information could be of interest you. Make sure you determine that your are eligible for the Oregon Reverse Mortgage and the deferred taxes.

Oregon Tax Deferral Qualifications

Oregon provides property tax relief for qualified senior citizens.
To qualify:

On or before April 15 of the year you file the application:

If you are married and apply jointly with your spouse or registered domestic partner (RDP), you both must be 62 years old or older; if only one applicant is 62, you must apply as an individual.

Joint applicants. You must own or be buying the property together.

You must have a recorded deed to the property or you must be buying the property under a recorded sales contract. You may have a revocable trust. You are not eligible if you have a life estate interest in the property. A life estate is when you live on the property but do not own the property.

You must live on the property; however, you may live away from the property because of medical reasons. You must send a medical statement on letterhead from your health care provider to DOR (the exact medical condition is not needed).

Household income must be less than $38,500 for income tax year 2009. This includes taxable and nontaxable income, including Social Security and pensions. This is not the federal adjusted income (FAGI) amount. This income limit may change each year.

If you have filed for an income tax extension, attach copies of documentation (i.e., W-2s, 1099s, federal tax return, etc.)

If, after your initial approval, DOR discovers additional information on your household income that was not included on your application, you may be disqualified from the program and receive a billing notice.

On manufactured structures, a $55 fee will be charged to your account for DOR to become a security interest holder, and the cost of recording the lien and the manufactured structure fee will be deferred.

Portland Oregon Tops the List of Top U.S. Cities for Seniors

Posted on January 27, 2010 by Fred Chamberlin

Oregon’s largest city, Portland offers the best senior living benefits in the U.S, according to a recent survey produced by a partnership between Bankers Life and Casualty Company and Sperling’s BestPlaces. It is likely that the Eugene/Springfield was too small for the competition, but those of us living here think it is a pretty darn nice place to live.

Seattle, San Francisco, Pittsburg and Milwaukee rounded out the top 5.

What Makes a City Good for Senior Living?

Health: includes criteria such as physician-to-senior ratio, gerontologist-to-senior ratio, hospitals per capita, and the availability of adult day care, assisted living facilities, continuing care (CCRC) facilities, independent living facilities, nursing homes, and senior meals. With the additional of the new Sacred Heart Medical Center, I think Eugene/Springfield would rate well in this area.

Disease: covers life expectancy, age 85 expectancy, and rates of depression, heart disease, and cancer. Sometimes when it rains for several days in a row here, it just seems our life is longer. LOL

Economics: includes consumer prices, sales taxes, unemployment rate, and recent job growth. Larger cities like Portland definitely have the economics of scale that are missing in a smaller, albeit, more comfortable community like Eugene/Springfield.

Social: identifies the percentage of seniors in the community and availability of entertainment opportunities, the arts, museums, education, recreation, colleges, and libraries. This is one area I think we excel with the number of college campuses here, including the University of Oregon and artistic expansion like the Hult Center for the performing arts.

Environmental: assesses the number of sunny days, measurements of clean air and water, risk of natural disasters, and the presence of ocean coastline, rivers and lakes, and national parks. In this area, I think we beat Portland. We have all that they do and less traffic.

Spiritual: looks at the percentage of the population belonging to organized religions, and the number of religious congregations in the community. Got you covered here too.

Transportation: rates the availability of public transportation and special access transportation, along with commuting times. Our LTD system is constantly getting better, now with the EMX shortly expanding to the Gateway Mall and Sacred Heart area.

Housing: includes cost of living, median home price, property taxes and monthly apartment rent. Housing prices in Lane County have been dropping and talking to several rental management companies, so are rents.

Crime: ranks incidents of violent crime and property crime. Like anywhere, parts of Lane County are worse than others, but Springfield recently built a new jail that is helping the crime rate and we have some outstanding police officers all through the county.

In a news release about the survey, Bankers’ Chief Operating Officer Scott Perry said the senior living survey results included some cities that are not often associated with senior living.

That’s because we weren’t looking for the best places to be retired, but the best cities for seniors regardless of whether they are retired, working, active or not, healthy or not,” he said. “It’s about more than golf courses and tennis courts.

FHA UFMIP stays the same for Oregon Reverse Mortgage

Posted on January 21, 2010 by Fred Chamberlin

FHA announced the Up Front Mortgage Insurance Premium (UFMIP) would change in April for FHA purchase money and full credit and streamline refinances with an increase of 50 basis points, or an increase of 1/2 percent from 1.75% to 2.25%. There is no change in the UFMIP for reverse mortgages with this announcement. This could change and have an effect on Oregon Reverse Mortgages in the future, but for now, no news is good news.

