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Feldman: What’s one of the newest things you feel that advisors should be thinking about today?

Jordan: I’ve recently become an advocate for reverse mortgages. I used to hold up a garlic and the crucifix whenever I heard about reverse mortgages. But for people over age 62, there’s $10.2 trillion tied up in their houses. And reverse mortgages are not just for the wealthy people.

You’ve got some poor guy who bought a house for $25,000 some 30 years ago. It could be worth $250,000 now. For the first time in his life, he has access to funds.

And so there could be the possibility of using a buffer asset. If you’re in a situation like recently, when the Dow went down 1,000 points in a day, that’s volatile. Well, guess what? You shouldn’t be taking money out of your account. Perhaps you could shift to another pocket. And it could come from your reverse mortgage. And the money comes out on a tax-free basis. And so it allows the portfolio to heal, the classic buffer-asset type of approach. That’s one thing to do.

Another benefit a reverse mortgage could provide for someone who reaches age 62 is to provide a Social Security bridge. This would allow you to obtain the funds you might need and then wait until age 67 or 70, when the monthly payout would be significantly more. If you wait till 70, it’s 77% more.

With IRMAA [income-related monthly adjustment amount], how much money you make in retirement dictates the premiums you pay for Medicare. Well, if you use some of your income from your reverse mortgage, it’s tax-free, and so using it could help lower Medicare premiums.

So there’s a lot of flexibility there.

People have to begin to use the wealth they have in their home. For the most part, it’s three-quarters of a person’s net assets in terms of the average person. And they’re able to use that wealth instead of just saying, “The house is paid off.” This could be helpful, especially because people are living a lot longer.

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Are There Different Types of Credit Scores? Here’s What You Should Know

Stacey Sprain
Home.com Contributor
11/26/2021

If you’re used to checking your credit score through a free app or credit card account, you might be surprised to know that the number you see there doesn’t tell the whole story. There are several types of credit scores.

In fact, the credit scores you see online through free credit report and scoring sites are probably not the same credit scores a lender will use when you apply for a loan or credit.

“It is important to make a distinction between consumer credit scores and the FICO scores that lenders use,” said Dylan Hoffman, a senior mortgage consultant with Fairway Independent Mortgage Corporation (Fairway owns Home.com). “Consumer scores will generally be higher because they are on a larger scale. This can get confusing because there are also different FICO scoring models, depending on the type of lender.”

Below, we explain the three most common credit scoring models you’re likely to run across in the market.

Read Original Article

Holiday Fire Safety

During the holiday season, homes are often beautifully decorated with candles, fresh garlands and trees adorned in lights. While the wonder of the season is exciting, it is important to be aware of potential fire hazards. Follow the tips below to make sure your home is festive and free of potential danger.

1. If you choose to decorate a live tree, try to find one that is fresh. Fresh trees are safer for your home because they are less likely to catch fire. Some indicators of a fresh tree are:

• Vibrant green color with needles that are not easily plucked
• A trunk that is sticky with resin

Watch out for trees that have a greenish cast to their trunks and branches, as some growers spray trees with green paint to make them more appealing to buyers.

1. When decorating your Christmas tree (live or artificial), ensure your tree won’t start an electrical fire. Some good tips include:

• Use only lights that have been tested for safety (a label from an independent testing laboratory should appear on the box)
• Check each set of lights for broken sockets, frayed wires or loose connections
• Use a maximum of three standard-sized strings of lights per single extension cord
• Keep cords and lights away from the tree’s water supply

1. To dispose of your tree, take it to a tree recycling center or have it hauled away by a community pick-up service. Never burn trees, branches or needles in a fireplace or woodstove. Fir trees and pine trees have a copious amount of sap, which can explode.

For more on holiday fire safety, click here. If buying a new home is on your list of resolutions for the new year, I would welcome the opportunity to speak with you about your homebuying needs! Let’s plan to meet soon.

