Ready for Business M
What The Heck Is A HECM
Today I want to introduce you to Jim Heberle. He’s my mortgage advisor and he’s helped many of my clients from all walks of life purchase or refinance homes. I’ve asked him to write about a loan program specifically for seniors age 62+, which can open many doors of opportunity for eligible seniors. So if you or any senior you know are concerned about affording retirement, moving to be closer to children, or wanting to refinance a home to free up cash to buy investment property, then hear what Jim has to say about the HECM.
A gift by any other name… There are good four-letter words and then some not-so-good four-letter words. Good ones that come to mind are ease and gift and love and kids and time and HECM. I’ll take a pass on thinking of the bad ones. Technically, HECM is not a word but an acronym for Home Equity Conversion Mortgage. It is the new version of the old Reverse Mortgage of years ago. There were some negatives about a Reverse Mortgage that received a great deal of attention, and the HECM was created to right some of those negatives. The HECM is now a very good option for elderly folk (age 62+) to combine a lot of good four-letter words. The first mentioned, ease, because a HECM, either via a refinance of an existing home loan or when used to purchase REALTOR Century 21 a home, can greatly Jeffries Lydon relieve the stresses of a tight budget. When the available cash remaining after paying all the bills leaves little room for the niceties of life, a HECM can free up significant cash. Instead of just getting by, an individual or couple can have extra monies to spend as they wish. HECMs do this by eliminating the need to make a monthly Principle and Interest payment on the home loan. That ‘payment’ is instead made by adding that value to the loan amount due. This loan does not need to be paid off until the borrower(s) move out of the home. They can live in the home as long as is needed.
By Dustin Cheatham,
Now some people (often times potential beneficiaries of the estate) don’t like the idea of an ever growing loan because it will cut into the inheritance. On the other hand, this feature leads us to the four-letter words of gift and kids and time. Instead of a larger piece of the pie left upon passing, the elderly folk can use the extra cash to spend more precious time with kids and grandkids and friends and together. That’s available monies to pay for special events such as movies or day trips or gifts or outdoor activities. These are things that you can participate in the appreciation of. All the extra time spent together and the
subsequent memories are priceless and can last forever. As much as we don’t like to think of it… Cash adds to the freedom to spend more time and do more things with the people you love–even the simple things.
The HECM is a government sponsored program that has a great deal of oversight and protections built into it. Impartial third party counseling is a requirement so that the borrower is fully educated about all aspects of a HECM loan. There is a great deal of online documentation offered by many organizations, such as HUD and AARP. Best of all, the eligibility requirements are minimal, based primarily on the age of the borrower(s), the equity position in the home, and some minimal cash flow capabilities. There are NO credit score requirements or debt ratio requirements or income limitations or employment needs. So you see, anybody over the age of 62 that could benefit from some additional cash flow every month, to make life more pleasant, should talk to a Mortgage Advisor who has been trained, like me, in the HECM program. Y have nothing to lose You but oh so much to gain… four There, another good fourletter word. *** Jim Heberle is a Mortgage Advisor MLO# 252781 with Stanford Mortgage, A Division of Finance of America Mortgage, LLCNMLS 1071. Jim’s primary business footprint Mortgage Advisor is from Butte County, Stanford Mortgage through the Central Valley, and into the Bay Area. He has been in the lending business for many years and also teaches Mortgage Lending, Property Management, and Title and Escrow at Butte College. That makes him one of the true Mortgage Professors. Contact Jim on his cell 530-321-9018.
