Moishe Alexander’s Blog

This is great stuff to know said Moishe Alexander of Canadian Funding Corp.

Reverse mortgages are becoming popular in America. HUD’s Federal Housing  (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. You can receive free information about reverse mortgages in general by calling AARP toll free at (800) 209-8085. 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?

A reverse mortgage is a special type of home loan that lets you convert a portion of the equity in your home into cash. The equity that built up over years of home mortgage payments can be paid to you. But unlike a traditional home equity loan or second mortgage, no repayment is required until the borrower(s) no longer use the home as their principal residence. FHA’s HECM provides these benefits. You can also use a HECM to purchase a primary residence if you are able to use cash on hand to pay the difference between the HECM proceeds and the sales price plus closing costs for the property you are purchasing.

2. Can I qualify for FHA’s HECM reverse mortgage?

To be eligible for a FHA HECM, the FHA requires that you be a homeowner 62 years of age or older, own your home outright, or have a low mortgage balance that can be paid off at closing with proceeds from the reverse loan, and you must live in the home. You are further required to receive consumer information from an approved HECM counselor prior to obtaining the loan. You can contact the Housing Counseling Clearinghouse on (800) 569-4287 for the name and telephone number of a HUD-approved counseling agency and a list of FHA-approved lenders within your area.

3. Can I apply if I didn’t buy my present house with FHA mortgage insurance?

Yes. It doesn’t matter if you didn’t buy it with an FHA-insured mortgage. Your new FHA HECM will be FHA-insured.

4. What types of homes are eligible?

To be eligible for the FHA HECM, your home must be a single family home or a 1-4 unit home with one unit occupied by the borrower. HUD-approved condominiums and manufactured homes that meet FHA requirements are also eligible.

5. What’s the difference between a reverse mortgage and a bank home equity loan?

With a traditional second mortgage, or a home equity line of credit, you must have sufficient income versus debt ratio to qualify for the loan, 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. 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.

You don’t make payments, because the loan is not due as long as the house is your principal residence. Like all homeowners, you still are required to pay your real estate taxes, insurance and other conventional payments like utilities. With an FHA HECM you cannot be foreclosed or forced to vacate your house because you “missed your mortgage payment.”

6. 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.

7. Will I still have an estate that I can leave to 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. More info here


posted by Moishe Alexander at Canadian funding corp.

A maze

The mortgage market is a bit of a maze

Mortgages should be straightforward – you borrow money to buy a house and pay interest on the loan.

But after a few enquiries, you soon realise that it’s not so simple after all.

In a hugely competitive market, building societies and banks are continually updating and extending their range of mortgages. The list is already extensive enough to baffle all but the most determined.

The most important points are how you pay back the capital you borrow and how you pay the interest on it.

Paying back the capital

You can either pay a little at a time as you go (repayment mortgage) or pay it all off at the end (Interest only or endowment mortgages).

Repayment mortgages – Each monthly payment pays off a little of the underlying debt, as well as interest on the loan. At the end of the term the mortgage is cleared.

This is widely considered to be the most easy to understand and least risky mortgage type. But remember if you do not keep up with repayments the lender can repossess the property.

Interest only mortgages – With this type of mortgage, you pay-off the interest on the loan but not the capital. At the end of the mortgage term you are expected to repay the capital, how you fund this is your business.

Interest only mortgages have grown in popularity in recent years amongst buy-to-let investors and first-time buyers in particular because, put simply, they are cheaper than a repayment mortgage.

However, some experts are concerned that many people taking out an interest only mortgage are not giving enough thought as to how they will repay the capital.

Endowment Mortgages – You use an endowment policy to provide life insurance and save funds to repay the loan at the end of the term (usually 20-25 years).

If the investment performs badly, you could face a shortfall on your loan at the end of the repayment period. In the 1980s endowments were very popular and heavily marketed by lenders.

However, many people were not told of the investment risk. This was mis-selling and lenders faced huge claims for compensation.

As a result, endowment mortgages have declined sharply in popularity. Relatively few endowments are sold today but there are still millions of policies yet to mature.

Mortgage application forms

Remember to read the small print

Paying the interest

You have to pay interest on any debt, and mortgages are no different. They differ only in the range of options offered.

Variable rates – This means you pay the going rate on your loan. The mortgage rate changes every time interest rates change or, as in most cases, the overall effect of any interest rate changes is calculated once a year and payments are altered accordingly. Whatever kind of mortgage you start with, it is likely to change to variable rates at some point.