At least for now, the UFMIP will be the same as before for Reverse Mortgages.

Is an Oregon Reverse Mortgage Right for You?

Posted on December 14, 2009 by Fred Chamberlin

Top 10 Things to Know if You’re Interested in a Reverse Mortgage

By Laurie Willis

Oregon Reverse mortgages are becoming popular in Oregon and in America. HUD’s Federal Housing Administration (FHA) created one of the first. The Home Equity Conversion Mortgage (HECM) is FHA’s reverse mortgage program which enables you to withdraw some of the equity in your home. The HECM is a safe plan that can give older Americans greater financial security. Many seniors use it to supplement social security, meet unexpected medical expenses, make home improvements and more. Since your home is probably your largest single investment, it’s smart to know more about reverse mortgages and decide if one is right for you.

1. What is a Reverse Mortgage?

It’s a loan against your home that requires no repayment for as long as you live there. A reverse mortgage allows you to convert a portion of the equity in your home into cash. Unlike a traditional home loan, no repayment is required until the borrower(s) no longer use the home as their primary residence.

2. How do I Qualify for a Reverse Mortgage?

To be eligible for a reverse mortgage all borrowers must be 62 years of age or older. You must own your home outright, or have a low mortgage balance that can be paid off with proceeds from the reverse loan, and you must live in the home 6 months of the year.

3. What types of homes are eligible?

Your home must be a single-family property, PUD, or a 1-4 unit home with one unit occupied by the borrower(s). HUD-approved condominiums and manufactured homes that meet FHA requirements are also eligible.

4. What’s the difference between a Reverse Mortgage and a bank home equity loan?

With a traditional second mortgage, or home equity line of credit you must document you income and ability to repay the loan. There are also minimum credit score requirements for loan qualification, and you are required to make monthly mortgage payments. The reverse mortgage is different in that it pays you, and is available regardless of your current income or credit scores.

5. Can the lender take my home away if I outlive the loan?

No. You do not need to repay the loan as long as you or one of the borrowers continues to live in the house and keeps the taxes and insurance current. You can never owe more than the value of your home at the time you or your heirs sell the home.

6. Will I still have an estate to leave my heirs?

When you sell your home, you or your estate will repay the cash you received from the reverse mortgage, plus interest and other fees to the lender. The remaining equity in your home, if any belongs to you or to your heirs. Remember, reverse mortgages are generally ‘non-recourse’ loans, which means the lender does not have recourse to anything other than your home, not your income, your assets, or your heirs income or assets.

7. How much money can I get from my home?

The amount you can borrow depends on your age, the current interest rate, and the appraised value of your home or FHA’s mortgage limits for your area, whichever is less. Generally, the more valuable your home is, the older you are, the lower the interest, the more you can borrow.

8. Should I use and estate planning service to find a reverse mortgage?

FHA does NOT recommend using any service that charges a fee for referring a borrower to and FHA lender. FHA provides the information for free, and HUD-approved housing counseling agencies are available for a very low cost. In fact, counseling is a HUD requirement before borrowers can start the reverse mortgage borrowing process.

9. How do I receive my payment?

In the past, there were many options to receiving payment. However, most reverse mortgage lenders are limiting the rate/term for reverse mortgages to a fixed rate only, which requires the borrow to receive a lump sum payment upon closing

10. Can I use a Reverse Mortgage to Purchase a Home?

Yes, effective January 2009 you can now qualify to use a reverse mortgage to purchase a home if you are 62 or older and plan to live in the property as your primary residence. The program was designed to allow seniors to purchase a new primary residence and obtain a reverse mortgage within a single transaction. The program was also designed to enable senior homeowners to relocate to other geographical areas to be closer to family members or downsize to homes that meet their physical needs.

There’s a lot of information and misinformation available out there on reverse mortgages. Please feel free to call me (Laurie) or e-mail if you want the straight scoop about an Oregon reverse mortgage and whether or not it may be right for you. (Note: This was prepared by Laurie Willis, Senior Mortgage Advisor with Alpine Mortgage Planning in Eugene. She is very knowledgeable in Reverse Mortgages and I (Fred) work with her exclusively on a reverse mortgages. It is always best to have the best, especially in something as controversial and having so much misinformation about it as an Oregon reverse mortgage. You can reach Laurie directly at 541-342-7576.)

Oregon Reverse Mortgage Information

Reverse Mortgage Information for Oregon Seniors

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