Independence Day

Independence Day, also referred to as the Fourth of July, is a federal holiday commemorating the adoption of the Declaration of Independence on July 4, 1776, by the Continental Congress declaring that the thirteen American colonies regarded themselves as a new nation, the United States of America. We at Consumer Mortgage & Investment Corp. wish you a safe and happy holiday.

Memorial Day

Memorial Day for all soldiers is embodied in the words of the oath that you first take when you enlist into the service of the country.  I DO SOLEMNLY SWEAR (OR AFFIRM) THAT I WILL SUPPORT AND DEFEND THE CONSTITUTION OF THE UNITED STATES AGAINST ALL ENEMIES, FOREIGN OR DOMESTIC; THAT I WILL BEAR TRUE FAITH AND ALLEGIANCE TO THE SAME; AND THAT I WILL OBEY THE ORDERS OF THE PRESIDENT OF THE UNITED STATES AND THE ORDERS OF THE OFFICERS APPOINTED OVER ME, ACCORDING TO REGULATIONS AND THE UNIFORM CODE OF MILITARY JUSTICE. SO HELP ME GOD. We at Consumer Mortgage honor all soldiers that died in battle and the one’s that serve us to protect our freedom. The price of freedom is not free.

Fixed Rate Mortgage

A fixed-rate mortgage charges a set rate of interest that does not change throughout the life of the loan. Although the amount of principal and interest paid each month varies from payment to payment, the total monthly mortgage payment remains the same, which makes budgeting easy for homeowners.  The main advantage of a fixed-rate loan is that the borrower is protected from sudden and potentially significant increases in the monthly mortgage payment if the interest rate rises.  The downside to a fixed- rate mortgage is that when interest rates are high, qualifying for a loan is more difficult because the payments are less affordable. Rates have been low for quite some time and in recent weeks they have been very low. Give Consumer Mortgage & Investment Corp.  a call today to get a rate quote for your purchase or refinance.  757-552-7000 or 1-800-882-0066. Also visit our website for posted rates. www.consumermtg.com (rates are always subject to change.)

Reverse Mortgages Can Protect Against New Medicare Surcharges

This year, Medicare introduced a new income scale that will make paying for certain coverage options such as Medicare Parts B and D more expensive once they take effect in 2018. However, a reverse mortgage might be able to help seniors maximize their savings against these new Medicare surcharges, according to a recent Investment News article.
Officially known as the income-related monthly adjustment amount (IRMAA), these surcharges create higher Medicare out-of-pocket costs for beneficiaries without providing any additional health coverage benefits, says the article written by Katy Votava, Ph.D., RN, and president of Goodcare.com, a consulting firm that works with financial advisers and consumers on health care coverage. 

Specifically, the new law updated the scale used by Social Security to determine Medicare surcharges, essentially lowering the top three modified adjusted gross income (MAGI) tier thresholds. This means more beneficiaries will be exposed to paying top levels sooner than is currently the case, said Votava.

“The good news is that there are several retirement-income planning options for advises to consider that can help people move down a bracket or two and save their hard-earned nest egg dollars,” Votava writes.

The basic strategy is to structure retirement income to maximize cash flow sources that are not included in Medicare’s MAGI calculation. One method to achieve this goal, she says, is by using a reverse mortgage, as the tax-free loan proceeds are not included in the calculation of Medicare IRMAA surcharges.

“Consider whether a HECM line of credit can be used instead to supplement taxable distributions to keep a person from going over into the next Medicare surcharge bracket,” Votava writes. 

Give us a call at Consumer Mortgage for a free analysis on a reverse mortgage 1-800-882-0066 or 757-552-7000.

WHAT IS THE DEFINITION OF MORTGAGE INSURANCE?

Mortgage insurance protects a lender from homeowners who default on their loans. Homeowners pay mortgage insurance each month, while also paying interest and paying off part of the principal on the home mortgage. Although it may not cover all the costs associated with unpaid mortgage funds and processing a foreclosure, mortgage insurance helps distribute the risk more evenly to both the insurance provider and the mortgage lender. In cases where a homeowner makes timely mortgage payments, only the insurance provider profits from mortgage insurance. With 20% down on your purchase, mortgage insurance will not be required. Another way to avoid mortgage insurance is for the homeowner to get a loan for less than 80% of the value and a second mortgage for the balance of the total amount needed to purchase the home. Second mortgages typically have higher interest rates than a first mortgage, but they can still cost less than paying for mortgage insurance in some cases. Call Consumer Mortgage at 757-552-7000 or 1-800-882-0066 for professional advice on your next purchase. 

DO YOU KNOW THE DIFFERENCE BETWEEN A PUD,CO-OP AND CONDO?

Planned Urban Development {PUD}- a Coordinated, real estate development where common areas are shared and maintained by an owner’s association or other entity.Co-Operative {Co-Op}- A form of ownership where each resident of a multi-unit property owns a share in a corporation that owns the building; with each resident having rights to a specific unit within the building. Condominium {Condo}- A development  where  individual units are owned , but common areas and amenities are shared equally by all owners. Call us at Consumer Mortgage with any questions on mortgages or real estate 757-552-7000 or 1-800-882-0066.

Refinancing

If you are wanting to either get a more desirable rate and/or terms for your mortgage or if you want to get cash because of the home’s equity, refinancing might be the perfect next step for you. There are two types of refinancing that can help you achieve what you want. There is rate-and-term refinancing and also cash-out refinancing. The point of Rate-and-term refinancing is that you get a new loan in order to pay off your previous loan. This type of refinancing would be used if you want to switch to an ARM mortgage or switch to a fixed rate mortgage. Cash-out refinancing can leave you with the amount of cash that you need to pay off your mortgage. Here at Consumer Mortgage we can help you grasp a better understanding of both and can help you refinance, so give us a call at (757)552-7000