Guest, Jim Heberle,
*** Dustin Cheatham is a REALTOR® at Century 21 Jeffries Lydon, since February 2015. BRE License #01972561. Dustin Cheatham gives his clients an exceptional experience, both in home buying and selling. He is committed to staying informed of the daily changing market so that he remains a local expert. Dustin stays ahead of these market trends allowing him to properly market homes and help buyers qualify to purchase them. Contact (530) 355-6881 or visit www.DustinSellsRealEstate.com
Ready for Business
Some days you’re just not ready to take care of business, especially if you’re yanked from a deep slumber by the insistent sound of a bell. “Gotcher letter here!” a man’s voice bellowed on the phone. “Oh?” I croaked. “Real Estate!” he yelled. “You sent this here letter to me! Jack Brown!” My mind is foggy. I pull the phone away from my ear and glance at the kitchen clock. Six-fifteen. Saturday morning. It was a late night. “Jack Brown?” I manage to mumble, hoping the fog will burn off. “That’s right!” he bellowed. “Canyon specialist, huh?” “Yes,” I say, “I work the Canyon.” The mist is clearing now. Jack Brown must have received a bulk mailer I sent. “Which road are you on?” I ask. “The road where you sent me this here letter!” he said. “If you’re interested, come on over. I’m headin’ out at nine.” I wasn’t sharp enough to get his phone number or address. And I was handicapped further because the Internet didn’t exist yet. No way to search for an address or phone number except to thumb through the phone book or to call up the Operator. Telephones were still a one-trick pony, tethered to the wall. I found a John Brown, Jr. in the phone book, the only one with an address I recognized as being located in any one of the four or five Canyons in the area. It was Stilson Canyon, an elite uppermarket piece of country close to town, one of the few areas where doctors and professionals could have some elbow room on an acre or two while maintaining a short commute to work. The location didn’t fit my vision of Jack Brown so far, but I called the number in the phone book to see if I had my man. Twenty rings or so later, the receiver lifted with a clank. “Brown residence!” he hollered. “Can I help ya?” Jack Brown’s place was a throwback, a left-over six-acre dry dirt-pasture horse ranch with a weathered house and barn. The surrounding properties had been subdivided into newly-manicured modern-style country estates. Big homes loomed along the creek, tucked back behind tight stone walls and shiny iron gates. Jack Brown met me at the gate. He moved fast, a stocky man in boots and checkered shirt. I shook his hand and tried to look wide awake and cheery despite my throbbing head. He looked me up and down. “Too early for ya, huh?”
“No, not at all,” I said. He glared at me. “You a drinkin’ man?” “No,” I said. He glared some more. “Listen,” he said, “there’s no need foolin’ around here. This ranch o’ mine is prime land. I got me an approved Subdivision Map. Took me a year. Five lots. Every one of ‘em creekfront. You with me?” “Yes,” I said, “I was just about to say the highest and best use for this property is-“ “Highest and best nothin’,” he said. “If you take care of business, you’ll List ‘em and sell ‘em.” I already checked you out with ol’ Tom Granger, you sold his place in Butte Creek Canyon. He seemed to think you were all right. That where you live?” “Yes, I’m in Butte Creek Canyon. Yeah, Tom’s place was one of several I’ve sold in-“ “Now, you’re gonna tell me how much these lots will sell for and we’ll take care of business.” This would be an incredible Listing. Looking past the dust, gravel and barbed wire exposed to the road, at the back of Jack’s property I could see lush sycamore and willow trees hinting at the cool creek and riparian environment beyond. Prime lots in this location would sell fast and for big money. “Well, uh,” I said, “I’ll need to do some research first to get an accurate Market Value, and-“ “I know that!” he snapped. “You sure you’re not a drinkin’ man?” His steel-blue eyes seemed to stare into my brain. I attempted a light-hearted chuckle. “No,” I laughed. “You a man of your word?” “Of course,” I said. But I stumbled on the word “course.” Jack looked down and nodded his head contemplatively. “Well, I got work to do…….” he said, and turned to walk away. There goes my great Listing. “Wait, Mr. Brown,” I blurted. “A couple of my buddies had me out on the town last night. Playing pool. And drinking beer.” He raised an eyebrow. “And some whiskey. But,” I said quickly, “that’s not my normal routine. I’m not a big partier.” “Ha! So you were over-served, huh? Well, that’s different. Happened to me a time or two before I figured out how to take care of business.” He glared at me again. “You ready to take care of business?” I was ready. _____________________________________________________
By Doug Love
Got a question or comment? I’d like to hear from you. Email [email protected] or call 530-680-0817. Doug Love is Sales Manager at Century 21 Jeffries Lydon.
