Real Estate 04/07/18

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RealEstate Saturday, April 7, 2018

SpringsHouses.com • Marketplace Inside

THE MORTGAGE PROFESSOR:

Finding the best deal on an HECM reverse mortgage BY JACK GUTTENTAG, TRIBUNE NEWS SERVICE

The best deal on a mortgage is usually defined in terms of the interest rate and origination fee charged the borrower. That was my approach in a previous column on the subject. I recently realized, however, that with reverse mortgages, it was more meaningful to focus on the amounts that borrowers receive in the diverse ways in which reverse mortgages can be used.

That is my approach here. Each week, nine reverse mortgage lenders update their prices to my website, which is the only available source of price data covering multiple lenders. For this analysis, I assume a borrower age 64 with a house worth $400,000 in California. Five of the nine lenders operate in California, which means that the borrower has at least five

quotes — more if any of the lenders post multiple rate/fee combinations, which most of them do. The prices are as of March 22. Because the best deal on a reverse mortgage depends on the borrower’s objective, my approach is to look at each of five common objectives. In each case, I compare the largest amount offered the borrower with the smallest amount.

RAISE AS MUCH CASH AS POSSIBLE Many reverse mortgage borrowers have an immediate need for cash, which may be to pay off a short-term debt or buy a house. In contrast to other objectives discussed below, which can be met only with adjustable-rate HECMs, this one can be met with a fixed rate or an adjustable-rate HECM.

Using a fixed-rate, the largest amount available on March 22 was $100,225 from lender A, the smallest was $83,995 from lender D. The smallest quote was 84 percent of the largest. Using an adjustable rate and including amounts that can be drawn after a year, the largest amount was $180,595 from lender C, the smallest amount was $143,594 from lender E. The smallest CONTINUED ON PAGE 2

FEATURED HOME OF THE WEEK QUIET SETTING IN BROADMOOR BLUFFS

FEATURED HOME OF THE WEEK

GORGEOUS RANCH HOME — PRICE REDUCED

10973 Checo Way | $498,381 Neighborhood: Meridian Ranch Directions: From I-25: go east on Woodmen Road; turn left onto Meridian Road; turn right onto Rex Road; turn right onto Pyramid Peak; turn right onto Clark Peak Court; turn right onto Checo Way, follow to house Contact: Roxanne Nice, 719-418-3969 meridianranch@campbellhomes.com

5850 Daltry Lane | $500,000

• 3,956 square feet • 5 bedrooms, 3.5 bathrooms • 3-car garage • Main level den with French doors • Hardwood floors in extended entry, kitchen, dining and great room • Gas fireplace with tile surround and built-in entertainment center • Maytag stainless steel appliances

Neighborhood: Broadmoor Bluffs Open House: Saturday and Sunday, 1 – 3 p.m. Hosted by: Margy Gulickson, 719-482-5169 Agent/Company: Tyra Sandoval RE/MAX Properties, Inc., 719-330-9440

New Model Homes Now Open! Hello, Sanctuary Pointe.

An inspired new master-planned community where the western edge of Black Forest meets the cutting edge of civilized country living.

SanctuaryPointeColorado.com

Baptist Rd.

Rollercoaster Rd.

Sanctuary Rim Dr.

Located along the western edge of the Black Forest just off Baptist Rd. and Sanctuary Rim Dr.

This home is in amazing condition! Bright and open remodeled kitchen and master bath with heated floors. Newer roof, A/C, furnace and windows! A large Trex deck was added in 2009. The home features four bedrooms, four baths and a three-car garage. Close to Cheyenne Mountain Country Club, Cheyenne Mountain State Park and other neighborhood parks.


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