I’m Mark Hammond, a mortgage broker since 1994, and you’ll be working directly with me on your loan! You want to find someone that is always accessible and can quickly figure out your loan situation and put your mind at ease. That’s me. I have a wealth of experience to share with you to give you the edge you need to succeed. In today’s mortgage business it’s hard to find someone who will actually take the time to listen to your situation and give you the reassurance that they’ll see it through to a successful end. Most will direct you to their online application and never talk to you. I will ask the right questions to know key details about your loan situation, which can mean the difference between success and failure, and guide you carefully to safety.
Banks, credit unions, and large online lenders hire low-paid order takers with no solid roots in your community to make them accountable to you. They go home at 5 pm and forget about your loan. Low pay means high turnover and good people don’t stick around long enough to be truly effective problem solvers. They don’t know the right questions to ask so they can’t see the icebergs.
You have a lot on the line when you purchase, refinance, or reverse mortgage your home and you need a quality consultant to protect your interests, one with a solid reputation in your community and who is accountable. Do you have to pay more for this? No!! Why not? It’s very simple. The big mortgage players take the same rates that I see and mark them up so their salespeople have to sell higher rates than me. They build in huge profits into their base rates. I’m an owner/broker, and I don’t do that, so my rates are way better from the outset. Most of the time, it’s not even close! You get wholesale rates as a retail borrower plus my 25+ years of experience! I’m unbeatable!
The very first step in buying a home is loan pre-approval. Your offer won’t be considered and realtors won’t work with you until you have a loan pre-approval that states that your financing is in order. The process can be done very quickly. First, we fill out a loan application, usually over the phone with me. Takes about 30 minutes. Then I’ll tell you what I need from you.
You’ll typically need the following:
W2s for last 2 years (Taxes if self-employed)
Pay stubs for the last 30 days
Copy of your Drivers License
Proof of down payment funds (Gifts are often allowed)
In a competitive real estate market, your lender’s experience will open doors and make you more competitive. The pre-approval letter I provide will make you shine above other buyers and give the seller the confidence to accept YOUR offer because they’ll trust that I can deliver for them and for you. Get Pre-approved now!
Seniors over 62 can buy a home with a reverse mortgage! Do you have lots of equity in your home or a big down payment and want to downsize or move? Increase your buying power with a reverse mortgage purchase! Put approximately 50% down and finance the rest with a reverse mortgage that requires no payments while you live there. So instead of paying all cash for the property in order to have no payments, you can put about half down (depending on your age) and achieve the same thing – no payments. Put the rest in the bank!
Most people know once you have a mortgage, you can refinance it for a variety of good reasons like to:
Lower your rate and payment
Lower your rate and term to pay it off faster
Borrower cash above what you owe to:
pay off debts
pay for home improvements
get a down payment to purchase another house
Buy out siblings from inherited properties
Pay off spouse in a divorce
Not all lenders care about helping you make the right decision. I do! Sometimes refinancing doesn’t make any sense because the benefits don’t outweigh the costs. I’ll help you make the right decision.
I’m a big believer in the 15 year mortgage and encourage all to try to do it. The savings in overall interest is phenomenal. But if you don’t qualify or can’t commit to it, I’ll show you what you need to pay each month to turn a 30 year loan into a 15 year loan. You’ll still save all the interest that way if you stick with it.
No-cost loans vs. cost loans?
What’s all the hoopla about no-cost loans? Why wouldn’t you want a loan that has no costs? Well, because a loan with NO COSTS has a HIGHER rate than a loan with costs. The costs are still there with both, but can be paid with a lender credit produced by a higher rate. How do you decide which is best? You have to ask yourself how long you’ll keep the loan. If it’s for a short time, the NO COST loan is best. If you plan to keep the loan for a long time, the loan with costs is best because you’ll realize more savings over time with the lower rate and recoup the costs. Your lender should take this into consideration when helping you decide.
If you want to see what a refinance would look like, just send me your most recent mortgage statement, and I can figure it up in a few minutes.
“I’m retired and my income is low. I have a lot of equity in my home, but it does me no good unless I sell the house. But I need a place to live! I wish there was a way to stay in my home and stop making mortgage payments. I would love to get at some of that equity to pay for prescriptions, medical costs and spoiling my grandchildren. Can’t the lender just let the interest build up on my loan and collect it later after I die? Right now I need a break!”
This is just one example of why a reverse mortgage can make sense for seniors. Also consider this:
I have a lot of equity in my home and am retiring soon. If I wait to take out social security, I’ll get a higher benefit amount, so I’m taking out a reverse mortgage to cover my living expenses for a few years so I can postpone taking out social security till my benefit amount is at its max!
What about this?
I am doing fine financially, have my house paid off, and have a solid income. I’d like to vacation more, fix up my house, and give out some of my kids’ inheritance while I’m still alive to see them enjoy it. I’m opening a reverse mortgage line of credit that I can access whenever I choose. No interest accrues on the money I haven’t used and the line of credit available grows each year if I don’t use it and NO payments!!
Or what about this?
My empty nest is too big and yard work and upkeep are beyond my capabilities. My home is worth $400k and paid off. I don’t want any mortgage payments. I’d like to sell my house and buy a townhome for $300k. To have no payments, I could pay cash for the house and put $100k in the bank. Or I could purchase the townhome with a reverse mortgage, put roughly half down ($150k) and put $350k in the bank and have no payments. $100k or $350k in the bank? I’ll take the reverse mortgage route all day long!
