INTEREST RATES ARE COMING DOWN

Notice that I didn’t say they might come down or they will come down. I said: they are coming down. How do I know? Well, it’s not really a question of knowing. It’s a question of needing.

We have owned our home for 46 years. When we bought it, it needed an enormous amount of work. I barely had enough money to buy the house, but we saved a little, hired a contractor, and started removing the stucco.  Then we discovered that underneath everything was rotten.

What began as a small project turned into practically rebuilding the house. The contractor worked on it for almost two years. If I had known from the beginning how much it would cost, I probably never would have started. But I did something important: I moved forward and figured out how to pay for it. I was earning money by closing mortgage loans, and as I earned, I paid the contractor. I didn’t wait until I had all the money before starting something that desperately needed to be done.

I thought about that today when one of the boards on our deck was lifted and we discovered that everything underneath was rotten. Next to it was a trellis and wooden stairs. Suddenly, another significant project needed immediate attention. My wife immediately said, “Why don’t you use a line of credit?” I thought about it. But I also know that I need to earn the money to make it happen. And that brings me to what I do.

There are two major types of mortgages I work with: conventional mortgages, primarily purchases and refinances, and reverse mortgages. With interest rates where they are today, conventional refinancing has slowed considerably.

But reverse mortgages are helping people do things they desperately need to do. Right now, I’m working with three very different clients. One needs a reverse mortgage to help settle an estate. Another was my client years ago. Since recently, she has been struggling with a serious malady, and her daughter doesn’t have the money to continue making the mortgage payments. And another client had an excellent first mortgage with me years ago. Now he wants to do major remodeling, and I was able to secure a reverse mortgage second to provide the funds he needs.

I’m not telling you this because I’m asking you to give me business. I’m asking you to think about the people in your life. A friend. A relative. Someone you know who has significant equity in their home but needs money for something important—remodeling, helping family, paying expenses, settling an estate, or simply making life a little more comfortable. Perhaps you can help connect them with me. And maybe, just maybe, that connection will give me what I need to rebuild my deck.

So, thank you in advance.

Manny Kagan,
Your professional mortgage broker since 1983
(415) 225-7920; mannykagan@comcast.net

 

CHOOSE LIGHT

Have you ever heard the expression, “The way you start your day is the way your day will stay”? I’ve also heard another version: “The way you start your day is the way you live your life.” I first heard those words many years ago, and ever since, I have tried to practice them every single day.

I’ve shared with you before that I created my book Reflections with one person in mind—myself. Then I realized it could help others as well. My hope is that it will inspire you to begin each day with a few moments of meditation.

If you’ve heard me say this before, let me repeat it, because I believe it is that important. Before the demands of the day begin, take a few minutes to calm your mind. When you begin your day in a peaceful and relaxed state, you are much more likely to enjoy whatever the day brings.

This is my daily practice:

Each morning, I open Reflections to the next page. I spend a moment looking at one of the photographs— a beautiful rose. As I look at it, I quietly say to myself, “Life is beautiful.” I begin the day with a sense of beauty and gratitude.

Then I read a short passage from the Torah, followed by my own reflection. After that, I sit comfortably, close my eyes, breathe slowly and rhythmically, and repeat a simple mantra. Five minutes later, I open my eyes, look at the clock, and know it’s time to begin my day. Just five minutes. That’s all it takes.

Today was a special day because I completed all 52 reflections in the book and started again from the beginning. The very first reflection I called Light.

“God said, ‘Let there be light,’ and there was light. God saw that the light was good, and God separated the light from the darkness.” — Genesis 1:3–4

My reflection on this passage is simple:

God created both light and darkness, but He gave us the freedom to choose which one we follow. Choose light.

Meditation is a habit. Like any habit, it becomes more powerful with practice. If you begin with just five minutes each morning, you may be surprised by how much it changes your life. You don’t need my book to meditate—but I truly believe it can help. Looking at beautiful images of roses that remind us of the beauty of creation, while reflecting on meaningful thoughts, can bring peace and healing to your day.

If you’d like a companion for your morning meditation, visit Amazon, type Manny Kagan, and you’ll find Reflections. And while you’re there, I’d also be honored if you looked at my newest book, Aging Well Isn’t an Accident. 42 realizations I discovered along the way.

I’m wishing you health, peace, and joy. Choose light.

Thank you.

THIRTY YEARS OF TRUST

On Monday, my wife Elfa and I had lunch with clients who have long since become our friends.

We have known them for more than 30 years. Looking back over those years reminded me that, as a mortgage broker, I don’t just finance homes—I often become part of my clients’ life stories.

