The Gold Standard of Home Loans

Golden Coast Loans

2 weeks ago

🏠💰 LEVERAGING HOME EQUITY TO IMPROVE YOUR FINANCES 💰🏠

Credit card balances have been skyrocketing as Americans are having to use debt and credit to fund their living expenses and thanks (or no thanks) to the Fed, rates have been increasing significantly on these balances as well. The same holds true for auto and personal loans.

Many are not aware that the Fed Funds Rate affects short term lending and inflation and then trickles down to bond pricing and mortgage rates.

If you are a homeowner with high indebtedness, there may be a solution that can also help create wealth, even if the interest rate on your current mortgage is lower than current rates.

Fortunately, home values have risen over the past several years, giving many homeowners a large amount of equity. Instead of feeling merely trapped in your home, a cash-out refinance can allow you to access this equity to pay off debt and reduce your overall monthly expenses.

The potentially substantial monthly savings can provide significant cash flow relief. Additionally, if that extra cash flow is used to accelerate payments on the new mortgage it's possible to reduce the duration of your mortgage by many years. This can create much needed wealth for many families, especially if current savings for your future are not where you would like them to be in these trying times.

One powerful statistic is that over 90% of the millionaires in our country made their wealth through real estate.

Let’s talk about your wealth building strategy, text or call us at (949) 705-7702!

NMLS #1994723
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Golden Coast Loans

2 weeks ago

🏠💰 IS AN ASSUMABLE LOAN A GOOD FINANCING OPTION? 💰🏠

What Is An Assumable Mortgage?

An assumable mortgage allows the buyer to purchase a home by taking over the seller’s mortgage loan. One reason buyers decide to buy a home with an assumable mortgage is to take advantage of lower interest rate if current rates have risen since the seller originally purchased the home.

Not all home loans are assumable and unfortunately, most conventional mortgages are not assumable. However, loans that are insured by the Federal Housing Administration (FHA) or backed by the Department of Veterans Affairs (VA) or United States Department of Agriculture (USDA) are assumable as long as specific requirements are satisfied.

It may make sense to avoid higher interest rates by assuming the seller’s loan, but more importantly it is more beneficial to review if this meets your financial goals. Assumption could increase down payments and long term costs of borrowing.

For example, if the seller currently has a $400,000 loan on their property and you offer to purchase their home at $750,000 which would mean you would need to bring in the difference of $350,000 at closing!

As always, everyone’s financial scenario is different so we always recommend checking out all your options with a professional and making an educated decision. Reach out to us at (949) 705-7702 and we would be happy to review your wealth building strategy and answer any questions you may have!

NMLS #1994723

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Golden Coast Loans

4 weeks ago

🏠💰 PURCHASE FINANCING: MORTGAGE vs CASH 💰🏠

Should you get a home mortgage, even if you can pay in cash?

There are several ways that people end up paying for a home purchase. In addition to taking out a mortgage or paying in cash (which are the two most common ways), you might use owner financing, gifts from friends or family, crowdfunding, or equity from another property. While most people may not be in a financial position where they can pay cash for a house, if you do have that luxury it does give you the benefit of having some options to consider.

Deciding whether to buy a home with cash vs. taking out a mortgage is a complicated decision with pros and cons. On the one hand, you can’t ignore the comfort with having no debt, including a home mortgage. On the other hand, there are also compelling reasons to save your cash:

• Having all of your money tied up in your house could leave you "house rich and cash poor”

• Your cash converts to a non-liquid asset

• You could lose out on future opportunities with that cash

• You could potentially get a higher return by investing that cash in the stock market or other investments

• You may miss out on some tax savings such as the interest deduction from your paid mortgage interest

There is no one single right answer to this question as everyone’s financial goals vary. Give us a call at (949) 705-7702 so we can examine the pros and cons together to make the best decision for your specific financial situation!

NMLS #1994723

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Golden Coast Loans

1 month ago

🏠💰 REVERSE MORTGAGE FACT/FICTION? 💰🏠

The Home Equity Conversion Mortgage (HECM) program has come a long way since it was passed by the 100th U.S. Congress and signed into law by President Ronald Reagan. A steady stream of product safeguards and consumer protections have been rolled out on a regular basis during that time. However even today, per a Mutual of Omaha survey report, nearly three-quarters (74%) of respondents show they have little or no knowledge about reverse mortgages while at the same time revealing misconceptions about how they work.

The most predominant myth reported is that the “bank gets the house,” when in reality the heirs have the option of paying back the loan to keep the home or sell it to satisfy the debt and the heirs keep the remaining sale proceeds.

Another myth is that a borrower would have to “leave the home before [they’re] finished using it,” but it would take a maturity event — such as a borrower becoming delinquent on property taxes, homeowner’s insurance, or maintenance of the property — to displace a borrower.

There is also a myth about monthly payments on a reverse mortgage being required but unlike a traditional mortgage, a reverse mortgage doesn’t require any monthly payments, which means the house will not be foreclosed on due to missed payments. The only requirements for the homeowner are to pay the taxes, insurance and HOA fees (if applicable) and to maintain the condition of the property, just like any mortgage.

Reverse mortgages are powerful loans and a solution for many to stay in their home while freeing up their mortgage payment expenditure to spend more time with loved ones, travel, or improve monthly finances. Give us a call today at (949) 705-7702 to see how a reverse mortgage could improve your quality of life!

NMLS #1994723
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Golden Coast Loans

1 month ago

🏠💰 IS A FORECLOSURE WAVE COMING? 💰🏠

Most of us remember the wave of short sales and foreclosures in the real estate market back in early 2010 which was caused by a multitude of reasons. The media has tried to recreate that concern again recently because of the rise in mortgage interest rates. Will this happen again and should you wait to purchase a home until it does?

The Mortgage Bankers Association recently released data showing the US mortgage delinquency rates fell to 3.37% at the end of the second quarter of 2023, this is the lowest level since data has been collected on this factor (1979). What this tells us is that even though interest rates have aggressively increased, the job market is still strong and many homeowners are still paying interest rates well below current market rates. Unlike in 2010, most of the loans over the past decade have been fixed rate terms instead of adjustable rate terms so there is no drastic increase to the mortgage payments that would cause a financial hardship to trigger short sales/ foreclosures while appreciation in home values has given homeowners growing equity.

Even with the increased rates, home values are still expected to to continue to appreciate between 6%-10% this year alone!

The data is in- the best time to purchase your home was yesterday, the second best time is today. Give us a call or text to (949) 705-7702 and let us help put you on a plan to build your wealth through homeownership!

NMLS #1994723

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