Today I want to introduce you to Jim Heberle. He’s my mortgage advisor and he’s helped many of my clients from all walks of life purchase or refinance homes. I’ve asked him to write about a loan program specifically for seniors age 62+, which can open many doors of opportunity for eligible seniors. So if you or any senior you know are concerned about affording retirement, moving to be closer to children, or wanting to refinance a home to free up cash to buy investment property, then hear what Jim has to say about the HECM.
A gift by any other name… There are good four-letter words and then some not-so-good four-letter words. Good ones that come to mind are ease and gift and love and kids and time and HECM. I’ll take a pass on thinking of the bad ones. Technically, HECM is not a word but an acronym for Home Equity Conversion Mortgage. It is the new version of the old Reverse Mortgage of years ago. There were some negatives about a Reverse Mortgage that received a great deal of attention, and the HECM was created to right some of those negatives. The HECM is now a very good option for elderly folk (age 62+) to combine a lot of good four-letter words. The first mentioned, ease, because a HECM, either via a refinance of an existing home loan or when used to purchase REALTOR Century 21 a home, can greatly Jeffries Lydon relieve the stresses of a tight budget. When the available cash remaining after paying all the bills leaves little room for the niceties of life, a HECM can free up significant cash. Instead of just getting by, an individual or couple can have extra monies to spend as they wish. HECMs do this by eliminating the need to make a monthly Principle and Interest payment on the home loan. That ‘payment’ is instead made by adding that value to the loan amount due. This loan does not need to be paid off until the borrower(s) move out of the home. They can live in the home as long as is needed.
By Dustin Cheatham,
Now some people (often times potential beneficiaries of the estate) don’t like the idea of an ever growing loan because it will cut into the inheritance. On the other hand, this feature leads us to the four-letter words of gift and kids and time. Instead of a larger piece of the pie left upon passing, the elderly folk can use the extra cash to spend more precious time with kids and grandkids and friends and together. That’s available monies to pay for special events such as movies or day trips or gifts or outdoor activities. These are things that you can participate in the appreciation of. All the extra time spent together and the
subsequent memories are priceless and can last forever. As much as we don’t like to think of it… Cash adds to the freedom to spend more time and do more things with the people you love–even the simple things.
The HECM is a government sponsored program that has a great deal of oversight and protections built into it. Impartial third party counseling is a requirement so that the borrower is fully educated about all aspects of a HECM loan. There is a great deal of online documentation offered by many organizations, such as HUD and AARP. Best of all, the eligibility requirements are minimal, based primarily on the age of the borrower(s), the equity position in the home, and some minimal cash flow capabilities. There are NO credit score requirements or debt ratio requirements or income limitations or employment needs. So you see, anybody over the age of 62 that could benefit from some additional cash flow every month, to make life more pleasant, should talk to a Mortgage Advisor who has been trained, like me, in the HECM program. Y have nothing to lose You but oh so much to gain… four There, another good fourletter word. *** Jim Heberle is a Mortgage Advisor MLO# 252781 with Stanford Mortgage, A Division of Finance of America Mortgage, LLCNMLS 1071. Jim’s primary business footprint Mortgage Advisor is from Butte County, Stanford Mortgage through the Central Valley, and into the Bay Area. He has been in the lending business for many years and also teaches Mortgage Lending, Property Management, and Title and Escrow at Butte College. That makes him one of the true Mortgage Professors. Contact Jim on his cell 530-321-9018.
