The pressure of debt repayment lies heavily on Americans in midlife and later. Surprisingly, it's not consumer debt. What's squeezing the budget as families enter retirement today is primarily mortgage debt.
Payments on home loans chewed up 7 percent of income on average in 2013 for people 55 and older, the Employee Benefit Research Institute (EBRI) reports. That's up 35 percent since 1992, when the boomers' grandparents retired. Back then, only 24 percent of this age group still carried mortgages, EBRI's Craig Copeland says. Today 39 percent do, and in much higher amounts.
Having a high level of mortgage debt, relative to the size of your income, gets especially risky when your paycheck stops and you have to make monthly payments out of the money you've saved. That's why so many preretirees try to pay off their mortgages in advance. How easy that is to do depends not only on the size of your income but also on the type of loan you have.
Prepaying a fixed-rate mortgage is pretty simple. All you have to do is add enough extra money to each monthly payment to wipe out the loan by the year that you want to retire. As an example, say that you took a $300,000 loan for 30 years at a fixed interest rate of 4 percent. The loan has 20 more years to run. If you want to retire mortgage free 13 years from now, you can do it by paying an extra $500 a month. To test various prepayment schedules, use AARP's mortgage payoff calculator or ones at mtgprofessor.com or bankrate.com.
When your mortgage carries an adjustable interest rate, however, your prepayments have to be adjusted, too, says Jack Guttentag, founder of mtgprofessor.com. A fixed amount, such as $500 a month, will reduce the size of your loan. But every time the interest rate changes, the lender will stretch out your remaining payments over the loan's original, 30-year term. Your monthly payments will go down but you'll still be in debt when you retire. To burn the mortgage earlier, you will have to increase your prepayments after every rate adjustment. Pay the $500 you planned on plus enough to make up for the amount by which your scheduled mortgage payments dropped.
see more at: http://www.aarp.org/money/credit-loans-debt/info-2015/prepay-mortgage-for-retirement.html
Tuesday, March 31, 2015
Friday, March 27, 2015
Serena to fight through knee pain at Miami
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MIAMI: World No. 1 Serena Williams is prepared to fight through pain to get onto the court Friday and begin defending her title at the ATP and WTA Miami Open.
The 19-time Grand Slam singles champion, forced out before her Indian Wells semifinal last week against eventual champion Simona Halep, said Wednesday that she expects to “manage pain” when she opens in the second round against Romanian Monica Niculescu.
“I’m just managing where I am right now,” Williams said. “Just trying to stay out of as much pain as possible and see what happens. I know I’m going to have to manage the pain.
“I think if I’m in that mental state, OK, you might be in a little pain. You just have to figure out the best way around it.”
The Niculescu match is a repeat of the second round a fortnight ago in Indian Wells, which Williams won in two difficult sets, and will probably bring her big pain test.
“I don’t want to put too much pressure on it before,” she said. “I’m just here in Miami, so I’m just going to go for it and see what happens.”
The top seed will be bidding for a record eighth trophy at her home event, capturing her seventh last year when she beat China’s Li Na in the final.
“I definitely don’t have low expectations,” Williams said. “I just definitely expect to do the best that I can.
“Whether that’s winning or just stepping out on the court, that’s what I’m going to have to do. I don’t feel any pressure because I have won this title a few times, so I feel good about being here.
“When I hit on the court today, I just feel so good out here in Miami. I’m just looking forward to just enjoying myself this year more than anything,” she said.
The 33-year-old American admitted that she had not imagined being able to play Miami after her knee problem, but added: “It takes a tremendous amount for me to stop. I don’t know if that’s a good thing or that’s a bad thing, but I think I will be OK.”
With all seeds on the men’s and women’s draws given byes, first round matches for the remainder continued, with two-time winner Victoria Azarenka strengthening her 2015 injury comeback with a defeat of Spain’s Silvia Soler-Espinosa 6-1, 6-3.
Azaranka missed almost all of 2014 with foot injuries but made this year’s Doha final.
“It has been unfortunate the last couple of years for me, but I love this tournament,” said the 2009 and 2011 champion. “I’m just happy to play anywhere I can.
“Obviously coming back to a place where I have a lot of great memories, it’s always nice. I’m just looking forward to building my momentum here again and try to play as many matches as possible, but really to improve my level.”
