Applicants must:

• Be without decent, safe, and/or sanitary housing
• Have applied for other loan programs only to be denied because of the restrictions on credit or other conditions which a lender would have otherwise approved
• The property MUST be your primary residence
• Have the legal capacity to incur a legal obligation
• You must be a United States citizen and, if not, meet the eligibility requirements as a non-citizen
• You cannot be barred from any federal programs

The property you are purchasing must be 2,000 square feet or less, not have a fair market value above the applicable loan limit, and cannot be used as an income-generating property. The subsidy that the USDA loan program offers is to be repaid over the life of the loan when the title is transferred is sold or you no longer live in the property. Another qualifying factor for these loans is income eligibility. The site is Single Family Housing Direct Home Loans | Rural Development (usda.gov) to determine the income limits for this program. The home must be located in a rural area as determined by the USDA. The site is Eligibility (usda.gov). Feel free to utilize these sites as needed to determine your unique situation if you may qualify for this program. The funds can be used to build, repair, renovate or even relocate the home as well as update the water and sewage system. The employees at 7^th Level Mortgage have been trained on this loan program and will guide you through the entire process of qualifying for and obtaining this loan.

The borrowing limits have been developed by the USDA and using the Single-Family Housing Direct Self-Assessment tool will give you information to see if you are a good fit for this program. What the tool will provide are fields you can fill out about the general household composition, monthly income, monthly debts, property location, estimated property taxes, and estimated hazard insurance costs. Additionally, 7^th Level Mortgage originators can help you through the self-assessment guide, and using the information will provide the maximum loan limit based on your ability to repay the loan as well as the area loan limit. Effective April 1, 2022, the rate for this program was 2.5% for low-income and very low-income borrowers. The rate is based on current market rates at loan approval or closing, whichever is LOWER! This makes the home more affordable. With the payment assistance, the effective rate could be as low as 1% which is a lot lower than conforming, conventional, FHA, or VA rates. For borrowers who may be a little behind the eight ball in terms of repayment of the loan based on a 33-year term, the payback period could be as long as 38 years. No down payment is required, however, for borrowers with assets greater than the asset limits set by the USDA, you may be required to use some of these assets as an offset for the costs.

For your convenience, I have supplied you with the resources sites so you can see if you meet the requirements for this program. The source is from the USDA.

Applicant Resources:

• Applicant Orientation Guide video
• Form RD 3550-23, Applicant Orientation Guide– English version
• Form RD 3550-23, Applicant Orientation Guide– Spanish version
• Rural Development State Office Contact Information

Borrower Resources:

• New Homeowners Information Guide– English version
• New Homeowners Information Guide– Spanish version
• Streamlined Assist Refinance Loan

Training:

• Program Overview
• Pre-qualification and Application Processes
• Determining Income:
  • Annual
  • Adjusted
  • Repayment
• Worksheet for Computing Income& Max Loan Amount Calculator
  • March 9, 2022 Version of the Worksheet
• Credit Requirements
• eForms Electronic Application Process(Video, User Guide)

If you have any questions or are uncertain as to how to use these tools, call 7^th Level Mortgage. They will guide you through the process. When applying for the loan, be sure to have your income documents and other qualifying information at hand so the process is a smooth and easy one.

The post USDA Mortgages for 2022 appeared first on 7th Level Mortgage LLC.

As with all loans, whether they be Conventional, Conforming or FHA loans, you need to go through a well trained professional loan officer, who has the backing of the processing, underwriting, and management staff so the process is made as easy as possible and with as few hiccups as possible.

Step 1: You must obtain your Certificate of Eligibility to show that you qualify for the home loan benefit. At the end of the article, I will provide the link to the VA website so you can see if you qualify as well as apply for the certificate itself.

Step 2: 7^th Level Mortgage is THE lender to go through for your loan. Your entitlement is based on the following three statements, and one of them must be true:

• You have never used your home loan benefit OR
• You have paid off a previous VA loan in full and sold the property OR
• You have used your home loan benefit, but had a compromise claim or a foreclosure and repaid the VA in full.

