Sunset Yoga and Meditation Event With Park Place Financial Group
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A reverse mortgage is a financial product that enables homeowners,62 years of age and over, to convert a portion of their home equity into cash while still retaining ownership of their property. Unlike traditional mortgages where homeowners make monthly payments to the lender, in a reverse mortgage, the lender makes payments to the homeowner. The loan is typically repaid when the homeowner sells the property, moves out of the home, or passes away.
Reverse mortgages can be an attractive option for retirees who have substantial home equity but limited income or savings. By accessing the equity in their homes, they can receive a regular stream of income or a lump sum payment to help cover living expenses, healthcare costs, or other financial needs. The amount that can be borrowed through a reverse mortgage is based on factors such as the borrower's age, the value of the home, and current interest rates.
It's important to note that reverse mortgages are loans and must be repaid eventually. Interest accrues on the loan balance over time, which means the total amount owed increases over the life of the loan. When the loan becomes due, either through the sale of the home or the borrower's passing, the proceeds from the sale are used to repay the loan, with any remaining equity going to the borrower or their heirs.
There are several types of second mortgages that homeowners can consider based on their financial needs and goals. Here are some common types of second mortgages:
Home Equity Line of Credit (HELOC): A HELOC is a popular type of second mortgage. It provides homeowners with a revolving line of credit that they can borrow against as needed, up to a predetermined credit limit. The borrower can access funds during the draw period, usually around 5 to 10 years, and make minimum interest-only payments. After the draw period ends, the repayment period begins, during which the borrower must make principal and interest payments. HELOCs often have variable interest rates tied to a benchmark such as the prime rate.
Closed-End Second Mortgage: A closed-end second mortgage, also known as a home equity loan, is a lump-sum loan that is disbursed to the borrower upfront. The borrower receives the entire loan amount at once and repays it over a fixed term through regular monthly payments. Closed-end second mortgages typically have fixed interest rates, providing stability in repayment amounts.
Cash-Out Refinance: A cash-out refinance involves replacing the existing mortgage with a new one that has a higher loan amount. The homeowner can borrow against the equity they have built in their property and receive the difference in cash at closing. The borrowed funds can be used for various purposes, such as home improvements, debt consolidation, or other major expenses. The homeowner repays the new mortgage through regular monthly payments.
Second Mortgage for Down Payment (Piggyback Loan): A second mortgage can be used as part of a piggyback loan structure to avoid paying private mortgage insurance (PMI). In this scenario, a borrower takes out a second mortgage to cover a portion of the home's purchase price, typically 10% or 15%. The first mortgage covers the majority of the purchase price, usually 80%. The borrower contributes a down payment, typically 5% or 10%. This structure helps borrowers avoid the cost of PMI when the down payment is less than 20%.
Inquiring about life insurance when obtaining a home loan and for business purposes is crucial for both investment and family protection. Let's explore the reasons why:
Financial Security for the Family: Life insurance provides a safety net for your family in the event of your untimely demise. If you pass away, the life insurance payout can replace the lost income and help your family maintain their standard of living. This is especially important when you have dependents or if you're the primary breadwinner. The payout can be used to pay off outstanding debts, such as a home loan, and cover ongoing expenses like mortgage payments, education costs, and daily living expenses.
Protecting Your Home Loan: When obtaining a home loan, the lender requires collateral, usually the property itself. In the event of your death, if there isn't sufficient life insurance coverage, your family may struggle to make the mortgage payments. This could potentially lead to foreclosure and the loss of the family home. By having adequate life insurance coverage, your family can use the payout to settle the home loan, ensuring they can continue living in their home without financial strain.
Business Continuity: If you're a business owner, life insurance can be essential for business purposes. If you have business partners or shareholders, a life insurance policy can be structured to fund a buy-sell agreement. This means that in the event of your death, the policy payout can be used to buy out your share of the business, providing financial stability for your family and ensuring the business continues to operate smoothly.
Estate Planning: Life insurance can also play a vital role in estate planning. It can provide liquidity to cover estate taxes, ensuring that your loved ones don't have to sell assets, such as the family home or business, to meet the tax obligations. Life insurance proceeds can help preserve your estate and pass it on to future generations.