Swiss teenager Belinda Bencic advanced over veteran Daniela Hantuchova 6-1, 7-6 (7/5) and Briton Heather Watson defeated Russian Evgeniya Rodina 3-6, 6-1, 7-5.
Americans Christine McHale and Alison Riske both advanced, joining Pauline Parmentier in the second round after the French player beat Kiki Bertens 4-6, 6-2, 6-3.
read more: http://www.dailystar.com.lb/Sports/Tennis/2015/Mar-27/292262-serena-to-fight-through-knee-pain-at-miami.ashx
Tuesday, March 24, 2015
Palm Beach County outshines nation in reduction of underwater mortgages
Just 16 percent of Palm Beach County homeowners with a mortgage were underwater during the final months of 2014, compared to 16.9 percent of borrowers nationally.
Between October and the end of December, just 16.4 percent of Palm Beach County homeowners with a mortgage owed more on their loan than their home’s value, according to a new report from the Seattle-based housing data firm Zillow.
That’s an 8 percentage-point drop from the same time in 2013. At the market’s low point in 2011, 44 percent of Palm Beach County mortgages were in negative equity.
Nationally, Zillow measured a home value increase of 6 percent in 2014, while Palm Beach, Broward and Miami-Dade counties saw an increase of 14 percent.
South Florida’s decline in negative equity is also because of more homes completing the foreclosure process, wiping those defaulted mortgages off the books, Humphries said. Still, the nation is at least five years away from getting back to normal negative equity rates of between 2 and 5 percent.
read more: http://realtime.blog.palmbeachpost.com/2015/03/23/palm-beach-county-outshines-nation-in-reduction-of-underwater-mortgages/
Between October and the end of December, just 16.4 percent of Palm Beach County homeowners with a mortgage owed more on their loan than their home’s value, according to a new report from the Seattle-based housing data firm Zillow.
That’s an 8 percentage-point drop from the same time in 2013. At the market’s low point in 2011, 44 percent of Palm Beach County mortgages were in negative equity.
Nationally, Zillow measured a home value increase of 6 percent in 2014, while Palm Beach, Broward and Miami-Dade counties saw an increase of 14 percent.
South Florida’s decline in negative equity is also because of more homes completing the foreclosure process, wiping those defaulted mortgages off the books, Humphries said. Still, the nation is at least five years away from getting back to normal negative equity rates of between 2 and 5 percent.
read more: http://realtime.blog.palmbeachpost.com/2015/03/23/palm-beach-county-outshines-nation-in-reduction-of-underwater-mortgages/
Thursday, March 19, 2015
Mortgage rates falling; 30-year drops to 3.78%, Freddie Mac says
Long-term interest rates declined this week, with Freddie Mac saying lenders were offering conventional 30-year mortgages at an average of 3.78%, down from 3.86% a week ago.
The average for 15-year fixed home loans slipped from 3.1% to 3.06%, Freddie Mac said in its weekly report, released Thursday. The initial rate on loans fixed for five years before becoming variable fell from 3.01% to 2.97%.
Lower rates are good news for the low-risk borrowers Freddie focuses on as spring usually brings a season of increased home sales. A year ago at this time, Freddie put the average rate for a 30-year fixed home loan at 4.32%.
The question in Southern California will be whether that helps touch off more home sales, which have dropped compared to a year ago while prices have leveled off for the past nine months.
Nationally, signals have been mixed, with housing starts below market expectations but housing permits up 3% in February, Freddie Mac’s deputy chief economist, Len Kiefer, said as the report was released.
The yield on the 10-year Treasury bond, generally a proxy for fixed mortgage rates, closed below 2% on Wednesday for the first time since Feb. 25.
The decline was in reaction to remarks by Federal Reserve Chairman Janet Yellen, who said the Fed is in no rush to raise interest rates for the first time since 2006, even though a change in its policy language opened the door for this to happen eventually.
Freddie Mac asks lenders early each week about the terms they are offering to solid borrowers seeking mortgages of up to $417,000 that conform to the guidelines of Freddie Mac and Fannie Mae, the nation's major mortgage-financing companies.
The borrowers would have paid a little more than half of 1% of the loan balance in upfront lender fees and discount points to obtain the rates. Payments for such services as appraisals and title insurance are not included.
