The Southern Nevada Real Estate Show

Wesley Knight 0:00
This is a KU NV studios original program. You're listening to special programming brought to you by ragana Come and Henry of Coldwell, banker premiere Realty. The content of this program does not reflect the views or opinions of 91.5 jazz and Moore the University of Nevada, Las Vegas, or the Board of Regents of the Nevada System of Higher Education.

Regana Kooman Henry 0:20
You hello, Southern Nevada, and welcome to the Southern Nevada real estate Show. I'm your host, regana, and I'm with Coldwell Banker, Premier Realty, and I have a very, very special guest, a repeat guest, on our show. You know her. You love her. She gives you such insightful information regarded regarding everything that is a mortgages and different types of loans. And today, we're going to be diving in to reverse mortgages. So everyone again, welcome back to the show and welcome back.

Kirsi Mbacke 1:19
Kirsi, well, thank you, regana, thank you. And you know, I'm keer C friendly neighborhood lender, and I'm really excited today, regana, about today's conversation, because, you know, reverse mortgages are really one of the most misunderstood tools in real estate and retirement planning today,

Regana Kooman Henry 1:42
yes, I see that, and totally and you know, you hear myths all the time, like, for example, the bank will take your house. You can't leave it to your kids. Once you pass away, it's only for people in desperate situations, and most of that Jess isn't true. Am I correct?

Kirsi Mbacke 2:05
Kurc Exactly. So, you know, the reverse mortgage of today, it's not the reverse mortgage of, you know, 2030, years ago, you know, and when it's used strategically, it can be a really incredibly powerful tool, especially for home purchases and refinances,

Regana Kooman Henry 2:28
sure, sure. And you know so whether you're a homeowner listening this morning, a future buyer, or just someone who likes to understand your options, stick with us, and we're breaking it all down in plain English for everyone this morning, and my number is 70259612677025961267,

Regana Kooman Henry 2:54
if you'd like more information, and Kirsty later on, we'll give her phone number and her contact information out again. So, all right. Kirsty, so let's start at, you know, square one, when people hear reverse mortgage, what does it actually mean?

Kirsi Mbacke 3:12
Kirsty, well, I think when people hear reverse mortgage, they're they get scared, right? Yes. So, but at its core, a reverse mortgage. And specifically speaking, there's a couple different products, but we're going to talk about the heck so which, you know, that stands for Home Equity Conversion Mortgage, you know, and it's, it's a loan available to homeowners 62 and older. You have to be 62 and that allows them to access their home equity without making monthly principal and interest mortgage payments. Okay?

Regana Kooman Henry 3:51
And you know that part alone makes people sometimes say, What did you say? Right?

Kirsi Mbacke 4:00
I can own a home with no payment. What exactly? So instead of the borrower paying the lender every month, the loan balance grows over time. You know, the homeowner is going to still own the home. They're still going to stay on title, and, you know, they're still responsible for their property taxes and their homeowner's insurance and, you know, just maintenance on the house, just like any other mortgage.

Regana Kooman Henry 4:25
So what you're saying is the bank doesn't take the house.

Kirsi Mbacke 4:29
Nope, the homeowner keeps full ownership, and the loan only becomes due when the last borrower permanently leaves the home. So when we say leaves the home that you know it could be, they might be moving, they might need to sell, or, you know, in the unfortunate event that they pass away,

Regana Kooman Henry 4:50
that's such an important clarification. Kirsty, I feel like that myth alone scares people off before they even learn. And the facts sometimes, right, right, right? And, you know, let's talk, you know, let's get into it and talk about the refinance part of the reverse mortgage first, because I see this come up constantly with my older clients, and people are retiring with a traditional mortgage, and it's like stressing them out to be able to make ends meet, you know, with a mortgage and plus all the other, you know, common everyday expenses, right?

