October 2012 Volume 1, Issue 1

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Nicholas Racanelli Regional Vice President 631-389-2250 NMLS # 243254 nracanelli@southforkfunding.com

Inside This Issue

New York Times Article Reverse 101 Multitasking doesnt work So you are too old to have a stroke 1

Recent New York Times Article

Given the most recent NY Times article regarding Reverse Mortgages A Risky Lifeline for the Elderly is Costing Some Their Homes I thought it opportune to discuss something we all know but sometimes easily forget, the importance of the mortgage broker as advisor.

Reverse 101
Reverse Mortgages are an FHA mortgage product. Loan requirements follow FHA guidelines. Funds can be taken in a lump sum or monthly installments. Reverse mortgage can be used for purchases. There is mandatory independent counseling for all borrowers about the obligations of a Reverse Mortgage with comparisons to other mortgage products Counseling is suggested for the spouses that may not be on loan regarding financial impact on them. The borrower must continue to pay applicable real estate taxes, homeowners insurance, and maintain the property as per FHA guidelines. The property must remain the borrowers primary residence. If these criteria are met the homeowner cannot lose their home. What happens when the property no longer becomes the primary residence? The borrower or the estate can pay off the mortgage by obtaining traditional financing. The borrower or estate can sell the property, and repay the loan. The borrower or estates retain the equity balance after repayment

With the challenges that we all face in the current economic climate, proper education and planning are even more critical to financial success. Managing the equity in ones home is no exception. Matching the proper mortgage product with a clients needs is paramount, and it is the mortgage advisors obligation to listen, and to understand the borrower fiscal requirements and more important abilities.

Adjustable Rate Mortgages (ARMs) are often blamed for our current housing crisis. Borrowers purchased homes only to default when their rates adjusted or the interest only period ended, leaving them with a payment that they never could possibly afford. That does not mean that ARMs are not a beneficial and powerful financing product when used correctly. For borrowers that intend on staying in their houses for a short period of time, or have the ability and discipline to pay down principal while taking advantage of the rate, ARMs are an effective and advantageous product. The same can be said for Reverse Mortgages. Are they for everyone? No. Can they be a very effective alternative for borrowers that want or need to access the equity in their houses? Yes? The key to success as in all things is proper planning and consulting of an educated and trusted advisor.

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Planning Partnership

Why Multi-Tasking Doesnt Work!

We live in a world where every day we are told that multitasking is necessary, that is the only way to get things done. That he or she that can multi-task the most amount of thing at one time is the one who will ultimate succeed. We are constantly bombarded by the concept. Products are produced and marketed to us to enhance and improve our ability to multitask. But here is a thought, what if they were all wrong?? Below is an excerpt from an article by Douglas Merrill that appeared in Forbes magazine. When youre trying to accomplish two dissimilar tasks, each one requiring some level of consideration and attention, multitasking falls apart. Your brain just cant take in and process two simultaneous, separate streams of information and encode them fully into short-term memory. When information doesnt make it into short-term memory, it cant be transferred into long-term memory for recall later. If you cant recall it, you cant use it. And, presumably, you are trying to learn something from whatever you are doing, right? Instead of actually helping you, multitasking works against you. Its making you less efficient, not more.

Reverse Tip: Many financial planners recommend obtaining life insurance to allow for repayment of the reverse mortgage allowing the estate to retain the property.

So you think you are too young for a Stroke? Think again!
Below is an excerpt from an article written by Jane E. Brody that appeared in the New York Times. Although a vast majority of strokes occur in people over age 65 (the risk is 30 to 50 per 1,000 in this age group), 10 percent to 15 percent affect people age 45 and younger (a risk of 1 in 1,000). A study by doctors at the Wayne State University- Detroit Medical Center Stroke Program found that among 57 young stroke victims, one in seven were given a misdiagnosis of vertigo, migraine, alcohol intoxication, seizure, inner ear disorder or other problems and sent home without proper treatment.

Patients, too, should be aware of the risk of stroke regardless of their age, Dr. Chaturvedi said in an interview. The Centers for Disease Control and Prevention have reported a steep increase in strokes among people in their 30s and 40s. A rise in risk factors obesity, diabetes, high blood pressure and sleep apnea and improved diagnosis account for this upturn. But younger patients are no better today at recognizing the symptoms of stroke. Only 20 to 30 percent of patients get to the emergency room within three hours of symptom onset, Dr. Chaturvedi said. They tend to wait to see if the symptoms will go away spontaneously, and they show up in the E.R. 12 to 24 hours later.

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Newsletter Title Planning Partnership

Quick Notes
Foreclosure rates are at their lowest since April of 2010 according to Core Logics National Foreclosure Report 5.2% of mortgaged homes in NY are still in some stage of foreclosure. South Fork Funding can help. There are options. FUN FACT - Average number of nails used to build a three-bedroom house: 40,790 FYI The real estate sector is often one of the first impacted by impending economic instability, making housing starts a highly reliable economic indicator. FUN FACT -Average amount of paint used in building a three-bedroom house: 50 gallons

Call me today so we can set up an appointment to meet and discuss my services in detail! Nicholas E. Racanelli. Regional Vice President NMLS # 243254 South Fork Funding Inc. Phone: 631-389-2250
nracanelli@southforkfunding.com To catch the readers

A caption is a sentence describing a picture or graphic.

attention, place an Quote of the Month interesting sentence or quote from the story here. An investment in

knowledge pays the best interest.

~Benjamin Franklin

Issue 1 - October 2012

NMLS #14731 LICENSED MORTGAGE BROKER - NEW YORK STATE DEPARTMENT OF FINANCIAL SERVICES/ALL LOANS ARRANGED THROUGH 3RD PARTY LENDERS