Robert Gaccione

Director of Commercial Lending

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A reverse mortgage, officially labeled as a Home Equity Conversion Mortgage, or an FHA HECM, is a bit counterintuitive at first glance. Contrary to a standard or “forward” mortgage, a reverse mortgage pays the homeowners instead. It has shown to be an excellent option for homeowners who may be “house rich,” but perhaps, “cash poor,” or for those who would like to supplement their income in their retirement years. There are also no monthly payments required with a reverse mortgage. Here are some of the more common questions asked about a reverse mortgage. How much can I qualify for?  That’s a moving target because the amount of available funds is based upon different factors such as the current appraised value of the property and the age of the youngest borrower occupying the property. A loan-to-value of 60% is common. Does the lender take ownership of the property?  No, title remains in your name with a reverse mortgage. The main difference with a reverse mortgage is that interest is accrued and no payments are made while living in the property. Ownership does not change. When do I pay off the reverse mortgage?  The reverse mortgage is paid off when the last borrower on the application no longer occupies the property. What about my mortgage that I have now?  With a reverse mortgage, proceeds from the new loan will go toward paying any outstanding mortgages with the remaining balance made available to you. How do I get my funds?  A reverse mortgage is paid out in one lump sum, in monthly payments, in a line of credit, or a combination of any of these options. Is this ...

VA mortgage loans have always been a great option for veterans or current active military members, but surviving spouses who have lost a military-employed husband or wife also have the potential to qualify for benefits as well. Some of those benefits include no down payment, better terms and interest rates, 100% financing, and more. So, how does a surviving spouse of a veteran or military member see if they qualify for a VA mortgage loan? The widow or widower would be eligible if they have not remarried and: Survived a spouse who died in service or due to a service-related injury. Survived a spouse that was MIA (missing in action) or a POW (prisoner of war) for at least 90 days (limited to one-time use of benefit). Had a spouse that served in the U.S. Army, Navy, National Guard, Coast Guard, Marine Corps., or Air Force. Reservists who served at least 6 years are also eligible. Survived a spouse who was eligible for disability compensation at the time of death and was rated continuously totally disabled for the specified period of time (10 years prior to their death or 5 years from the date of their discharge). If your spouse was a POW, they would need to have been rated totally disabled for at least one year prior to their death. Surviving spouses may also qualify for a VA mortgage loan refinance, which would allow you to change your loan term, lower your monthly payment, or possibly obtain lower interest rates if they’re available. VA mortgage loan refinances can also be used to access cash for home improvements, medical bills, or other high-interest debts that could possibly be consolidated. All in all, VA mortgage loans are an ...

Switching Terms with a Refinance

Feb 18
12:55
PM
Category | Blog
Although rates are always changing, as of right now, they have quietly fallen over the past few months. Many people have waited for them to drop before considering a refinance, but now might be to the time to check with your loan officer to get a rate update. Sometimes, a refinance can even make sense if you’re switching from a longer term mortgage to a shorter one. In order to change the terms of your mortgage, you have to refinance. Refinancing is when another lender agrees to buy out your existing mortgage with a new one that has new terms. In order to determine whether refinancing is the right thing for you and your situation, you should consider the following factors first… What New Terms Can You Get? How do the new terms differ from your current terms? The difference in rates is obviously a large factor, but you also want to consider duration, loan type, prepayment penalties, and more. How Much Will You Save? When you stack up your current terms against the potential new mortgage, how much would you really end up saving by refinancing? Make sure you work out the numbers with your loan officer, and don’t forget to account for the closing costs of a refinance mortgage. Follow The Mortgage Rate Projection Will interest rates continue to go down? Have they reached a standstill? You might want to move quickly and make sure you can lock the rate with your mortgage lender. Your Ultimate Goal When deciding whether or not to refinance, the most important thing you need to consider is your overall financial goal. Is this the right time for you and your current situation? Will refinancing help you obtain your ...

When consumers first think of refinancing an existing mortgage loan, typically it’s because there’s new out about falling interest rates. In today’s environment however, especially with mortgage rates being as low as they are for such an extended period of time, refinancing to lower a monthly payment is happening with less and less frequency. But it’s not always just about the current rate on a mortgage compared with market rates. A mortgage refinance can still make sense in New Jersey or other areas in this environment for many. One reason to refinance now would be to consolidate debt. By paying off higher interest debt with a lower rate mortgage loan can save money. The most competitive interest rates are typically those associated with a first lien mortgage. Higher interest rates can be attached to other consumer credit obligations such as credit cards or automobile loans, student loans or home equity lines of credit, or HELOCs. To see if this strategy works for you, take a few moments and gather your most recent credit card and consumer debt statements. List each account, the current balance, minimum monthly payment and interest rate associated with that account. When finished, take a look at the total monthly payments as well as the total outstanding debt. Next, add the amount of these debts to your current mortgage balance. Then, contact your loan officer to get an update on where mortgage rates are today and compare what your new mortgage payment would be if you consolidated all your higher interest debt into a new, cash-out home loan. Consumers can lower their monthly payments with a refinance, or they can take that monthly ...

Mortgage rates rose steadily during the first half of 2018, and have since leveled off a bit. Looking forward, a new round of industry forecasts suggest that mortgage rates in New Jersey and nationwide could hover just below the 5% range for much of 2019. Mortgage Rates Up Since the Start of 2018 On average, mortgage rates have risen by roughly 1% since the start of this year. The average rate for a 30-year fixed home loan was 3.95% during the first week of January, according to Freddie Mac. That average had risen to around 4.94%, as of mid-November 2018. Those who are planning to buy a home next  year are probably wondering: What are mortgage rates in New Jersey expected to do in 2019? Will they rise gradually over the coming months, or continue to hover within their current range? While there’s no way to answer such questions with certainty, a pair of new mortgage rate forecasts have shed some light on the subject. Here’s what the experts are predicting, as of November 2018. Forecasts Predict That Rates Could Hover Just Below 5% No one can predict future rate movements with complete accuracy. There are too many variables involved, and those factors are ever-changing. But there does  seem to be a general consensus among industry analysts. And those forecasts suggest that rates could remain relatively stable over the coming months. The first forecast came from the Mortgage Bankers Association (MBA). Last month, the industry group predicted that the average rate for a 30-year fixed mortgage in New Jersey and nationwide would average as high 5.1% in 2019. The economic research team at Freddie Mac offered a ...

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