Kirsi Mbacke 5:32
And you know, things just keep getting more and more expensive. So, you know, this is really one of the biggest wins for reverse mortgages. You know, imagine somebody that's in their late 60s or 70s, they're living on Social Security, maybe they have a little pension, some investments, and yet they still have, you know, a 1500 2000 these days, 2500 $3,000 a month mortgage payment,

Regana Kooman Henry 5:59
sure, sure. And which feels backwards actually, when you're supposed to be enjoying your later years and enjoying your retirement,

Kirsi Mbacke 6:09
right, right? So you know what a reverse mortgage can do is it can pay off that existing mortgage, eliminate the monthly principal and interest payment and immediately free up some cash. Okay?

Regana Kooman Henry 6:26
And so instead of pulling from savings every month to make ends meet, you're saying they can actually let their money sit and grow.

Kirsi Mbacke 6:37
I like the sound of that we often talk about, you know, the sequence of return risks in retirement and pulling money out of investments during down market times. That can just be really devastating long term. And, you know, a reverse mortgage can give you options to pull it when you want to pull it, and not because you have to pull it

Regana Kooman Henry 7:00
right, right? Yeah. So this gives people, you know more, you know, like breathing room and and relief, you know, and you know, so they can sleep at night,

Kirsi Mbacke 7:11
right, big time, so, you know. Plus, depending on the equity and the age of the borrower, they might also have access to a line of credit that can grow over time as your you know, your property value increases, or you know, if there's enough equity there, they can they can opt to receive monthly funds to supplement the income that they have with their Social Security or or pension.

Regana Kooman Henry 7:38
Sure, and I love that it's flexible. You have a lot of flexibility, and it's not like a one size fits all kind of thing

Kirsi Mbacke 7:49
exactly, you know. And I think all that people really want is just peace of mind, you know. Some people maybe want to do renovations on their home. Some people want to travel. Some people want to help their grandchildren with college or, you know, just stop worrying every month how they're going to make ends meet.

Regana Kooman Henry 8:10
Sure, sure. And I want to pause on something you just said, you know, like peace of mind, because the emotional side of this is, like, huge, right?

Kirsi Mbacke 8:22
100% Regan, 100% you know, I've had clients cry and and they cry not because they're in trouble, it's because they're they're relieved that they have another option.

Regana Kooman Henry 8:34
Sure and Same, same. Here, I've worked with homeowners who feel very trapped by their monthly mortgage payments. And they love their home, their neighborhood, their community, but the mortgage is like hanging over them

Kirsi Mbacke 8:50
once that payments gone, you know, they can actually feel like they can breathe again. You know, retirement becomes what it was meant to be, and not just surviving, but actually living.

Regana Kooman Henry 9:03
Sure And okay, so let's switch gears for man accuracy, because this is my favorite part for being a for being a realtor, the reverse mortgage for purchase, for purchase, not just the refund, but the purchase. This one really blows people's minds. Blows my mind too, right?

Kirsi Mbacke 9:24
Because you're thinking, How do I buy a house with and not have a payment, right? Right? It's kind of crazy, you know? So it blows my mind a little bit, honestly, too. But really it's, it's really a powerful tool for buyers out there that are, you know, 62 plus seasoned years old. Yes, we like to say not old. We like to say season Exactly.

Regana Kooman Henry 9:49
So explain how this works. Kirsty,

Kirsi Mbacke 9:52
so with the reverse purchase, your buyer is going to put down a large down payment, usually between 40 and 60 per. Cent just and that number is really going to depend on the age at the time they're doing it, and what interest rates are at, and then the reverse mortgage covers, covers the rest.

Regana Kooman Henry 10:12
So what's the kicker? Kirsi, the

Kirsi Mbacke 10:16
kicker is no monthly mortgage payment principal and interest ever,

Regana Kooman Henry 10:23
like, never, ever, never, ever, especially in markets where prices are high or have gotten higher and interest rates feel intimidating. Exactly.

Kirsi Mbacke 10:38
So instead of taking, you know, all cash to pay for a home. You know, we have a clients that move and they might have sold a long time home, and they have a lot of cash, sure they want to put it all down. You know, they don't really want to take on a new mortgage payment. You know, this allows them to preserve some liquidity and still own the home outright, you know, subject to that reverse mortgage. Okay?