Guest, Jim Heberle,
*** Dustin Cheatham is a REALTOR® at Century 21 Jeffries Lydon, since February 2015. BRE License #01972561. Dustin Cheatham gives his clients an exceptional experience, both in home buying and selling. He is committed to staying informed of the daily changing market so that he remains a local expert. Dustin stays ahead of these market trends allowing him to properly market homes and help buyers qualify to purchase them. Contact (530) 355-6881 or visit www.DustinSellsRealEstate.com
Ready for Business
Some days you’re just not ready to take care of business, especially if you’re yanked from a deep slumber by the insistent sound of a bell. “Gotcher letter here!” a man’s voice bellowed on the phone. “Oh?” I croaked. “Real Estate!” he yelled. “You sent this here letter to me! Jack Brown!” My mind is foggy. I pull the phone away from my ear and glance at the kitchen clock. Six-fifteen. Saturday morning. It was a late night. “Jack Brown?” I manage to mumble, hoping the fog will burn off. “That’s right!” he bellowed. “Canyon specialist, huh?” “Yes,” I say, “I work the Canyon.” The mist is clearing now. Jack Brown must have received a bulk mailer I sent. “Which road are you on?” I ask. “The road where you sent me this here letter!” he said. “If you’re interested, come on over. I’m headin’ out at nine.” I wasn’t sharp enough to get his phone number or address. And I was handicapped further because the Internet didn’t exist yet. No way to search for an address or phone number except to thumb through the phone book or to call up the Operator. Telephones were still a one-trick pony, tethered to the wall. I found a John Brown, Jr. in the phone book, the only one with an address I recognized as being located in any one of the four or five Canyons in the area. It was Stilson Canyon, an elite uppermarket piece of country close to town, one of the few areas where doctors and professionals could have some elbow room on an acre or two while maintaining a short commute to work. The location didn’t fit my vision of Jack Brown so far, but I called the number in the phone book to see if I had my man. Twenty rings or so later, the receiver lifted with a clank. “Brown residence!” he hollered. “Can I help ya?” Jack Brown’s place was a throwback, a left-over six-acre dry dirt-pasture horse ranch with a weathered house and barn. The surrounding properties had been subdivided into newly-manicured modern-style country estates. Big homes loomed along the creek, tucked back behind tight stone walls and shiny iron gates. Jack Brown met me at the gate. He moved fast, a stocky man in boots and checkered shirt. I shook his hand and tried to look wide awake and cheery despite my throbbing head. He looked me up and down. “Too early for ya, huh?”
“No, not at all,” I said. He glared at me. “You a drinkin’ man?” “No,” I said. He glared some more. “Listen,” he said, “there’s no need foolin’ around here. This ranch o’ mine is prime land. I got me an approved Subdivision Map. Took me a year. Five lots. Every one of ‘em creekfront. You with me?” “Yes,” I said, “I was just about to say the highest and best use for this property is-“ “Highest and best nothin’,” he said. “If you take care of business, you’ll List ‘em and sell ‘em.” I already checked you out with ol’ Tom Granger, you sold his place in Butte Creek Canyon. He seemed to think you were all right. That where you live?” “Yes, I’m in Butte Creek Canyon. Yeah, Tom’s place was one of several I’ve sold in-“ “Now, you’re gonna tell me how much these lots will sell for and we’ll take care of business.” This would be an incredible Listing. Looking past the dust, gravel and barbed wire exposed to the road, at the back of Jack’s property I could see lush sycamore and willow trees hinting at the cool creek and riparian environment beyond. Prime lots in this location would sell fast and for big money. “Well, uh,” I said, “I’ll need to do some research first to get an accurate Market Value, and-“ “I know that!” he snapped. “You sure you’re not a drinkin’ man?” His steel-blue eyes seemed to stare into my brain. I attempted a light-hearted chuckle. “No,” I laughed. “You a man of your word?” “Of course,” I said. But I stumbled on the word “course.” Jack looked down and nodded his head contemplatively. “Well, I got work to do…….” he said, and turned to walk away. There goes my great Listing. “Wait, Mr. Brown,” I blurted. “A couple of my buddies had me out on the town last night. Playing pool. And drinking beer.” He raised an eyebrow. “And some whiskey. But,” I said quickly, “that’s not my normal routine. I’m not a big partier.” “Ha! So you were over-served, huh? Well, that’s different. Happened to me a time or two before I figured out how to take care of business.” He glared at me again. “You ready to take care of business?” I was ready. _____________________________________________________
By Doug Love
Got a question or comment? I’d like to hear from you. Email [email protected] or call 530-680-0817. Doug Love is Sales Manager at Century 21 Jeffries Lydon.