The survey provides a consistent gauge of mortgage trends, but actual rates adjust constantly and are influenced by many factors.
read more: http://www.latimes.com/business/la-fi-re-freddie-mac-mortgage-rates-20150319-story.html
The average for 15-year fixed home loans slipped from 3.1% to 3.06%, Freddie Mac said in its weekly report, released Thursday. The initial rate on loans fixed for five years before becoming variable fell from 3.01% to 2.97%.
Lower rates are good news for the low-risk borrowers Freddie focuses on as spring usually brings a season of increased home sales. A year ago at this time, Freddie put the average rate for a 30-year fixed home loan at 4.32%.
The question in Southern California will be whether that helps touch off more home sales, which have dropped compared to a year ago while prices have leveled off for the past nine months.
Nationally, signals have been mixed, with housing starts below market expectations but housing permits up 3% in February, Freddie Mac’s deputy chief economist, Len Kiefer, said as the report was released.
The yield on the 10-year Treasury bond, generally a proxy for fixed mortgage rates, closed below 2% on Wednesday for the first time since Feb. 25.
The decline was in reaction to remarks by Federal Reserve Chairman Janet Yellen, who said the Fed is in no rush to raise interest rates for the first time since 2006, even though a change in its policy language opened the door for this to happen eventually.
Freddie Mac asks lenders early each week about the terms they are offering to solid borrowers seeking mortgages of up to $417,000 that conform to the guidelines of Freddie Mac and Fannie Mae, the nation's major mortgage-financing companies.
The borrowers would have paid a little more than half of 1% of the loan balance in upfront lender fees and discount points to obtain the rates. Payments for such services as appraisals and title insurance are not included.
The survey provides a consistent gauge of mortgage trends, but actual rates adjust constantly and are influenced by many factors.
read more: http://www.latimes.com/business/la-fi-re-freddie-mac-mortgage-rates-20150319-story.html
Tuesday, March 17, 2015
The long, dorky history of politicians selling junk food, reverse mortgages and cures for diabetes
Former Arkansas governor Mike Huckabee (R) became known during the 2008 presidential campaign for his affability, a guy willing to leaven his conservative politics with a quality joke or two, putting him into sharp relief against Sen. John McCain (R-Ariz.) on both fronts. Huckabee parlayed that likability into a TV show on Fox News, and, more recently, into acting as a paid spokesperson.
The Times drew attention to one gig Huckabee accepted: promoting dubious informational packets on how to "reverse diabetes." You can view the spot at a Web site maintained by Barton Publishing. "I used the same techniques" as those in Barton's materials, he says, "to lose 110 pounds of fat, get my own blood sugar under control, and completely reverse my type 2 diabetes."
Huckabee is not the first former presidential candidate to shill for an iffy product; and neither is this the first iffy product for which Huckabee has shilled. (Earlier this year, his email list plugged a cure for cancer based on the Bible.) But it may be the worst combination of high-profile and low-quality that American politics has seen.
And we say that after actually having done the research to back it up. Here are other politicians' ads, ranked on a scale of 1 to 10 on two metrics: The questionability of the product and the level of recognition of the spokesman. Huckabee's diabetes system gets an 9 on questionability and a 7 on recognition, for a score of 15. As you'll see, that's the high.
see more: http://www.washingtonpost.com/blogs/the-fix/wp/2015/03/16/the-long-dorky-history-of-politicians-shilling-for-products/
The Times drew attention to one gig Huckabee accepted: promoting dubious informational packets on how to "reverse diabetes." You can view the spot at a Web site maintained by Barton Publishing. "I used the same techniques" as those in Barton's materials, he says, "to lose 110 pounds of fat, get my own blood sugar under control, and completely reverse my type 2 diabetes."
Huckabee is not the first former presidential candidate to shill for an iffy product; and neither is this the first iffy product for which Huckabee has shilled. (Earlier this year, his email list plugged a cure for cancer based on the Bible.) But it may be the worst combination of high-profile and low-quality that American politics has seen.