Regana Kooman Henry 11:07
And I see this a lot with people downsizing, they sell, like a large family home, buy something that fits their lifestyle better and don't want another payment. So the reverse mortgage for purchase sounds, you know, perfect,

Kirsi Mbacke 11:24
right, right, you know. And sometimes they're just relocating to be closer to grandkids, or, you know, it could be buying their forever home with accessibility in mind, you know, going from a two story to a one story,

Regana Kooman Henry 11:38
right, right? And those California people, if they are fortunate enough to sell their homes, which are a bit on average, more expensive than here in Southern Nevada, they can take the profit from that home and do a reverse mortgage on a really nice home here and not have a monthly payment. I know. Ooh, that would be so nice right right now from a real estate strategy standpoint, this is such a smart move. Totally Regatta, yes, and you don't have a monthly payment, which means your debt to income ratio doesn't matter, the same way it does with, you know, traditional loans, correct?

Kirsi Mbacke 12:18
Yeah, correct. So you know, when there's no debt to income requirements, and really no income qualification, like you would have on a conventional or or FHA loan,

Regana Kooman Henry 12:31
sure, sure. And which opens doors for more people who are, you know, have money. They're asset rich, they have the down payment, but they don't have that income to to make that type of payment comfortably every month Exactly.

Kirsi Mbacke 12:46
And for competitive markets, you know this, buyers can often make stronger offers because they're not really relying on a traditional loan approval timeline. You know they're pretty quick to close,

Regana Kooman Henry 13:01
sure, sure. And it's really a game changer. And so few people even knows about this type of mortgage that it even exists. And right? And you know, let's, let's now tackle the elephant in the room that we've been avoiding, talking about, what happens, you know, to the house later, like they pass away or gets inherited. What happens, right?

Kirsi Mbacke 13:29
I think that's probably the biggest question that everybody has, right? Yes, it sounds great, but then what happens to the house? Right? Right? So, great question. So when the homeowner passes away, or they move out. You know, they're heirs that they leave the house to. They have options. You know, they can still sell the home, they can refinance it, or, you know, pay off the loan and just keep it

Regana Kooman Henry 13:55
okay, and they're never responsible for more than the home is worth Correct, right?

Kirsi Mbacke 14:03
So reverse mortgages, and they didn't used to be this way, which I think is why they got a bad rep. But reverse mortgages are not what we call non recourse loans, so they're insured by FHA, and that protection the borrower isn't going to or, I mean, the heirs aren't going to. If the house is worth less than what's owed on it, then you know, they don't take on that liability. The bank just takes over.

Regana Kooman Henry 14:33
Okay? And another big fear I hear about is my kids won't like me purchasing a home through this type of mortgage. What do you what do you say to that, Kristie,

Kirsi Mbacke 14:48
I say, Are your kids paying your bills?

Speaker 2 14:50
That's exactly what I was saying. To be honest with

Kirsi Mbacke 14:54
you, teasing maybe, maybe a little bit. But so you know, and that's why. I always encourage, you know, family conversations, so when their kids are a little nervous about it, you know, I'm always happy to sit down with whoever wants to talk about it, you know, and and help the kids understand that this is a tool that's going to help their mom and dad live a better life, a more comfortable life, and preserve, you know, the assets that they do have. And then when you have those conversations and they can understand that, then you know, they usually get it,

Regana Kooman Henry 15:31
sure, sure. And so who should at least explore the option of a purchase reverse mortgage or a refi reverse mortgage? Yeah.

Kirsi Mbacke 15:43
So it's definitely not for everybody. You have to be at least 62 or older, and you've got to have, you know, the value, cash flow, flexibility, long term planning, you know. And it's really for those who just want to reduce their monthly expenses and, you know, or preserve their investments, sure.

Regana Kooman Henry 16:07
And I'll add people who want to stay in control of their lifestyle choices, I think is a good fit for this.

Kirsi Mbacke 16:15
Yes, yes. You know it. It's not about last resorts this loan. It's about options,

Regana Kooman Henry 16:21
sure, sure. And again, my number is 702-596-1267 that's 702-596-1267 if you'd like more information, or you know, put to put you in touch with Keirsey, the loan depot mortgage company. So if there's one takeaway from today, it's this, reverse mortgages are not scary. They're actually very strategic and a very smart move for for people that can use this and benefit from this.