Home Equity Conversion Mortgages (HECMs), commonly known as reverse mortgages, are Federal Housing Administration (FHA) insured, low-interest home loans for seniors (over 62 yrs) that require no payments EVER as long as the seniors live in the home. Existing loans can be paid off and equity can be drawn out to pay for medical expenses, living expenses, or whatever the borrower chooses without income taxes. The maximum loan amount is a percentage of the home’s value determined by the age of the youngest homeowner. Ask me how much you can get.
Since no interest is paid by the borrowers, interest accrues on the note each month, but is not collected until after the death (or permanent vacancy) of all borrowers on the note. Lenders assume the risk that the loan balance might become greater than the value of the home. Borrowers retain ownership of the home and can sell the home or refinance the loan to a regular loan later if they choose. Reverse mortgages can also be refinanced later on with a new reverse mortgage to pull out more cash if the home value increases substantially.
Getting rid of monthly mortgage payments and using the nest egg built up over the years can really ease the stress of retirement for seniors. Knowing that their home can never be taken away is also a great relief. The loan does not have to be repaid until the last surviving homeowner permanently moves out of the property or passes away. At that time, the estate has up to 12 months (with no required payments) to refinance the balance of the reverse mortgage or sell the home to pay off the balance.
All remaining equity is passed on to the heirs. If no equity remains in the home, the estate can simply walk away with no liability. The estate is not liable if the home sells for less than the balance of the reverse mortgage.
There are also Jumbo Reverse Mortgage programs to finance high-priced homes. Ask me about it.
Purchase a Home with a Reverse Mortgage
Reverse mortgages can be used to purchase a home. For example, seniors that wish to downsize, move, or upsize can sell their existing home, make a large down payment and finance the rest with a reverse mortgage. Then, no payments will need to be made. Seniors can really increase their buying power because they only need to be able to afford their current monthly credit debt, and proposed utilities, taxes and insurance on the new house. No mortgage payment means big buying power!
I just need your address, current loan balance, and your date of birth to determine how much you qualify for. Call me NOW. 801-277-5100
As your source for creative mortgage financing, I’ve done my homework on credit and credit scoring. In doing so, I’ve found there are a lot of misconceptions out there about how credit scores are determined. I find quite often that well-intentioned people are doing things that will hurt their credit scores without knowing it. Many times they were told to do these things by someone in the mortgage or banking industry. Yikes!
Here are the factors that affect credit scores in order of importance. The percentages shown are the extent that these items affect the score–or how much “weight they carry.”
Payment History – 35% of what determines your score – DON’T BE LATE
Public Record and collection items
Recency, frequency, and Severity of delinquencies (in that order)
Outstanding Debt – 30% of what determines your score – DON’T MAX OUT
Number of balances recently reported
Average balance across all trade lines
Relationship between total balances and total credit limit on revolving trade lines
Credit History – 15% of what determines your score – DON’T CLOSE CREDIT CARDS
Age of oldest trade line
Number of new trade lines
Pursuit of new credit – 10% of what determines your score – ONCE ESTABLISHED, LAY LOW
Number of inquiries and new accounts opened in last year
Amount of time since last inquiry
Types of credit in use – 10% of what determines your score – KEEP A GOOD MIX OF CREDIT
The number of trade lines reported for each type:
Bank cards, travel/entertainment cards, dept. store cards
Personal finance company references (“Same as cash” NOT good)
The most shocking thing is that “paying on time” only accounts for 35 percent of what determines your score. Even if you always pay on time, you CAN still have VERY LOW SCORES if you’re maxed out on everything, for example.
Know that 30 percent of what determines the score is how outstanding debt is managed. “Maxing out” credit cards is the biggest “no no.” Maintain the lowest balances on credit cards as possible, never more than 50% of your credit limit at any one time.
Request credit line increases or pay down balances to avoid a lower score due to being over extended.
NOTE: Even if you pay off the account on the next business cycle, there’s a good chance the high balance will report before you do so. Then the damage is done.
Next, it’s wrong to assume that scores will improve by closing accounts. People think that by having too many credit cards with high limits, their scores will be low due the risk of a “mad spending spree” that could cause them to get over-extended. This is a fallacy.
Maintaining stability and control with large credit limits will help to produce very high scores. Closing accounts, on the other hand, will reduce the amount of credit available, which will make the person appear more “maxed out.” KEEP ACCOUNTS OPEN!
Finally, credit inquiries and new credit lines can temporarily lower the score until those accounts are seasoned. Credit inquiries can affect credit scores for up to 1 year. People with very little credit must pass through this in order to get established. However, people with established credit should be careful about applying for and opening up a lot of new credit right before they apply for a home loan.
NOTE: If you need a loan, don’t hesitate to have me run a credit report to assess your chances. The advice I can give you to improve your scores will make them go up way more than the few points they might lose by having an inquiry. For example, don’t wait till your rental lease is up toget qualified. Get with me months before, so that if something needs to be fixed, you’ll have time to do it.
Credit scores are very accurate in forecasting trends that lead to severe delinquency. People on the road to delinquency, tend to be over-extended, and to continually be in the pursuit of more credit. With most mortgage programs these days, the interest rates are driven by the credit scores, especially at high LTV (Loan to Value) ratios.
Hopefully this information will be valuable to you. If you follow these rules, you’ll improve your chances of obtaining the best loan programs available for your situation. Call me if you have any questions. TELL A FRIEND about this part of the site. You know you know several people who should read this. Call me for the best loans with high and low credit scores.