Justin Perry's Mortgage Blog

There are billions of dollars in adjustable rate mortgages that are going to adjust in 2007 and billions more in 2008.  Right now a 30 year fixed rate mortgage offers the same rate as a 3/1 adjustable rate mortgage.   Many people are sitting back and waiting until the very month that their mortgage loan adjusts - don't!  It is very likely that you can get yourself into a 30 year fixed rate mortgage today without even changing your monthly payment.  Keep in mind that if you wait until your rate adjusts, you will still have to pay about a month's worth of interest at the new rate which in some cases is about 2 to 3 percentage points higher. 

Call your mortgage professional today to see if you could be saving hundreds of dollars a month on your mortgage. 

With all the changes in the market it is more important than ever to differentiate yourself from your competitors. 

One of my co-workers who focuses on reverse mortgages brought up a great competitive advantage that we can offer realtors.  If you can go after listings owned by older clients (62+) that are just sitting on the market because they are out dated (lime green appliances for example), we can go in and do a reverse mortgage to update the home and make it marketable.   For example we just closed on one last week that was on the market for a year and a half and went through 3 different listing agents before the owner finally took a reverse mortgage, put $20,000 into it and sold it a month later.   The borrower also more than made back the $20,000. 

Some people have asked; why not just do a conventional equity loan to do the improvements?  The answer is that for an equity loan you need income and good credit to qualify.  The only requirements for a reverse mortgage are that the borrower is 62+ and they have equity in the home.  YOU DO NOT HAVE TO MAKE MONTHLY PAYMENTS ON A REVERSE MORTGAGE!!

Go Red Sox!