Step 3: As with all other mortgage loans, the lender will base your loan amount on your credit history, income and assets. Although the VA doesn’t have credit score requirements, be sure you ask your loan officer about any restrictions or conditions regarding credit scores for this loan program.

The loan limits that are established correspond to conforming conventional limits. They are established by the FHFA. The FHFA is the Federal Housing Finance Agency. On the same page as the other salient VA loan information is a link to the limits based on the county in which you are purchasing the home. I strongly recommend contacting 7^th Level Mortgage directly regarding these limits. If there are any issues with the Certificate of Eligibility as far as how much of the entitlement is showing on their report, the issues MUST be cleared up. That is what 7^th Level Mortgage is there for. The owner himself is a veteran.

The Certificate of Eligibility is a report of your service history and duty status. Additionally, your spouse may qualify for a VA-backed loan, even if the veteran is missing in action and/or being held as a prisoner of war. As part of the benefits of a VA-backed loan, statistically, 90% of the VA loans that are approved are with no down payment. This is yet another often overlooked benefit that conforming, conventional loans and FHA loans do not have in their menu of lending options.

As I have written before, rates across the board are expected to go up. Jerome Powell, chairman of the federal reserve testified at a recent Senate Banking Housing and Urban Affairs Committee hearing on March 3 that not only are rates expected to continue to increase but we are headed to a recession. In March the Federal Reserve increased rates by .25 basis points. For all loans, including VA-backed mortgages, the rates will increase. One of the tools available for you as a veteran to take advantage of is the lock and shop program that is currently being offered. Why gamble with a market that is tenuous at based and highly unpredictable? Rates could very increase by another .5 basis points as early as May’s meeting.

The chief danger to waiting is that should rates move even higher, the total payment may be more than the debt to income ratio of 41% will allow. All lenders offer loans based on the risk to their portfolios. What this means is that higher debt-to-income ratios mean more risk. Call  7^th Level TODAY, lock in with their lock and shop program and once you have the contract with the realtor in place contact your loan officer so the process is a smooth one.

7th Level Mortgage is a leading one-stop mortgage company providing deeply informed, custom-tailored assistance with each mortgage transaction phase. If you are searching for a home loan in New Jersey, Pennsylvania, Delaware, Maryland, New York, or Florida, please contact us today so that we can determine the best Mortgage Lender to place your loan with and get you the best possible rate and program.

The post VA Purchase Money Loans appeared first on 7th Level Mortgage LLC.

I am going to lay out for you since I am a “numbers kind of guy”, the mathematics and numbers of two scenarios. The overriding question at the end of this article will be, “Do you want to gamble?”

Name                         Amount                     Rate           Term                Payment/Month

Mortgage I                 200,000                      4.5%            30y                     1013

Mortgage II                   25000                      6.0%            REV                     150

Car Note                        25000                      6.27%            5y                        486

Credit Cards                  30000                       16.17%        REV                    408

Total                            280000                       6.042%        ——                  2057

New Mortgage            280000                        3.6%                30y                  1273

SAVINGS                                                                                                      $784/month

The next step is for you to consider your options as to what to do with the savings! Perhaps you would like to apply some of the savings to the principal amount owed on your mortgage. Maybe you have small children and want to start saving for their college education, a car, or a daughter’s wedding. The options for potential savings are unlimited. There is no need for you to wait for lower rates (so you can unlikely save an additional $20.00 per month), gamble with a market that is feeling nervous and jittery about the Russian/Ukrainian situation, higher inflation, and higher gas prices. Looking this particular gift horse in the mouth is an unwarranted gamble.

Another way to look at this scenario is to not only blend all the payments but at the same time refinance into a shorter term as well. This would be ideal for people my age. I am 60 and am getting close to age 67 which is when we are supposed to retire. Would you really want a mortgage payment hanging over your head at age 80?

New Mortgage           $280000                                  3.56%               15y                  2010

As one can clearly see, the rate is much lower than the blended rate of 6.042% but the monthly payment savings is $47.00. Although the monthly payment savings is small in comparison to the 30-year fixed payment, the real savings is in the form of interest saved. The interest savings is 96,495 over 15 years. Monthly, the interest savings is 536.33.  With all of this said, there is no reason to wait. The time to plan for your future is today, not tomorrow, and certainly not next week. The professionals at 7^th Level Mortgage can lay out the whole strategy for you as to the application process (with all the options available to you), the processing of the loan, the appraisal, and everything else you need so the process is streamlined, simple and quick. They will coordinate with a closer in your area so when you go to closing, all the documents that are needed are there and ready for signature. In some cases, depending on when you close, you may even have a one-month reprieve in making a mortgage payment!