Kirsi Mbacke 16:56
Yeah, absolutely. And like I said, you know, it's not for everyone, but it's definitely worth having a conversation to see if it's right for you

Regana Kooman Henry 17:05
sure, and as a realtor and a real estate professional in general, I love having this tool in my back pocket to help clients like some of the listeners out there this morning that may be considering This to buy smarter, or what I would say, age in place comfortably, financially, yes, yeah.

Kirsi Mbacke 17:29
And as a lender, I love helping people just kind of reframe their retirement around around that freedom, instead of around fear.

Regana Kooman Henry 17:39
Sure, sure exactly. And if you're curious, ask questions, get educated. No pressure, right? No pressure, just options, right, exactly. So Kirsty, I'd like for you to say your all your contact information now, trice, and then at the end of the show, we'll bring you back. And also, I'm going to do the stats for the month of January, last month. So you know, if what I'd like for you to do is give some real life examples too, when I'm done with the real estate stats for Southern Nevada, is that okay?

Kirsi Mbacke 18:11
Kirsty, Oh, absolutely. Those are my favorites. Okay. All right.

Regana Kooman Henry 18:15
So Kirsty, please give your information now and again, like I said at the end of the show.

Kirsi Mbacke 18:19
All right. Thank you. Regana, so I am Kirsty and bake with the loan depot. My NMLS number is 1398336, you can reach me at 702-381-1975,

Kirsi Mbacke 18:35
again, Kirstie and Bakke, loan depot, 702-381-1975,

Regana Kooman Henry 18:42
thank you so much, Kersee. We'll hear back from you in just a moment. And now let's get into the real estate stats for January, for Southern Nevada. Now there are for sale for single these are only for single family homes, and then I'm going to switch it up for condos and townhouses. So here goes. There were 1445 homes that sold, and $470,000 was the median price of single family homes sold. There were 3149 new single family home listings. $519,950 was the median price of all new listings for January and $544,925 was the median price of all available single family home listings, both new and not new on the market, excluding offers and 41.8% of all single family homes went from available to under contract with the buyer in 30 days or less. Now I'm going to switch to condos and townhouses combined. There were 380 condos and town. Homes combined that sold in January, $283,750 was the median price of all condos and townhomes combined. Sold in January there were 1012 new condos and townhome listings combined. $287,000 is the median price of all new available condos and townhome listings combined. And $275,999 is the price of all available condos and townhomes combined, both new and not new on the market, excluding offers. And 36.6% of all condos and townhomes combined went from available to under contract with the buyer in 30 days or less. So there you go with all the stats necessary stats for January, last month. So Keirsey, bringing you back. Can you share with us some stories for you know, reverse mortgage refi or purchases?

Kirsi Mbacke 21:03
Yeah, absolutely. So one of the ones that really comes to the top of my mind is I had a lady call me. She was a widower. Her husband had died, you know, within the last within the last year, and he had been completely taking care of their finances. So she wasn't really aware that there was a second mortgage that had come due on the home, and so the payments on that weren't getting made, and they were going to foreclose on her house, and she only owed maybe 8000 on the first and maybe 20,000 on the second so over $28,000 she was going to lose, you know, this home that she had made with her husband, and she just lost her husband, so we were able to go in, we were able to pay off the first and the second, and we actually paid off all of her other debts that she had and so that she was just in a better financial place, and, you know, could breathe a little bit easier. So, you know, those kind of stories just really stick, stick with me. And a second one, I'll tell you, I just closed this one, these, this little, cute little couple, you know, they're getting up there in age, and they, you know, their their health is probably not, you know, the best, sure. And you know, they've been in the home since the 80s, right? Wow. But the payments just too much for them, because they're on fixed income, so we were able to get them into a reverse mortgage. And, you know, free up a good amount of change so that they can live comfortable. And, you know, they were so happy at the smile on their faces just makes it all worth it. Wow.