Fixed rates – The interest rate is fixed for the period agreed – often two to five years. These are ideal for budgeting or if you think rates might increase. You do not benefit if rates fall, and will face penalties if you try to quit. Read more here

New housing starts rose 17 percent in May, according to figures released this morning by the Commerce Department, the third consecutive monthly increase. Building permits for new housing construction also rose, up 4 percent over April’s figures. Both figures well exceeded analyst’s projections; a survey by Dow Jones Newswires had predicted increases of 7 percent and 2.5 percent, respectively.

Casting a cloud over the positive news, however, was a report yesterday from the National Association of Home Builders suggesting that home builders have grown slightly more pessimistic in June about upcoming market trends. A three-quarter point increase in mortgage rates in recent weeks appears to be the main factor in dampening builder’s outlooks this month despite the strong uptick in May.

Unusually large increase in multifamily starts

New construction starts of single-family homes were up 7.5 percent in May, while construction starts of multiunit apartment buildings and condominiums of five or more units were up 77 percent following an unusually sharp decline in April. Both figures are subject to fairly large sampling error, so data for multiunit construction starts may represent a return to normal.

The sampling error on new construction permits is much smaller, however, suggesting that the 4.0 percent increase for May is pretty much on the mark. The Commerce Department cautions that four months are needed to establish a trend in any of the new construction data, meaning the three months of increases in new housing starts are approaching that mark. Moishe Alexander is president of Canadian funding corp.

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Info from Moishe Alexander

There is an energy efficient home. From Florida to Alaska mortgage lenders are increasingly using energy mortgages to make homes more affordable and poising their companies to capture this new market trend.

What is an energy mortgage? An energy mortgage is a mortgage that credits a home’s energy efficiency in the home loan. There are two types of energy mortgages:

Energy Improvement Mortgage – Finances the energy upgrades of an existing home in the mortgage loan using monthly energy savings

Energy Efficient Mortgage – Uses the energy savings from a new energy efficient home to increase the home buying power of consumers and capitalizes the energy savings in the appraisal

In 1995 the Residential Energy Services Network (RESNET) was formed as a partnership between the national mortgage industry, Energy Rated Homes of America, and the National Association of State Energy Officials.

The ability to leverage a home buyer’s investment in energy efficiency increases the number of qualified home buyers and increases the purchasing power of the consumer. A recent analysis by the Environmental Protection Agency confirmed that energy efficient mortgages can have a dramatic impact on increasing the opportunities for home ownership. The analysis found that an average of 6.8% more families would be able to qualify for a mortgage through an energy efficient mortgage.

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Monday, June 15, 2009

Moishe Alexander says to turbo charge your portfolio. Stylish 5 bedroom 2.5 bath suited home has over 1178 sq ft of rental space plus a triple detached garage. Separate 2 bedroom suite with separate entry pulls in extra cash flow.

Comes complete with great tenants making this a totally turn-key property for you. Convenient area with nearby access to the new Ring Road and access to refinery row. Excellent neighborhood and HUGE upside potential due to the great purchase price, strong economic fundamentals and the mature area of Edmonton’s North East neighborhoods.

Produces $340 positive cash flow per month using an investor’s mortgage plan – taking advantage of current low rates

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A good number of well-intentioned families have put off the thoughts of purchasing a home. They are waiting for a time in the distant future when house prices

are stable and job security is no longer a joke. Unfortunately, they are missing out on a great time to buy.

Moishe Alexander says now is the right time

Why is it such a great time to buy? The truth of the matter is that there have never been better deals on real estate in Toronto. Supply is unlimited and demand is at an all time low which means that there are a lot of great deals out there. But just because there are good deals doesn’t mean that YOU should be buying. The following will help you determine whether or not now is a good time for you to buy

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Its a good time to buy with Moishe Alexander

End of year and December give you the good opportunity to purchase real estate.In this time you can pick up a bargain real estate from a motivated seller and you can also save on your purchase costs.
1.Real estate buyers put off looking for a house that holiday decorating,parties,shopping or celebration.Furthermore,the winter makes real estate buyers prefer to stay home because effect from cold weather. For this reason make a low competition from other real estate buyers.

2.Home sellers who didn’t sell pending the recent buying frenzy are worried that their home will not sell. Because,most home seller offering their home for sale while the holiday season is motivated.
3.Any real estate agents who want to take their holiday same other people.They need to sell they house quickly,the agents aren’t as busy,you get good service They’re more likely to take low offers seriously. Real estate agents love buyers or investors ready to buy real estate while December.

4.On december,Interest rates continue to creep up. Who knows what the rates will increase to next year?

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