Both of the scenarios represent a win-win situation for you. If you select the 30-year option, you will no longer have to keep track of mortgage due dates, car note payments, or late notices on credit card payments and you will have enough security monthly to offset ever-increasing prices for food, gas, and other life’s necessities. Should you select the 15-year option, you will save almost $100,000 in interest paid out over 15 years. Like the 30 year option, you will have one payment instead of five, no more missed payments and a lot more equity in your largest investment (your home) at a highly accelerated rate. Do you want to gamble?  Call 7^th Level Mortgage TODAY!

The post Interest Rate Hikes, Inflation and YOUR Payment appeared first on 7th Level Mortgage LLC.

The Pandemic

Despite what you may be hearing in the media, the pandemic is still not over just yet. While we may be seeing the light at the end of the tunnel with COVID-19 and the devastating impact of the restrictions, loss of jobs, and the resulting nervous atmosphere, economically, security, interest rate volatility, can cause rates to go up markedly one day, yet come back down very SLOWLY the next. By way of example, after the 9/11 attacks, we couldn’t lock rates or get much in the way of work done except for files that were already in process, let alone, lock a rate. Days later, when the markets re-opened, rates shot up by three-quarters of a point in less than an hour and it took months for the rates to come back down. That begs the question…Do you want to gamble with this market? What if the virus mutates AGAIN and the impact on rates is worse than before? The solution is to call 7th Level Mortgage today and utilize the lock and shop program.

Interest Rate Hikes Announced

In November and December of 2021, it was announced that interest rates across the board would be moving higher throughout 2022. This is in response to the inflation rate moving higher as well as the hike in both home values and loan limits. Many people do not understand that for the government or any entity to offer any kind of a positive change for the average consumer, there is a corresponding cost to offset the change. This keeps things on an even keel so neither rates nor home values/loan limits don’t overheat. The solution as I have already indicated is to call 7th Level Mortgage today, lock your rate and shop for your new home. You can even take advantage of a one-time float-down option within 15 days of closing and file commitment.

The Russian/Ukrainian War

One may ask, what difference does what is happening overseas make on interest rates? Generally speaking, stocks become very volatile and very risky for the average investor. When times like this come about and because the markets are globally linked, people will leave the stock market, in terms of investing for their 401ks and other retirement plans and flea to bonds. Bonds are very stable and the bond market doesn’t move (barring a catastrophe) much in an unstable environment. There is one caveat, however. If you are hoping for an escalation in overseas conflicts thinking that rates will fall by more than a quarter-point, you are gambling unnecessarily. Many companies have pulled out of or suspended their operations and relationship with Russia and the Belorussians as well. These kinds of decisions do indeed cause ripples in the markets, and while the impact on interest rates may be slow, the gamble is whether or not something happens that causes rates to jump in the tiny space of a couple of hours. The solution (AGAIN) is to call 7th Level Mortgage today, lock in your rate and take full advantage of this program.

There is no cost to utilize this program, you’re offered a one time float down option within 15 days of closing and the one feature that this program offers is peace of mind because once you’re locked in you need not monitor the rates for the lowest rate possible, the loan officer, processor and underwriter can get your file committed and ready for closing and one other salient feature is TIME. In this day and age, people don’t always have time to get things done. Why not protect your most valuable investment (the purchase of your home) with 7th Level Mortgage and their lock and shop program? If you have any questions the loan officers have been trained on this program and are eagerly waiting for your call. Call 7th Level today!

The post Interest Rates?….Lock in NOW!! appeared first on 7th Level Mortgage LLC.

