Sierra Reverse Mortgage

I am getting many questions about the fed raising rates and how that effects mortgage rates. Here is a great explanation of that.

Rob Chrisman writes a great daily article. I cut and pasted. He does a great job breaking it down.

How the Fed Impacts Mortgage Rates

"With the Fed decision today, I’m being asked how Fed moves impact mortgage rates. MCT offers an excellent primer that reminds us, “Many people believe the Federal Reserve, through the actions of the Federal Open Market Committee, has a direct impact on mortgage rates. It’s actually more so that speeches from Federal Reserve Committee members, announcements of what the Fed is doing, and its actions in the open market serve as useful predictors of future rate movement."

“Changes in the federal funds rate trigger a chain of events that affect other short-term interest rates, foreign exchange rates, long-term interest rates, the amount of money and credit, and a range of economic variables (e.g. employment, output, and the prices of goods and services). The fed funds rate affects short-term loans, such as credit card debt and adjustable-rate mortgages. Long-term rates for fixed-rate mortgages are generally not affected by changes in the federal funds rate but track the 10-year U.S. Treasury yield much more closely.”

Dennis C. Smith of Stratis Financial opines, “The Federal Reserve’s stated purpose is, “Conducting the nation’s monetary policy by influencing money and credit conditions in the economy in pursuit off full employment and stable prices. The Fed has several tools available to increase or decrease the amount of money in the economy. Full employment results in greater demand for goods and services, which puts upward pressure on prices, i.e. inflation. Less than full employment decreases overall purchasing power and ability. Lower demand leads to stable, or declining prices.

“Contrary to what many believe, the Federal Reserve only controls one interest rate, the federal funds rate (referred to often as the “benchmark rate”). This is the rate that banks lend money to each other, typically on an overnight basis. Mortgage rates are determined by investors who purchase mortgages as an investment. The mortgage market is generically known as MBS, or mortgage-backed-securities. Investors want to make a profit, their decisions to purchase or not purchase any investment is based upon their opinion as to what they think will happen in the future and if their investment will be worth more or less money. In the case of MBS, this includes what they feel interest rates will be, or should be, in the future. Part of their decision-making criteria is what they feel the Fed will do in regard to monetary policy, or what the Fed has announced it will do.”

I am seeing a lot more articles like this one coming out. Especially as inflation is starting to eat into retiree's finances.
Financial Advisors are really beginning to utilize reverse mortgages as a tool in the retirement portfolio.

For questions on how I can help, please call 800-361-9357.

Here's what you need to know about reverse mortgages With markets volatile and housing hot, reverse mortgages are attractive to retirees looking for cash while staying in their homes.

People are always looking for ways to help with finances during retirement. Here is another article from USA Today suggesting a reverse mortgage as a solution.
Even if your home isn’t paid off, a reverse mortgage can eliminate your mortgage payment. Think about it- with no more mortgage payment, you are now able to spend that money in other areas. $1500 no longer being paid to a mortgage company now allows you to spend $1500 in other areas like food, in home nursing, or vacations. That is a $3,000 swing in your monthly budget. That is huge!
For scenarios, please call Bryan Wild at 530-677-5484.

Making ends meet in retirement: 5 ways to bring in money, from reverse mortgages to your HSA If you're retired or your golden years are fast approaching, don't panic. Here are some unexpected sources you could turn to for retirement income.