And we say that after actually having done the research to back it up. Here are other politicians' ads, ranked on a scale of 1 to 10 on two metrics: The questionability of the product and the level of recognition of the spokesman. Huckabee's diabetes system gets an 9 on questionability and a 7 on recognition, for a score of 15. As you'll see, that's the high.
see more: http://www.washingtonpost.com/blogs/the-fix/wp/2015/03/16/the-long-dorky-history-of-politicians-shilling-for-products/
Monday, March 16, 2015
REAL ESTATE: Pilot program to help seniors struggling with reverse mortgages
Keep Your Home California has launched a pilot program to help low- and moderate-income senior homeowners avoid foreclosure on their reverse mortgage.
Seniors at risk of losing their California home to foreclosure because of delinquent property expenses associated with a Federal Housing Administration insured reverse mortgage could qualify for up to $25,000 in assistance.
The program is aimed at helping California homeowners who are 62 or older and have a FHA Home Equity Conversion Mortgage in distress to get special counseling or financial assistance to manage delinquent property expenses.
For those who qualify, financial help may even take the form of property taxes or homeowner’s insurance.
Keep Your Home California, a program established in 2011 after California received nearly $2 billion from the U.S. Treasury’s Hardest Hit Fund, has reserved $25 million to assist to about 1,400 homeowners with their reverse mortgages.
To learn more, visit: www.KeepYourHomeCalifornia.org A Spanish language version of the website is available at www.ConservaTuCasaCalifornia.org
COLD CALL ALERT
The California Department of Business Oversight has put out a consumer alert to warn of companies which are cold-calling people in Southern California and other areas of the state to tell them they are a victim of investment fraud.
read more: http://www.pe.com/articles/california-762326-reverse-help.html
Seniors at risk of losing their California home to foreclosure because of delinquent property expenses associated with a Federal Housing Administration insured reverse mortgage could qualify for up to $25,000 in assistance.
The program is aimed at helping California homeowners who are 62 or older and have a FHA Home Equity Conversion Mortgage in distress to get special counseling or financial assistance to manage delinquent property expenses.
For those who qualify, financial help may even take the form of property taxes or homeowner’s insurance.
Keep Your Home California, a program established in 2011 after California received nearly $2 billion from the U.S. Treasury’s Hardest Hit Fund, has reserved $25 million to assist to about 1,400 homeowners with their reverse mortgages.
To learn more, visit: www.KeepYourHomeCalifornia.org A Spanish language version of the website is available at www.ConservaTuCasaCalifornia.org
COLD CALL ALERT
The California Department of Business Oversight has put out a consumer alert to warn of companies which are cold-calling people in Southern California and other areas of the state to tell them they are a victim of investment fraud.
read more: http://www.pe.com/articles/california-762326-reverse-help.html
Thursday, March 12, 2015
What you should know before you take out a reverse mortgage
When you have most of your wealth tied up in your home, it’s referred to as being “house rich, cash poor.”
Many seniors who find themselves in this position may be enticed by the commercials offering salvation. They are wooed by a chance to tap into their home’s equity with a reverse mortgage. Smooth television ads make it appear to be a no-brainer. It’s actually much more complicated.
he most appealing quality of this type of loan is that, unlike a traditional mortgage, you don’t have to make monthly payments. The lender doesn’t collect until the homeowner moves, sells or dies. Once the home is sold, any equity that remains after the loan is repaid is distributed to the person’s estate.
To qualify, you have to be 62 or older. The reverse-mortgage market isn’t huge — about 1 percent of all mortgages — but reverse-mortgage lenders are likely to pump up the volume in coming years as more seniors retire. For a lot of people, the only source of big money for them is the equity in their homes, the Consumer Financial Protection Bureau says.
In 2013, a typical household had only $111,000 in 401(k) or IRA savings, according to the Center for Retirement Research at Boston College. The center found that too many people are dipping into their retirement accounts during their working years, causing what is called a “leakage.”
But a lot of seniors have equity in their homes — about $3.84 trillion, according to one mortgage-industry survey. They can tap into that equity by selling or taking out a home equity loan or line of credit. But selling isn’t an option if they want to stay put, and they would have to make payments on the line of credit or loan. Given those options, it’s no wonder a reverse mortgage can be appealing.
see more: http://www.washingtonpost.com/business/get-there/what-you-should-know-before-you-take-out-a-reverse-mortgage/2015/02/10/ce0719b6-b163-11e4-827f-93f454140e2b_story.html
Many seniors who find themselves in this position may be enticed by the commercials offering salvation. They are wooed by a chance to tap into their home’s equity with a reverse mortgage. Smooth television ads make it appear to be a no-brainer. It’s actually much more complicated.
he most appealing quality of this type of loan is that, unlike a traditional mortgage, you don’t have to make monthly payments. The lender doesn’t collect until the homeowner moves, sells or dies. Once the home is sold, any equity that remains after the loan is repaid is distributed to the person’s estate.