It all began with the purchase of their first home in Berkeley. A few years later, I helped them finance a two-unit property, with commercial office in Oakland. Later came additional rental properties in Oakland. For several years, life was relatively quiet, until they decided to purchase an office building in San Francisco, which I also had the privilege of financing.

Recently, they called me because the commercial loan on the building was coming due. Rather than simply refinancing that loan, I proposed a different strategy. We refinanced another property, used the proceeds to pay off the commercial loan, and created a solution that made much better financial sense.

Only a month later, life brought another unexpected challenge. My client’s mother passed away. He and his brother inherited her home in Sacramento. Brother wanted to keep the house for his daughter, so once again I was able to help by arranging a cash-out loan that made it possible.

When we were deciding where to have lunch, I suggested Original Joe’s in Daly City. My client said, “My cousin is the manager there. ” Thanks to that family connection, we were treated to a complimentary dessert—the perfect ending to an excellent meal.

But the sweetest part came the next day when I received this text message from my clients:  “Thank you again, Manny and Elfa, for a very fun and delicious lunch, and for your friendship and mentorship over the years- you’re the Best!”

I included photos of our luncheon experience. Just for you to know which desert to order when you are going to have the meal at Original Joe’s

If you have questions about buying, refinancing, reverse mortgages, or using your home equity wisely, I’d be happy to help.

Manny Kagan,
Your professional mortgage broker since 1983
(415) 225-7920; mannykagan@comcast.net

THE SMALL JOYS OF LIFE

In my new book, Aging Well Isn’t an Accident: 42 Realizations I Discovered Along the Way, one of the chapters is titled “If You Want to Have a Best Friend, Become One.” Of course, I am referring to our Australian Labradoodle, Max.

One of Max’s greatest gifts to us is that he insists we go for a walk. That may sound obvious, but as we age, walking isn’t just something we should do—it becomes something we need to do. Fresh air, movement, and time outdoors are among the simplest ways to stay healthy, both physically and emotionally.

My wife and I take Max on evening walks, often choosing different destinations. Last Tuesday, it was already close to seven o’clock, and we knew darkness would arrive soon. Instead of taking our usual walk around the neighborhood, Max led us to the Pacific Ocean, about a 20-minute drive from our home.

Normally, when we get there, we walk along the paved path along the Great Highway. But this time, as soon as we reached the entrance to the beach, Max had a different idea. Without hesitation, he turned toward the sand and started running. We smiled and followed him. It turned out to be the best decision of the evening.

The sun was slowly setting. Waves rolled onto the shore. People were scattered along the beach, quietly enjoying the end of another day. Everything felt peaceful, calm, and wonderfully relaxing. Sometimes the greatest pleasures in life are the simplest ones.

So, here’s my recommendation: if your lifestyle allows it, get yourself a dog. Cats are wonderful companions too, but they rarely insist that you go outside for a walk. A dog will encourage you to move, breathe fresh air, explore new places, and appreciate the small joys that make life richer.

And if you’d like to discover 42 more realizations about living a longer, happier, and more meaningful life, I invite you to read my new book, Aging Well Isn’t an Accident: 42 Realizations I Discovered Along the Way, available on Amazon.

Enjoy the small joys of life. They often become the biggest blessings.

The three images are adding to the story.

Enjoy and share it with the friends.

Aging Well Isn’t an Accident —
And Retirement Shouldn’t Be Either

After publishing my book Aging Well Isn’t an Accident: 42 Realizations I Discovered Along the Way, which is now available on Amazon, I decided to continue exploring an important question that affects millions of homeowners: What are the seven questions every homeowner should answer before using home equity in retirement?

Many people spend years preparing financially for retirement, but they often don’t ask the most important question: “What will happen the day after I retire?” I believe we do not retire from something — we retire into something. The first question we need to answer is: “What do I want my retirement to look like?”

Do I want to:

• Stay comfortably in my own home?
• Travel and experience new adventures?
• Help children or family members?
• Right-size my home and simplify my life?
• Reduce financial stress and create more flexibility?

For many homeowners, the answer may already be part of their own home — the equity they have accumulated through years of hard work, mortgage payments, and property appreciation. For those who have significant home equity but limited savings or retirement income, their home can become a valuable financial resource. There are strategies and guidelines that determine how this equity can be used wisely.

In my book, Retirement Solutions for Smart People, which is available on Amazon I explain these options in detail and how homeowners can make informed decisions about their future.

If you have questions or concerns about retirement, home equity, or creating a more comfortable future, I invite you to reach out.