Real Estate Appreciation Data: Q4 2018

The Federal Housing Finance Agency recently released year-end price figures. Just click on the image below to explore an interactive map with the most up-to-date rates of change in home values, as well as appreciation rates over a number of different time periods. Data at this site is updated quarterly, so feel free to bookmark it for easy access.

Understanding recent and long-term trends can help you remain an informed consumer, whether you’re comfortable in your home or considering to move to a new home.

If you have questions or if we can ever be of service to you, your family and your friends, please let us know. We are here to help and happy to do so.

2017 Seattle Five Star Mortgage Professional Award

“This year’s Seattle Five Star Mortgage Professional award winners are announced in the January issue of Seattle magazine, and David Haley is among the winners! The Five Star award is presented to local professionals who demonstrate outstanding service to their clients. We receive nominations from local homebuyers and sellers, who evaluate professionals on the services they provide… Congratulations once again to David and all of our 2017 Five Star Mortgage Professionals!”

Dan Zdon
CEO, Five Star Professional

Click below to see Facebook post by Five Star Professional

Do Mortgage Credit Inquiries Affect Your Credit Score?

When you apply for a home mortgage loan, your Mortgage Planner will check your credit score. This is reported to credit agencies as an inquiry and lets creditors know that you are considering taking on new debt. An inquiry can have a negative, but small, effect on your credit score. While still small, inquiries can have a larger effect if you have few accounts or a short credit history. However, inquiries are a mandatory part of applying for a home loan, so they cannot be avoided.

Inquiries made within a 45-day window are only recorded on your credit report as a single inquiry because creditors understand that you are only going to buy one home. This means that multiple lenders can check your credit as long as it is within 45 days of the initial inquiry. It is important to note that the 45-day window only applies to mortgage loans; credit card and other credit inquiries are processed separately.

When you check your credit on your own, it does not have an affect on your score. Before you apply for a home mortgage loan, you should request a credit report to dispute any errors that you see. Because resolving disputes could take longer than 45 days, this will avoid your lender having to submit two inquiries if there are errors on the original report.

For more information about mortgage credit inquires, click here.

When you are ready to purchase a home, I would love to talk to you about your home financing options. Call me today to set up an appointment!

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Decorating Kid’s Room on a Budget

Decorating a child’s room can get pretty expensive, especially if your little one is your first. There are just so many cool things out there and sometimes, parents (and grandparents) can get too excited and spend a lot of money. So, whether you want to redecorate your kid’s room or are just starting to put the nursery together, you will find these inexpensive ideas helpful for you project.

1. Art Gallery

You can create a very inexpensive gallery with your kid’s art or pictures from old kid’s books and frames that you, your family or friends do not use anymore. You can even include your children and have them collect flowers and/or leaves they like and put them in a piece of paper, there are endless ways to do this!

2. Furniture Makeover

Thrift stores and garage sales are full of hiding gems; find a piece of furniture you like and add your own style to it, or you can repurpose it, like this old cabinet turned into a small kid’s diner.

3. Handmade

Get creative with the things you have at hand, use some colored paper to cut out fun shapes, you can even make your own pompoms, and if you are into sewing, check out this DIY less than $10 teepee.

4. Check out IKEA

Ikea is known for having low-priced, and pretty cool things. But if you are really creative you can make the most of what you get at the store. Just take a look at how these Ikea products have been transformed!

5. Use wall decals

An easy way to give your kids room character is by using wall decals, no need to be the best artist when you can get ready to go decoration for your wall. Wall decals can get to be a little expensive, but some stores, like Target, have cool and reasonably priced decals.

6. Chalkboard paint

Paint a wall with black chalkboard paint, your kids will have a giant canvas to draw on. You can also use this to write reminders or routines for your kids.

7. Small spaces

Make the most of the space you have available, there are really cool beds and room furniture that come with extra storage. Or you can use what you have and reorganize it, like this parent whose kid’s closet was out of control.

8. Get to know Pinterest

Pinterest, the world’s catalog of ideas, is the to-go website for people who love DIY. This platform is full with ideas and we know you will love it!