To qualify, you have to be 62 or older. The reverse-mortgage market isn’t huge — about 1 percent of all mortgages — but reverse-mortgage lenders are likely to pump up the volume in coming years as more seniors retire. For a lot of people, the only source of big money for them is the equity in their homes, the Consumer Financial Protection Bureau says.
In 2013, a typical household had only $111,000 in 401(k) or IRA savings, according to the Center for Retirement Research at Boston College. The center found that too many people are dipping into their retirement accounts during their working years, causing what is called a “leakage.”
But a lot of seniors have equity in their homes — about $3.84 trillion, according to one mortgage-industry survey. They can tap into that equity by selling or taking out a home equity loan or line of credit. But selling isn’t an option if they want to stay put, and they would have to make payments on the line of credit or loan. Given those options, it’s no wonder a reverse mortgage can be appealing.
see more: http://www.washingtonpost.com/business/get-there/what-you-should-know-before-you-take-out-a-reverse-mortgage/2015/02/10/ce0719b6-b163-11e4-827f-93f454140e2b_story.html
Wednesday, March 11, 2015
Mortgage Applications Drop as Interest Rates Rise Above 4%
Mortgage applications declined for the period ending March 6 as interest rates exceeded the 4% mark for the first time since early January.
The Mortgage Bankers Association's market composite index decreased 1.3% on a seasonally adjusted basis from the prior week when mortgage application volume rose by 0.1%.
The refinance gauge was down 3% week over week to its lowest level since January, accounting for 60% of total applications. Meanwhile, the purchase index was up 3% from one week ago, as the average loan size for purchase applications increased to its highest figure since the survey started 25 years at $294,900.
Interest rates for 30-year fixed conforming mortgages and jumbo loans both elevated in the first week of March. The average contract interest rate for conforming loan balances below $417,000 increased five basis points from the previous week, to 4.01%. Furthermore, jumbo loan balances above $417,000 saw the average interest rate rise seven basis points, to 4.02%.
read more http://www.nationalmortgagenews.com/news/origination/mortgage-applications-drop-as-interest-rates-rise-above-4-1046340-1.html
The Mortgage Bankers Association's market composite index decreased 1.3% on a seasonally adjusted basis from the prior week when mortgage application volume rose by 0.1%.
The refinance gauge was down 3% week over week to its lowest level since January, accounting for 60% of total applications. Meanwhile, the purchase index was up 3% from one week ago, as the average loan size for purchase applications increased to its highest figure since the survey started 25 years at $294,900.
Interest rates for 30-year fixed conforming mortgages and jumbo loans both elevated in the first week of March. The average contract interest rate for conforming loan balances below $417,000 increased five basis points from the previous week, to 4.01%. Furthermore, jumbo loan balances above $417,000 saw the average interest rate rise seven basis points, to 4.02%.
read more http://www.nationalmortgagenews.com/news/origination/mortgage-applications-drop-as-interest-rates-rise-above-4-1046340-1.html
Monday, March 9, 2015
Mortgage: These seniors chose reverse mortgages
Mike Ryan liked what a reverse mortgage could give him: the ability to take equity out of the house, tax free and with no monthly payments. But he was skeptical, too. He thought about it for two years.
Then, Beth Paterson, executive vice president at Reverse Mortgages SIDAC, a division of Greenleaf Financial, in St. Paul, Minnesota, told Ryan he could sell his current home and use a reverse mortgage to buy a new home.
With that in mind, he was sold.
Reverse mortgage
A home equity loan in which the borrower is not required to make payments. The homeowner must be at least 62 years old. A reverse mortgage accrues interest and does not have to be repaid until the homeowner dies or moves out of the house. The Federal Housing Administration calls it a HECM, for home equity conversion mortgage.
A long climb from the garage
At the time, in mid-2013, Ryan and his wife lived in a home with a tucked-under garage and 15-step staircase to the main level.