Manny Kagan,
Your professional mortgage broker since 1983
(415) 225-7920; mannykagan@comcast.net

 

HOW TO CELEBRATE YOUR NINTH BIRTHDAY?

How do you celebrate your ninth birthday if you’re an Australian Labradoodle named Max? First, you are taken to the groomer. You get a bath, a haircut, your nails are trimmed, and you come home smelling absolutely wonderful. Then comes the birthday present—a brand-new soft toy. Of course, every dog owner knows what happens next. Within an hour, the toy has been lovingly destroyed, with stuffing scattered around the house. Apparently, that’s part of the celebration.

People often say that one year of a dog’s life is equal to seven human years. If that’s true, Max is now about 63 years old. I don’t know about you, but I remember being 63. I was still full of energy. Still, even then, I had begun to slow down just a little, so I’m not surprised that Max no longer sprints after his ball the way he once did. He still wants to chase it—just at a more comfortable pace.

Max has become a wonderful companion. After work, we always go for a walk together. On weekends, we enjoy long walks in the park, and now that the evenings stay light longer, we often drive to the park after work for an extra outing. Three days a week, Max spends the day with his dog sitter, where he happily plays with his canine friends. Twice a week, he comes with me to the office, where he greets everyone as if they were lifelong friends.

It is hard to imagine our lives without him. He is a loving soul. He greets us with a wagging tail, licks my face whenever he gets the chance, and looks at me with eyes that seem to say, “I love you.” And every time, I answer, “I love you too.”

Happy 9th Birthday, Max. Thank you for making our lives richer, happier, and filled with unconditional love.

Three images are showing Max growing up.

Enjoy and share with your friends!

When Income Says “No,”
Home Equity May Say “Yes”

How do you solve life’s financial challenges when you don’t have enough income to qualify for a conventional loan?

Last week, I received a call from a client who had finally obtained permits to remodel his large home. He already had a home equity line of credit with his bank and asked them to increase it. Unfortunately, the bank declined his request because he couldn’t qualify based on his income.

The solution was surprisingly simple: a Reverse Mortgage Second.

Because of his age and the value of his home, I was able to arrange approximately $600,000—enough to complete the remodeling project without requiring monthly mortgage payments.

Then, this week, another former client called. He is going through a divorce and needed to pay his wife half a million as part of the property settlement. Again, qualifying for a conventional loan wasn’t possible. Once again, the answer was a Reverse Mortgage Second. We were able to secure $496,000, giving him  funds he needed while allowing him to keep his home.

These are just two examples of how home equity can become a powerful financial resource when traditional financing isn’t available.

If you—or someone you know—is over the qualifying age, owns substantial equity in a home, and needs funds but cannot qualify for a conventional mortgage because of income limitations, don’t assume there are no options.

Sometimes the answer isn’t earning more income—it’s making your home equity work for you. Give me a call. There may be a solution you haven’t considered.

Manny Kagan,
Your professional mortgage broker since 1983
(415) 225-7920; mannykagan@comcast.net

 

I’m Glad I Can’t Jog Anymore

I’m writing this from The Sea Ranch on the Sonoma Coast, about a three-hour drive from San Francisco. We came here on Thursday and left on Sunday. We have been coming here again and again for many years because every visit leaves us with unforgettable memories.

There are miles and miles of trails along the cliffs overlooking the Pacific Ocean. You can also walk down to the sandy beaches below, where the waves seem to wash away every worry.

Early this morning, Max and I were walking one of our favorite trails. Several men and women jogged past us. They were sweating, breathing hard, and focused on the path ahead. I thought to myself that jogging is certainly excellent exercise, especially in the fresh ocean air.

But then I realized something: I’m actually glad that I can’t jog anymore, because problems with my knees.

When I walk, I notice everything around me. I see the endless ocean stretching to the horizon. I admire the twisted cypress trees shaped by the coastal winds. I watch rabbits dart through the grass and deer quietly grazing nearby. I breathe in the fragrance of the sea mixed with wild grasses, and with every step I feel my spirit lifted.

Years ago, when I used to jog, the most enjoyable part was often the hot shower after I got home.

Today, Max and I walked for an hour. He happily ran along the beach while I slowly explored the beauty around me. When we returned to our rental home, I still enjoyed that refreshing shower—but the walk itself had become the greatest reward.

One of my favorite sayings is: “To serve — run. To live — walk slowly.”

As we advance in life, I believe we are meant to become wiser, not simply faster. Aging gives us the opportunity to exchange speed for awareness, rushing for gratitude, and movement for presence.

That is one of the 42 realizations I share in my new book, Aging Well Isn’t an Accident: 42 Realizations I Discovered Along the Way, which will soon be available on Amazon.

