The Reverse Report

Reverse Mortgages Look Better - WSJ.com

Upfront fees on reverse mortgages have fallen substantially in recent months, giving homeowners interested in this product a new challenge: how to compare offers to find the best one.

"Quite a few of the lenders now have reduced the origination fees," says Barbara Stucki, vice president of home-equity initiatives for the National Council on Aging. "Some of them are getting rid of the origination fees. Some are willing to pay some of the mortgage-insurance premium fees upfront."

It's an important development for reverse mortgages, which have in the past faced criticism for charging high upfront costs, says Peter Bell, president of the National Reverse Mortgage Lenders Association.

via online.wsj.com

Yet another postive article on reverse mortgages. This article highlights the reduced fees that borrowers are finding in the marketplace. As I've continually mentioned on the radio program, expect to see more positive press on reverse mortgages during the coming months and years as these products have become extremely consumer-friendly.

In this episode I spoke extensively about retirement asset allocation and preserving the intrinsic value of your property while tapping into your equity.  Reverse mortgage borrowers generally have very strong feelings about the intrinsic value of their homes, however, they understand the benefits of tapping into their equity without affecting those things about their homes that they value the most.  Ultimately, reverse mortgages should be considered a tool for retirees to find the proper asset allocation for their retirement funds in order to develop a proper long-term retirement strategy.

 

Program 11 Audio

I covered reverse mortgage fundamentals in this episode.  If you're unfamilar with the benefits and costs of reverse mortgages or how they work, this program is a fanastic place to start to learn the reverse mortgage basics. 

 

Program 10 Audio

Program 9 - Financial Advisor Bimal Shah

This was a fantastic show with Bimal Shah.  Bimal is a well known financial educator in South Florida.  He is a lifetime member of who’s who in the world, a prominent mark of recognition and achievement.  He is a member of Top of the Table®, lifetime member of Million Dollar Round Table®, a premier organization of most successful financial advisors in the world, and has been honored with national industry awards like NQA, NSAA (National Quality Award and National Sales Achievement Award). During his many years as a member of this international organization, he has helped make a difference in the lives of more than 1000 families and businesses to preserve their assets, increase their income and reduce the taxes they pay. His creative strategies and ideas in Planning for Retirees helps guarantee lifetime income, guarantee principal protection, provide for cost-effective Long Term Care benefits, and leave behind a long lasting legacy. Mr. Shah is a Chartered Life Underwriter(CLU), a Chartered Financial Consultant (ChFC), and a Certified Advisor in Senior Living(CASL), proving his proficiency in retirement planning, estate planning, insurance, and investments.

If you're looking for information about Medicaid trusts or any other financial products, please give Bimal a call or visit his website at  www.BuildMyFinancialFuture.Com  866-975-2669 (1-866-9-Plan-My-Future).

Program 9 Audio

 

Can a reverse mortgage help you have a better retirement?

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Can a reverse mortgage help you have a better retirement?

By Kimberly Miller

Palm Beach Post Staff Writer

Updated: 9:17 p.m. Friday, June 18, 2010

Posted: 9:03 p.m. Friday, June 18, 2010

Three years ago, Loxahatchee resident James Gamble was preparing for retirement. His home was paid off, he wasn't married, and he has no children needing an inheritance.

So to finance his retirement - and a summer home in West Virginia - Gamble took out a reverse mortgage, getting about $200,000 out of a house he paid an estimated $85,000 for in 1994.

"I would get Social Security and I had enough to live on and pay my bills, but I couldn't have bought a house in West Virginia for sure," said Gamble, 65. "I didn't want to retire and just do nothing."

Reverse mortgages allow seniors to convert their home equity into cash. Instead of paying the bank each month, the senior gets paid, either in a lump sum, a line of credit or monthly payments. The loan is due, with interest, when the borrower dies, moves or sells the house. Because it is a non-recourse loan, the lender cannot seek repayment from any source other than the property.

via www.palmbeachpost.com

WOW! Finally a very even-handed local article on reverse mortgages. Times certainly are changing.

Del Webb 2010 Boomer Survey

Here's a link to the Del Webb 2010 Boomer Survey that we'll speak about on the program tomorrow.  Interestingly, only 25% of boomers expect to use their home equity to fund their retirement years.  It will be interesting to see if those attitudes change incoming years.

http://www.dwboomersurvey.com/2010_Baby_Boomer_Survey.pdf

Would a Reverse Mortgage Affect My Taxes? - Personal Finance - Taxes - SmartMoney.com

Would a Reverse Mortgage Affect My Taxes?

While real estate remains in the doldrums, many older individuals own homes that are still worth plenty. Some of these folks may be “house rich” but “cash poor.” Taking out a reverse mortgage could solve that problem, but what are the tax implications? Good question. Before answering, let’s cover the basics on how reverse mortgages work.

 

Reverse mortgages just got cheaper - Managing Your Money

 

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Reverse mortgages just got cheaper

E-mail|Link Posted by Cheryl Costa May 27, 2010 10:42 AM

As retirees enter retirement with account balances that aren't quite as high as they would like, more an more are considering reverse mortgages. Reverse mortgages are available to anyone over the age of 62 who owns their home outright or holds only a very small mortgage.

The majority of reverse mortgages are made through the Home Equity Conversion Mortgage (HECM) program and the amount that can be borrowed depends on the appraised value of the home, the interest rate in effect at the time and the age of the youngest homeowner. (Other things being equal, an older homeowner will be able to get a high monthly payout than a younger homeowner).

The maximum amount that can be received is $625,000. Money can be taken in three ways: as a lump sum, in installments or a "credit line" can be set up and money can be withdrawn as needed. With reverse mortgages, retirees can remain in their homes and they wont be forced out and there are no income or credit checks required.

via www.boston.com

Great article from my favorite newspaper regarding reverse mortgage fees. I think this is a pretty even-handed article.

Program 8 - Long-Term Care Insurance

Here's a copy of the audio from today's show.  Today we spoke with Leni Cohen at Advantage Agents Alliance about Long-Term Care insurance which is a fantastic complementary product to reverse mortgages.  If you'd like to know anything about long-term care insurance beyond what was discussed in today's program, please call Leni at (800) 243-2326 x1260.

Program 8 Audio

 

New Breed of Specialist Steps In for Family Doctor - NYTimes.com

PHILADELPHIA — By the time Djigui Keita left the hospital for home, his follow-up appointment had been scheduled. Emergency health insurance was arranged until he could apply for public assistance. He knew about changes in his medication — his doctor had found less expensive brands at local pharmacy chains. And Mr. Keita, 35, who had passed out from dehydration, was cautioned to carry spare water bottles in the taxi he drove for a living.

via www.nytimes.com