• Do you have to live in the house? With a Conventional loan, you do not need to live in the house. However, there is a caveat to this. Do NOT tell your loan officer that you are going to live in the house only to rent it out. That would be providing false information to the loan officer and would constitute fraud. With FHA loans, you MUST live in the house.
• Can I refinance with either program? The answer is yes, but there are restrictions on loan to value and credit scores. The maximum loan to value on an FHA loan is 80% and you will incur MIP. With a conventional loan, the typical maximum loan to value is 80%, however, there are exceptions. If you are cashing out equity the maximum is 80%, but if you are simply refinancing and not receiving cash back, the maximum is 97%. Any loan to value over 80% will trigger the requirement that PMI is purchased.
• Will I be eligible for a loan in a high-cost area? Because there are floor and ceiling limits, both FHA and Conventional loans are determined by a variety of factors. FHA loans are determined by the median home value in a county. The loan officer at 7^th Level Mortgage has access to this list and will inform you of the values. Conventional loan limits are determined by county, state, and lender requirements, but will typically follow FNMA and FHLMC guidelines.
• How high can my debt-to-income ratios be? With an FHA loan, you can have a ratio as high as 50%, but with a conventional loan, the lender does not typically exceed 43%.

Private mortgage insurance (PMI) can be eliminated once the LTV is 80% or lower. With an FHA loan, the only way to stop paying the Mortgage Insurance Premium (MIP) is to refinance into a conventional loan. The reason is that the FHA loan is guaranteed by the government, while conventional loans are not. The lender is assuming the risk of default. You will also note that the guidelines for a conventional loan are more stringent than with an FHA loan. Every borrower has their own unique set of issues which include credit scores, debt to income ratios, and loan to values.

Because the loan officers at 7^th Level Mortgage have been trained and licensed by the National Mortgage Licensing System and have continuing education requirement guidelines, they will guide you through the process of qualifying, applying, and closing your loan quickly. If your credit score is 680 or higher, your loan to values does not exceed 80% and your debt to income ratios are 43% or lower, then a conventional loan would be the loan of choice for your needs. If you have issues with credit scores, higher loan to values, and higher debt to income ratios an FHA loan would be the choice for your needs.

One of the features that both FHA and VA loans offer is a streamlined refinance that conventional loans do not offer.

On January 23, 2022, FNMA announced a program called Home Ready. It allows the borrower to finance up to 97% of the home’s value and there is an article I wrote recently about the program. I urge you to read this article as well. The article will proved you with more information about the program, what the qualifying requirements are as well as what documentation you will need when you are applying.

Finally, there WILL be rate increases during the course of this year so I urge you to call the loan officer at 7^th Level Mortgage today so you can start the process and avoid paying on a loan with a higher interest rate.

The post FHA vs Conventional Mortgages appeared first on 7th Level Mortgage LLC.

The criteria for applying and qualifying for  the program are outlined below:

Limited Cash For Down Payment: With as little as 3% down you may qualify for the program. As with all mortgages, any monies that are used for the down payment must be verified as to their source. They must come from a bank account, however, this program has the flexibility built into it to accept other sources for the down payment including gifts, grants, Community Seconds, and, of course, cash on hand. There is no minimum requirement from your funds. A Community Second is a subordinate mortgage that provides the necessary down payment monies needed to meet the 3% down requirement.

Loan to Value Limits: The maximum LTV for this program is 97%.

Adjustable-rate Mortgages: Although adjustable-rate mortgages are allowed under the program, with fixed-rate mortgages still at historic lows, I recommend applying for a fixed-rate loan before applying for an ARM, unless, you are planning on refinancing or moving to another home in the near term. The ARMs that are allowed are a 5/1 with caps of 2/2/5 only, and 7/1 and 10/1 according to Fannie Mae’s standard ARM matrix. You must understand that for qualifying, your income must support the loan at the fully indexed rate.

Loan Limits: In 2021, Fannie Mae announced higher loan limits for 2022. These limits are adjusted annually. You can either go online for the limits or ask your loan officer at 7^th Level Mortgage what those limits are.

Counseling: Homeownership counseling is not optional. It is mandated by Fannie Mae and the course is provided by an outside, third-party provider who has been approved by HUD via the Housing Partnership Network. You will expect to spend an average of four to six hours of your time. The cost for the course is $75 (paid to Framework) so you can learn all the fundamentals of homeownership, your responsibilities when buying and owning a home. After taking the course, you will take an online test and receive a completion of completion.