"We wanted a single level so my wife didn't have to traverse steps up and down. Every time we went to get groceries, we had to bring them up the 15 steps and vice versa," he said.
New home
The reverse mortgage paid off an existing loan on that home and, combined with the equity from the sale, enabled the Ryans to buy their new residence.
"The old house sold for $240,000," Ryan said, "and that afforded me enough to actually put a few bucks in my pocket at the end of the day."
The Ryans' new home, bought for $400,000 in November 2013, also has two levels, but the main living area is on the first level, just two steps up from the garage. The lower level is a walk-out basement that contains storage space and a guest bedroom.
No worries
The up-front fees and interest costs were "one of the drawbacks," Ryan said, but he adds that he and his wife had no concerns about using their home equity.
"We're the perfect candidates for a reverse mortgage because there's no one for us to be leaving our money to," he said. "The idea is: Why shouldn't I enjoy the fruits of my labor when I was younger in my old age if it makes it a little easier for me? It's the perfect tool."
So far, Ryan said, he has no regrets about the reverse mortgage, although it was difficult to move out of the home where he and his wife had lived 38 years.
read more: http://www.chron.com/news/article/Mortgage-These-seniors-chose-reverse-mortgages-6105516.php
Then, Beth Paterson, executive vice president at Reverse Mortgages SIDAC, a division of Greenleaf Financial, in St. Paul, Minnesota, told Ryan he could sell his current home and use a reverse mortgage to buy a new home.
With that in mind, he was sold.
Reverse mortgage
A home equity loan in which the borrower is not required to make payments. The homeowner must be at least 62 years old. A reverse mortgage accrues interest and does not have to be repaid until the homeowner dies or moves out of the house. The Federal Housing Administration calls it a HECM, for home equity conversion mortgage.
A long climb from the garage
At the time, in mid-2013, Ryan and his wife lived in a home with a tucked-under garage and 15-step staircase to the main level.
"We wanted a single level so my wife didn't have to traverse steps up and down. Every time we went to get groceries, we had to bring them up the 15 steps and vice versa," he said.
New home
The reverse mortgage paid off an existing loan on that home and, combined with the equity from the sale, enabled the Ryans to buy their new residence.
"The old house sold for $240,000," Ryan said, "and that afforded me enough to actually put a few bucks in my pocket at the end of the day."
The Ryans' new home, bought for $400,000 in November 2013, also has two levels, but the main living area is on the first level, just two steps up from the garage. The lower level is a walk-out basement that contains storage space and a guest bedroom.
No worries
The up-front fees and interest costs were "one of the drawbacks," Ryan said, but he adds that he and his wife had no concerns about using their home equity.
"We're the perfect candidates for a reverse mortgage because there's no one for us to be leaving our money to," he said. "The idea is: Why shouldn't I enjoy the fruits of my labor when I was younger in my old age if it makes it a little easier for me? It's the perfect tool."
So far, Ryan said, he has no regrets about the reverse mortgage, although it was difficult to move out of the home where he and his wife had lived 38 years.
read more: http://www.chron.com/news/article/Mortgage-These-seniors-chose-reverse-mortgages-6105516.php
Tuesday, March 3, 2015
When You Should (and Shouldn’t) Get a Reverse Mortgage
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ADVERTISER DISCLOSURE
When You Should (and Shouldn’t) Get a Reverse Mortgage
by MJ Knoblock on March 2, 2015 | posted in Library - Mortgages
There’s comfort in owning a home, especially when you’ve lived there for many years. Reverse mortgages are a special kind of home equity loan designed to help you stay in your home in your senior years while providing you with cash for living expenses.
How reverse mortgages work
You must be at least 62 years old to qualify. As with a traditional home equity loan, your ability to borrow hinges on the equity value you’ve built up in the property. The more equity you have, the lower the interest rate on what you borrow. You can choose to receive the loan as a lump sum, a fixed monthly payout or a line of credit that lets you draw out money as needed. Unlike a traditional home equity loan, a reverse mortgage comes without a credit check. This is balanced with additional upfront fees, as well as interest.
You don’t have to repay the loan for as long as you live in your home. You repay when you move out. If you die while still living in the home, your heirs must repay the loan. In either case, the loan is usually repaid simply by selling the home. According to the Consumer Financial Protection Bureau, neither you nor your heirs will have to repay more than the home is worth.