If this message resonates with you, you may also enjoy my companion book, 42 Petals of Wisdom, where my flower photographs are paired with reflections and observations gathered throughout my life. This book is now available on Amazon.

Three of the images above, along with the short reel available for download by clicking this link, were captured during the walk.

Have a wonderful life.

Walk slowly.

Notice the beauty around you.

A REVERSE MORTGAGE SAVED A FAMILY FROM LOSING THEIR HOME

In my book Retirement Solutions for Smart People, I describe many situations in which a reverse mortgage helped people who could not qualify for a conventional loan because of limited income or other financial circumstances. In every one of those cases, the goal was the same: to help people enjoy a more secure retirement.

Recently, I encountered a very different situation. The client was someone I had helped twice before, in 2001 and again in 2007. At that time, despite her limited income, I was able to find financing that met her needs. Today, her circumstances have changed dramatically. She is suffering from a serious disease and can no longer care for herself.

A few weeks ago, I received a call from her daughter, whom I had known for many years. She explained that her mother had two existing mortgages and that the payments had fallen behind. The home was already in pre-foreclosure. The situation was heartbreaking.

The house had accumulated substantial equity over the years. Four family members, including the mother, were living there. Selling the home was not the daughter’s first choice because she understood that, after her mother’s passing, the property would receive a step-up in tax basis, potentially eliminating a large capital gains tax. What the family needed most was time.

Unfortunately, there were many obstacles.

The mortgages were in the mother’s name. Because of not making mortgage payments, her credit score was only 570 and her income was  just $900 a month from Social Security.  Under conventional lending guidelines, there was virtually no chance of obtaining a new loan.

Fortunately, there was another solution.

Because the mother was over 62 and owned a home with significant equity, she qualified for a reverse mortgage. The reverse mortgage would pay off both existing mortgages, covered the delinquent payments that had placed the home in foreclosure, and provided an additional line of credit for future needs. Most importantly, it would eliminate the monthly mortgage payments giving the family the breathing room they desperately needed.

Even after more than four decades in the mortgage business, this case reminded me that every family’s circumstances are unique. Sometimes the solution is not obvious, but it does exist. Many homeowners believe they have run out of options simply because their income is too low or their financial situation appears impossible. If they have built equity in their home, there may be a solution they have never considered.

That is why I always encourage people not to wait until the last moment.

If you or someone you know is struggling with mortgage payments but has substantial equity in a home or condominium, give me a call. Together, we can determine whether a reverse mortgage—or another financing strategy—can provide the financial relief you need.

You may be surprised to discover that there is still a way forward.

Meanwhile please order on Amazon one of my books I wrote on the subject — Retirement Solutions for Smart People, which is also available on Kindle. And while you are there, you can also buy Reflection. The Healing Images.

I am grateful in advance.

Manny Kagan,
Your professional mortgage broker since 1983
(415) 225-7920; mannykagan@comcast.net

 

MASHA’S GARDEN

It was Sunday morning. I looked out the window and saw a beautiful blue sky. It looked like it was going to be a warm day in San Francisco.

Still in my pajamas, I walked out into our garden. When we bought our house in 1984, the backyard was just a barren hill with a cracked retaining wall and a small set of stairs leading down. It took us years to transform it.

One day, my wife’s mother, Mama Masha, who was living with us at the time, came home carrying a bundle wrapped in newspaper. While waiting for a bus, she had noticed it hidden in a bush. She picked it up and brought it home. When we opened it, we counted exactly $1,000.

At that time, we had many financial needs, but she said, “I want you to use this money to create your garden.”

Many years—and many thousands of dollars later—we now have a beautiful garden filled with mature trees bushes and flowers. Some we planted ourselves, while others seemed to appear on their own, as if they knew this was the right place for them to grow.

We all have choices about how we want to live and how we decorate our lives. For me, flowers are the essence of beauty. That’s why this afternoon I plan to visit a nursery and buy more summer flowers for our garden.

When we surround ourselves with beauty, our lives become more beautiful.

This is also why every morning and every evening I open my book, Reflections, and spend a few quiet moments looking at photographs of flowers. Their beauty fills my heart. It is how I begin each day and how I end it before going to sleep.

I encourage you to do the same.

You can find Reflections on Amazon. And if you ever want to experience extraordinary beauty in person, visit the San Francisco Botanical Garden. You will be amazed by its collection of flowers from around the world.

Until then, enjoy your life, surround yourself with beauty, and share it with your friends.

Three images accompanying this story come from Mama Masha’s garden.