Rate and Price Adjustments: The Home Ready program has a minimum FICO score of 620. If you are putting down more than 20% of the agreed-to price and your FICO score is greater than 680, the lender can offer you an even better rate and fees. The rate is not set by Fannie Mae, it is up to you to consult with your loan officer to go over what the possibilities are regarding rates and fees.

Mortgage Insurance: Unlike the FHA loan program, the MI is cancellable. Additionally, the cost for the MI is less expensive than FHA’s program.

Debt to Income Ratio: A non-borrower household member’s income can be used as a compensating factor when determining your debt to income ratios. In some cases, debt to income ratio of up to 50% can be considered with the compensating factor. It also allows for a parent to also function as a non-occupant borrower. Keep in mind that the income you are using cannot exceed 80% of the median income for the area based on the census tract.

In this rising interest rate environment and with many folks buying their first home, there is no reason to hold off on entering into reaching the agreement with the seller to purchase your first home. This is an excellent opportunity for young people just starting after college,  newly married people, or those with growing families. 7^th Level Mortgage is the lender to call to obtain all the information you need. They will take the application, order the appraisal and title on the home for you and get you to closing quickly. Make the call…TODAY!

The post Home Ready Qualifying Requirements appeared first on 7th Level Mortgage LLC.

As of March 2021, 69.7 million Americans receive Social Security benefits, and this year one of the largest Cost of Living Allowance increases (5.9%) was passed. However, the cost of Medicare increased from $148.50 to $170.10 per month. The reasoning was because of the cost of medication for Alzheimer’s Disease. Many people in the medical community are dubious as to the effectiveness of this drug and Xavier Beccera has instructed CMS to review this dramatic increase. What increases like this cause is an erosion of the increase via COLA. This should provide for you a reason to “push the button” and call 7^th Level Mortgage TODAY and get the ball rolling. Waiting for rates to come back down is penny-wise and dollar foolish. The thing that works in favor of refinancing is the increase in home values and while rates are still relatively low now is the time for quick action on your part.

According to a FoxNews article from January 12^th,  the consumer price index rose 7% in December from a year ago. This is the largest and fastest increase since June of 1982. Everything you buy will go up in price and if you don’t have a cushion of at least 6 months’ worth of payments, how are you going to afford to put gasoline in your car, food on the table, and increases in other items. The solution is quite clear…call 7^th Level Mortgage today. I submit that waiting is not a financially wise decision.

Another factor that many people are not considering is the Labor Participation Rate. What this is is a measurement of how many people are actively seeking work instead of relying on the government to issue stimulus check after stimulus check. Real wages juxtaposed against the increases I just mentioned show an actual drop in incomes. Contractors are going to be charging even more for their work. If you are on the fence as to deciding whether or not to start those home renovations or improvements, NOW  is the time to do it, call 7^th Level Mortgage before the rates go UP and the costs for these projects go UP as well.

Some of the statistics show an economy in decline. Since January 21, 2021, fuel prices have doubled, heating oil is up 80%, meat is up 40% to 50% and groceries are up 20% to 30%. So, I ask you can you afford to wait to refinance? Perhaps the real question should be how bad do things have to get? All of the indicators show that eventually, many people will not qualify to refinance because their debt-to-income ratios will be too high. Since lenders look at risk, higher loan to values and higher debt-to-income ratios are indicative of risk factors that may be unacceptable.

Ultimately, the decision is yours, but I have been in this business for 20 plus years. I have seen market conditions just like this official statement. I have had borrowers come to me with credit issues and because they waited too long to refinance, they no longer qualified for a loan to fix the many issues they have with their credit, home improvements that were sorely needed as well as allowing themselves breathing room to save money for a rainy day or their children’s educational needs, their retirement or an emergency. I urge you to call 7^th Level Mortgage today so the team can get you to closing quickly and efficiently. If you have refinanced with 7^th Level before, the process will be even easier because they already have your information in their system.

The post Can You Afford to Wait to Refinance? appeared first on 7th Level Mortgage LLC.

