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December 30, 2022
Retirement is an exciting time in a person’s life, but there are also concerns over how to maintain the same lifestyle. Some older adults consider taking out a reverse mortgage so that they can stay in their home and/or sustain their same life. But is a reverse mortgage really the best option?
When considering whether or not to take out a reverse mortgage, there are pros and cons to be aware of. Let’s cover what they are, and why selling your house for cash in Maryland might be the better option.
What are the Pros to a Reverse Mortgage?
A reverse mortgage is a loan borrowed against the equity you have in your home. Instead of paying the bank each month to build up equity, the bank pays you in a series of installments. Reverse mortgages work well for paying off debt or covering home improvements.
The advantages to a reverse mortgage are:
- You can stay in your current home, though you will be responsible for maintaining the home and keeping current with property taxes and homeowners insurance.
- You can increase your cash flow in a variety of formats: a lump sum, monthly payments or a line of credit. This way, you can sustain your lifestyle, travel or pay your medical bills.
- You can make improvements around the home so that it’s more conducive to aging in place, or tackle projects that you didn’t get to years ago.
What are the Cons to a Reverse Mortgage?
Even though a reverse mortgage can give you additional income during your retirement years, there are some drawbacks to be aware of.
- You’re still responsible for maintaining the home, which can become more difficult as you age.
- There are several costs associated with taking out a reverse mortgage such as origination, appraisal, title and insurance fees. These fees can be rolled into your loan or paid out of pocket.
- The loan must be paid back. This typically happens when you go to sell your home – you can use the proceeds to pay back the lender.
When Selling Your Maryland Home is the Best Option
If you need extra cash and/or want to maintain your same lifestyle, selling your house for cash may be the better option. You won’t get to keep your home, but you can buy something that’s smaller and easier to maintain. Additionally, you don’t have to worry about using the money for repairs or maintenance, and you can even set money aside as an inheritance for your adult children.
4 Brothers Buy Houses buy homes throughout Maryland. We will provide you with a free, no obligation offer, and if you accept, we can close in about two weeks. We purchase homes as-is, so there is no need to worry about appraisals, inspections, repairs, closing fees and more. The transaction is direct and between you and us!
To get a free cash offer on your Maryland property, contact our cash buyers today! You can then see if a cash sale is the best option for your retirement.
December 20, 2022
Deciding whether you should sell your home or wait always deserves careful attention. There are a number of factors that influence this decision – some are in your control and others are not. For example, people are motivated to sell their homes when they know they can get a good offer, which is driven by high demand and low inventory.
But even if the market is in favor of buyers, you may still have no choice but to sell due to a new job or family illness. In this case, you’ll want to research your options and sell your property in the most convenient and economical way, whether it’s listing with an agent, selling on your own or working with a cash buyer in Virginia.
The good news is that no matter what you are facing in 2023, it will still be a good time to sell. There are predictions for a housing crash and economic recession, but people are still upsizing, downsizing and relocating. Here are three good reasons why 2023 will be a good time to sell.
Demand Far Exceeds Supply
In October, there were over 25,000 homes available in Virginia, down 24 percent year over year. This means that there are still less homes on the market compared to other years. There are also plenty of buyers looking for homes to buy, so if you have a desirable property, you should have no trouble selling it. You may even get several bids, driving up the price!
However, if your house is not in the best condition, you could have trouble selling it. Even though there are more buyers than houses, people still prefer homes in good condition. A property that requires extensive repairs and updates will have to be sold at a deeply discounted price. In this case, you’re probably better off selling to a cash investor.
Interest Rates are Still Low
Yes, interest rates are still much higher than what we’ve seen in recent years, but they are still lower than the 7.76 percent average. Rates for a 30-year fixed mortgage are around 6 percent, and slightly less for a 15-year fixed rate. While these interest rates have pushed some people out of the housing market, they are not high enough to keep serious buyers out.
Not to mention, there’s a possibility that interest rates can continue climbing. In 1981, for example, interest rates were a whopping 16.63 percent, according to Freddie Mac data. For those who are looking to buy, today’s interest rates are still reasonable.
Appreciation is Still Growing
The first quarter of 2022 brought double-digit appreciation to home values. While the rate of appreciation is expected to slow at the end of the year and into 2023, it’s not expected to reverse, and that’s a good thing. This means that you can sell your house in Virginia for more money, and walk away with more in your pocket even after paying all your fees!
Of course, if you want to avoid paying realtor commissions, listing fees, staging costs, etc., you can sell your house for cash! There are absolutely no fees associated with this type of sale, which means you get to keep your full cash offer!
These are three great reasons why selling your house in 2023 will still be worthwhile. The market may not be as competitive as it was earlier this year, but that doesn’t mean it’s not a good time to sell. The key is choosing the best method to sell and finding the right buyer. Fortunately, you can do both with 4 Brothers Buy Houses. Request your free cash offer today!
December 7, 2022
When you’re facing financial hardship, it’s easy to fall behind on your mortgage payments. This is probably the biggest bill you have to pay each month, so it’s a problem when you don’t have enough income coming in. And once you skip a mortgage payment, the late fees start adding up.
Fortunately, you do have options, but you’ll need to act fast. The longer you go without paying your mortgage in Maryland, the closer you get to foreclosure. Below are five ways to catch up on your mortgage if you’re behind on your payments.
Forbearance is best for people who are facing a temporary financial hardship or loss of income. It places your mortgage on hold, typically for six months. During the forbearance period, it shows that you are current on your mortgage. You will then catch up on the payments through a lump sum or installments. The downsides to forbearance is that you stretch out your mortgage term and pay more in interest.
A loan modification is a good option for people who have the money to resume their mortgage payments but need help catching up. It is similar to refinancing because you can get a new loan with a longer term or a lower interest rate. However, a loan modification allows you to avoid higher interest rates and closing costs, and brings you to a payment that you can afford. You’ll typically have to prove a financial or personal hardship to qualify.
Another option you might have is a repayment plan, which allows you to repay your lender the money that you owe in a series of installments. Your lender will have to approve this, and you’ll have to show that your income is stable. Typically, lenders will take the past due amount and spread it out over several months. Again, you’ll need to have a stable income and be able to afford your payments to make this work.
Reduce Your Monthly Payment
You can also try cutting down your monthly payment by lowering your taxes and homeowners insurance. The trouble with this approach is that it probably won’t reduce your monthly payments by that much. Nevertheless, it can be a way to keep your home and afford your mortgage payments. For example, once you establish 20 percent equity in your home, you can remove private mortgage insurance (PMI).
Sell the House
What if you are behind on your payments and you don’t want to keep your home? You can sell your house in Maryland. A great option is to do a cash sale. With this arrangement, you sell your house for cash and use the money to pay back the lender. Depending on how much you owe on the house, you may even be able to walk away with money in your pocket!
Cash sales also offer other advantages:
- Sell in just two weeks or less
- Pay no realtor commissions
- Pay little or no closing costs
- Avoid a home appraisal and inspection
- Work directly with the buyer – no middlemen
- Sell house in its current condition
- Get cash wired to you at closing
To get a free cash offer on your house, contact 4 Brothers Buy Houses today. As long as your home hasn’t gone into foreclosure, you can sell it to us, and we’ll pay you in cash! You can then use this money to pay back your lender and start fresh! We buy houses all over Maryland, as well as Washington DC and Virginia!