Peace of Mind: Lastly, life insurance offers peace of mind. Knowing that your family will be financially protected and taken care of in the unfortunate event of your death can relieve a significant amount of stress. It allows you to focus on building your business, enjoying your home, and living your life with confidence, knowing that you've made provisions to safeguard your loved ones' financial future.
Delayed financing is a mortgage strategy that allows homebuyers to purchase a property with cash and then quickly refinance the property to recoup their funds. This approach is particularly beneficial for buyers who want to make a strong cash offer, which can be more attractive to sellers, and then secure a mortgage afterward to recover their cash for other investments or liquidity needs.
Here’s a breakdown of how delayed financing works and its benefits:
A VA Interest Rate Reduction Refinance Loan (IRRRL), also known as a VA Streamline Refinance, is a mortgage refinance program offered by the U.S. Department of Veterans Affairs (VA) for eligible veterans, active-duty service members, and certain reservists and National Guard members. The primary goal of the VA IRRRL is to help borrowers reduce their interest rates and monthly mortgage payments with minimal paperwork and hassle. Here are some key features of the VA IRRRL:
Simplified Process: The VA IRRRL requires less documentation and underwriting compared to other types of refinance loans. Often, an appraisal or credit underwriting package is not required.
Lower Interest Rate: The new loan must have a lower interest rate than the existing VA loan unless you are refinancing an adjustable-rate mortgage (ARM) into a fixed-rate mortgage.
No Cash Out: The VA IRRRL does not allow the borrower to take cash out of the equity built in the home. It is strictly for the purpose of lowering interest rates and monthly payments.
Closing Costs: Closing costs can be rolled into the new loan, so borrowers may not need to pay these costs out of pocket.
Occupancy Requirements: The borrower must certify that they previously occupied the property as their primary residence. However, they do not need to currently occupy the home to be eligible for a VA IRRRL.
Funding Fee: The VA IRRRL requires a funding fee, which is a percentage of the loan amount. This fee can also be rolled into the loan amount. Certain veterans, such as those receiving VA disability compensation, may be exempt from the funding fee.
No Maximum Loan Amount: There is no maximum loan amount for a VA IRRRL, but the new loan amount cannot exceed the sum of the existing loan balance, allowable fees and charges, and up to two discount points.
Unwind and de-stress with a relaxing 1 hour sunset yoga session, meditation, and breathwork class at the beautiful Cielo Rooftop Deck.
This is not your everyday yoga class. Completely unwind utilizing our wireless headphone technology and enjoy the beautiful outdoors while the headphones block out all external distractions. Listen to the music, the yoga instruction, guided meditation, and breathwork in your ears. Disconnect to Reconnect to yourself in this hour of relaxation.
Let go of the day's worries as you stretch and breathe in the fresh evening air. This in-person event is the perfect way to rejuvenate your mind, body, and spirit while enjoying a stunning sunset view.
No matter your experience level, all are welcome to participate in this calming yoga practice. Bring your mat, water bottle, and positive energy for an evening of self-care and relaxation. Don't miss out on this unique opportunity to Get Fit Financially both physically and mentally!
Park Place Financial Group
Joe Costa/Marni Wolf
402 West Broadway
Suite 400
San Diego, CA 92101
619.990.7552
www.parkplacefg.com
info@parkplacefg.com
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At Park Place Financial Group, we firmly believe that financial wellness goes hand in hand with physical and mental well-being. That's why we organize "Get Fit Financially" events, where we combine financial education with fitness and wellness activities. These events provide a unique opportunity to learn about money management, investment strategies, and healthy living practices, all in one fun and engaging setting.
Join us at our "Get Fit Financially" events and take advantage of our services to enhance your financial well-being. We aim to empower you with the knowledge and tools necessary to achieve financial freedom and lead a healthy, balanced life.
Joe Costa and Marni Wolf
Park Place Financial Group
402 West Broadway, Suite 400
San Diego, CA 92101
619-990-7552
info@parkplacefg.com
info@parkplacefg.com