The requirements for these loans are as follows:

• You cannot earn more than 80% of your census’s tract median income. Your loan officer can check into what that amount is based on your geographical area. If your area’s median income is $100,000 per year your income must be $80,000 or LESS.
• Like FHA, you must agree to take a 4-6 hour homeownership education course.
• Your median FICO score must be at least 620.
• Your debt to income ratio cannot exceed 50%.

Eligible properties include:

• Condominium Units
• Planned Unit Developments
• Co-ops
• Manufactured Homes
• Multifamily homes with 2, 3 or 4 units. If you are looking to purchase a multi-family dwelling, your credit score must be at least 680 or higher. Second homes and investment properties are not eligible for financing via this program.

With higher home values and mortgage rates on the move, I recommend applying today, especially if you’re already under contract to purchase a home. The loan officers and the team at 7^th Level Mortgage are ready for your call and want to work with you to help you obtain your share of the American dream…homeownership!

Unlike the other available mortgage programs, some income flexibilities are available.

Accessory Unit Income:

Suppose you are buying a home with a so-called in-law suite upstairs with a functioning separate kitchen and bathroom. The income that you are deriving from that unit can be applied to your income stream to a maximum of 75%. The 25% that is subtracted is to accommodate the vacancy factor or loss in the event the tenant abandons or damages the property. Keep in mind, you must occupy one of the units because this program is not eligible for investment properties.

Boarder Income:

This is an excellent opportunity to use income that is received from a roommate. Typically a roommate does not have a bona fide lease because the living situation is typically for short-term purposes. The calculation that is used to derive the income is up to 30% of the qualified income, multiplied by at least 9 months. The shared residency must be at least 9 months, so people that are just starting to live in a home as a shared residency must wait until that requirement is met. Be prepared to show copies of the canceled checks (front and back).

For many buyers, this will be their first time buying a home and that is why the education course is so important. Because there are different rules and regulations for condominiums and planned unit developments, versus a single-family stand-alone residence, this course will cover all the covenants and restrictions one will agree to when buying a condo or a PUD. 7^th Level Mortgage will refer you to a third-party course provider in your area. There are exceptions to the course requirement. As long as the agency is HUD-approved and completed before closing and a Community Seconds mortgage or down payment assistance program is being sought, a waiver may be granted. Lack of internet access, a disability, and other issues may necessitate the need for a telephone conference call or an in-person class instead of utilizing an continue reading online course to make the requirement. If you have already taken a course on homeownership, a completed Fannie Mae form number 1017 can provide evidence that the course has already been taken.

Finally, 7^th Level Mortgage is excited to offer this program in their menu of homeownership options. With mortgage rates expected to go higher and with higher loan limits now available, make the call TODAY!

The post Home Ready Program for 2022 appeared first on 7th Level Mortgage LLC.

Under Social Security Regulations, the cost of living allowance moved up by 5.9% effective the first of this year, BUT, a lot of people don’t know that food has gone up by 5.3% and the cost of fuel has gone up a whopping 30%. The 5.9% increase barely puts a dent into offsetting the increases I just mentioned. Additionally, inflation across the board for everything isn’t helping our seniors either. That is where a reverse mortgage and the professionals at 7^th Level Mortgage come in.

Here are some reasons why you would want to apply today for a reverse mortgage. First of all the maximum loan amounts have increased and the limit on a reverse mortgage is $970,800 for all areas. What this means is that if you are in a very expensive in which to live, you can pull out more equity as a payment to you as a lump sum or on a monthly schedule. The choice is yours.

A reverse mortgage unlike a regular mortgage is one where the lender pays you via an advance on the equity you have in your home. Usually, the older one gets, the more equity you have in your home. That means you can access more ready cash for yourself, your children, and your grandchildren. The difference is you are still here and there is no need to go through probate after you have passed away. The money that is disbursed to you after closing is tax-free as well.

There are 3 kinds of reverse mortgages, single-purpose, proprietary, and federally-insured, aka home equity conversion mortgages. With all three types, you keep the title to your home. Another great part of this kind of loan is that it has NO impact on your Social Security or Medicare benefits.