Regana Kooman Henry 22:53
So, you know, it's a lot when someone's on a fixed income. That is great. Great. Do you have any other stores you'd like to share?

Kirsi Mbacke 22:59
You know, those are, those were both kind of refi scenarios, but let's do like a purchase scenario. So I had a client that moved from California, and, you know, they'd sold their house, and so they had a good amount of of money to put down, sure, but it really wasn't enough to purchase in the, you know, the retirement community that they wanted to live in, but they couldn't really afford to have, you know, a big payment. So what we were able to do was take a portion of that money, you know, from their sale, and we did a purchase so they didn't have a principal and interest payment, and they were able to get into the retirement community that you know, that they wouldn't have been able to purchase otherwise.

Regana Kooman Henry 23:47
And I know you could tell probably many, many stories of similar situations with reverse mortgages for purchase for refi, you know, it's really a lifesaver, wouldn't you say for many, many people, oh yes, yes, absolutely that wouldn't be able to stay in their home if they didn't have this opportunity to eliminate, you know, their their mortgage payments, like all together. So this is very it's like a blessing in disguise. So again, if anyone would like to have more information, my number is 702-596-1267, that 702-596-1267. And Keirsey. Can you name maybe another one, another story that you could share with the audience this morning that maybe, if they're still a little bit on the fence, that can get them to maybe not feel so uncomfortable about it. And kind of break it down how it helped someone. Let's talk the reverse mortgage for purchase again, because this one is gold. This example. Give us this example for that.

Kirsi Mbacke 25:03
Oh, yes, yes, I remember that was one of my favorite clients. You know, they were a couple that were ever all my clients are my favorite clients. They were really relocating to be closer to their

Regana Kooman Henry 25:17
grandkids, sure. Oh, I remember this one, yeah, yeah.

Kirsi Mbacke 25:21
So they sold their longtime family home, which, you know, sometimes that's a little sad for people, but you know, they had about 500,000 in cash from that sale, and they found a new home for around 450

Regana Kooman Henry 25:36
Oh, wow. Most people would just pay cash and call it a day, exactly.

Kirsi Mbacke 25:42
But, you know, the these borrowers were savvy, and instead, they used about 55% of their money that they made on the sale, and used that for a down payment with the reverse mortgage purchase, and then they kept the rest invested.

Regana Kooman Henry 25:59
Oh, okay, and no mortgage payment, right?

Kirsi Mbacke 26:03
No principal interest payments, right? None. And, you know, they they loved knowing that they had, you know, some liquidity for travel, for health care if they need it. And, you know, just enjoying life and they can spoil those grandkids, right?

Regana Kooman Henry 26:22
That's, that's really awesome. And that's such a mindset shift, using cash strategically instead of, you know, emotionally, and Keirsey, you've been such a wealth of information this morning. And I really, and I know the audience has gotten, you know, there's people in the audience that's gotten some really helpful information, and you'll probably see your phone ringing, because I know there's somebody that is probably qualifies and can use this program. So Keirsey, please give, go ahead and give the audience your your your name, your company name, and your phone number again, try so that they can get a hold of you.

Kirsi Mbacke 27:03
All right, absolutely. And you know, thank you for having me on the show again. Regana, always, always a pleasure.

Regana Kooman Henry 27:10
Oh yes, it's always a pleasure. And you guys, you know I don't have to worry when I give Kirsty a buyer client to get qualified. She doesn't take no for an answer from the underwriter. She will find a way for you,

Kirsi Mbacke 27:23
right for sure. Thank you, Regatta. So I am Kirstie and Bakke with loan depot, and you can reach me at 702-381-1975 again, Kirsten Baki, loan depot, 702-381-1975, oh, 2381, 1975 and my NMLS number is 1398336,

Regana Kooman Henry 27:47
and thank you so much. Kirsty and I am ragana, cumin Henry with Coldwell Banker premiere Realty, your host for the Southern Nevada real estate show that airs every third Sunday of the month at 8:30am and my number is 702-596-1267 that's 702-596-1267 and my license number is BS, 27880, and as always, thank You so much for listening to my show this morning, and I wish Everyone listening a great Sunday And a great Week. You. You

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