There are fees and costs to obtaining a reverse mortgage. They include an origination fee (that is how the lender gets paid) as well as servicing fees over the life of the loan. For federally-insured HECMs, there may be mortgage insurance premiums as well. Over time, you will owe more because the interest is added to the back end of the loan and when you pass away or sell the home, the loan and the interest owing are due. Most of these loans are tied to an index, making the loan variable. However, you may want a loan with a fixed rate. Those are available also but only for HECMs. The loan officer at 7^th level mortgage will be more than happy to discuss with you all the options that are available so you can choose the one that is most comfortable with. The interest on a reverse mortgage is not tax-deductible yearly until the loan is paid off either in full or partly.

If you signed the loan documents yourself and your spouse didn’t, he or she may be able to stay in the home after you pass away as long as the taxes and insurance premiums continue to be paid. Your spouse will not be able to take any more money however from the loan proceeds. If you want your heirs to keep the house instead of selling it, your estate would not have to pay more than the appraised value of the home.

The following are the factors that are considered to qualify for a reverse mortgage:

• Your age
• The type of reverse mortgage chosen
• The appraised value of the home
• Current interest rates and financial assessment of your willingness and ability to pay property taxes and homeowners insurance premiums. You will meet with a counselor from an independent government-approved housing counseling agency. The counselor will explain the loans costs and financial implications of obtaining a reverse mortgage.

There are payment options with a HECM:

• A single disbursement
• A term option: This means you will receive a set amount of money each month for a specific amount of time.
• A tenure option: You will receive a set amount of money as long as you live in your home.
• A line of credit: You can take out from the loan some of the proceeds as your needs change or a combination of monthly payments and a line of credit.

Call 7^th Level Mortgage today to go over all your options and secure your future.

The post Reverse Mortgage Update for 2022 appeared first on 7th Level Mortgage LLC.

You do not need a drill…you need a hole in a wall or a piece of furniture. The point is for you to use the tools that are at your hands, namely the equity you have in your home. The goal is much more important than the tool. The holidays just concluded. Like most Americans, you probably used quite a bit of the available balances on your credit cards, some to the point where they are maxed out. Here is where the tool (the equity) comes to the fore. Here are a couple of facts. The average consumer runs up credit card balances to very high levels during the holidays. Another fact is that the interest on these credit card balances is NOT tax-deductible. Finally, the last fact is the interest on a mortgage payment IS tax-deductible. To pay interest on credit cards needlessly makes no logical or financial sense.

You just had a baby or are expecting one and you want to upgrade or renovate the room where the child will sleep. NOW is the time to get your plans, specs, and permits in place as well as for you to call 7^th Level Mortgage to get the cash out that will need to not only pay for these improvements but also set aside a tidy sum for the child’s college fund. What you are doing is using the cash out with the added benefit of tax deduction. With the rules constantly changing ass to what can be deducted from your taxes and what can’t, to hesitate is akin to playing Russian Roulette with your financial future, not to mention the baby’s.

What are the chances that if you took the spare tire out of your car, you would have a flat…that day?! The chances are better than average. Emergencies happen every day. Unfortunately, people do not always have the money for emergencies, like losing a job. The recommendation is that we have at least 6 months worth of monthly bill payments set aside to mitigate the damage when you lose a job. This is just the market and the conditions are just right to set up that emergency fund. Due to the COVID-19 pandemic and with many he has a good point people being ill-prepared for this particular emergency, jobs were lost, renters faced evictions (despite federal laws to the contrary) and mortgage payments were missed. The money that you could have cashed out of your home would have been the spare tire that gave you some breathing room and flexibility and 7^th Level Mortgage is THE lender to go to get this set up.

You have a first position mortgage and a HELOC with a balance. How about combining the two into one payment? The blended rate between the two loans is higher than the average 30 years fixed-rate mortgage is today. In essence, you would have a better rate overall, one convenient payment, tax-deductibility as well as peace of mind. Finally, were you to pay off the first mortgage, HELOC, and the credit cards I mentioned above, your financial stability would greatly improve and with higher loan limits as well as home values on the increase, you would still have equity and the breathing room you need to be more comfortable? The wisest choice is to take the time to call 7^th Level Mortgage TODAY. The adage that he who hesitates is lost is applicable today…I urge you to make the call!

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