Benefits
The main advantage is the extra money it puts in your pocket. This can be used to pay off debt or live more comfortably. Reverse mortgages work for a wide range of needs. They offer wiggle room for those living on fixed incomes, covering unexpected medical bills or traveling. If you hope to stay in your home for several more years, a reverse mortgage can help you make it happen.
Drawbacks
Property taxes and insurance remain your responsibility; you can lose your home if you fail to pay these costs, as the lender can foreclose. If you start taking out money too early, you may run out of equity unless your home’s value increases substantially. The loan principal and interest continue to grow until you pay off what you’ve borrowed or sell the home. Finally, a reverse mortgage may make it impossible to pass the home to your heirs, if neither you nor they have the resources to pay off the loan without selling the property.
Considerations
A reverse mortgage isn’t a good fit for everyone.
Most reverse mortgage lenders prefer that you own your home outright. If you don’t, you may be required to use some of the money from a reverse mortgage to pay off other home loans.
Money from a reverse mortgage can potentially bump you into a higher tax bracket or disqualify you for certain government programs. Research your financial status carefully.
If you find budgets annoying and tend to spend money freely as long as it’s available, a reverse mortgage probably isn’t for you.
When you’re planning to stay in your home for a while, a reverse mortgage loosens the restraints of fixed income and debt that many seniors face.
read more: https://www.nerdwallet.com/blog/fi-library/fi-library-mortgages/reverse-mortgage/
Home
Library - Mortgages
ADVERTISER DISCLOSURE
When You Should (and Shouldn’t) Get a Reverse Mortgage
by MJ Knoblock on March 2, 2015 | posted in Library - Mortgages
There’s comfort in owning a home, especially when you’ve lived there for many years. Reverse mortgages are a special kind of home equity loan designed to help you stay in your home in your senior years while providing you with cash for living expenses.
How reverse mortgages work
You must be at least 62 years old to qualify. As with a traditional home equity loan, your ability to borrow hinges on the equity value you’ve built up in the property. The more equity you have, the lower the interest rate on what you borrow. You can choose to receive the loan as a lump sum, a fixed monthly payout or a line of credit that lets you draw out money as needed. Unlike a traditional home equity loan, a reverse mortgage comes without a credit check. This is balanced with additional upfront fees, as well as interest.
You don’t have to repay the loan for as long as you live in your home. You repay when you move out. If you die while still living in the home, your heirs must repay the loan. In either case, the loan is usually repaid simply by selling the home. According to the Consumer Financial Protection Bureau, neither you nor your heirs will have to repay more than the home is worth.
Benefits
The main advantage is the extra money it puts in your pocket. This can be used to pay off debt or live more comfortably. Reverse mortgages work for a wide range of needs. They offer wiggle room for those living on fixed incomes, covering unexpected medical bills or traveling. If you hope to stay in your home for several more years, a reverse mortgage can help you make it happen.
Drawbacks
Property taxes and insurance remain your responsibility; you can lose your home if you fail to pay these costs, as the lender can foreclose. If you start taking out money too early, you may run out of equity unless your home’s value increases substantially. The loan principal and interest continue to grow until you pay off what you’ve borrowed or sell the home. Finally, a reverse mortgage may make it impossible to pass the home to your heirs, if neither you nor they have the resources to pay off the loan without selling the property.
Considerations
A reverse mortgage isn’t a good fit for everyone.
Most reverse mortgage lenders prefer that you own your home outright. If you don’t, you may be required to use some of the money from a reverse mortgage to pay off other home loans.
Money from a reverse mortgage can potentially bump you into a higher tax bracket or disqualify you for certain government programs. Research your financial status carefully.
If you find budgets annoying and tend to spend money freely as long as it’s available, a reverse mortgage probably isn’t for you.
When you’re planning to stay in your home for a while, a reverse mortgage loosens the restraints of fixed income and debt that many seniors face.
read more: https://www.nerdwallet.com/blog/fi-library/fi-library-mortgages/reverse-mortgage/
Monday, March 2, 2015
Greenfield provides mortgage help for homeowners
In an effort to assist struggling homeowners in his district, Councilmember David Greenfield is working with Brooklyn Housing and Family Services to provide free one-on-one mortgage counseling.
Greenfield (D-Borough Park-Midwood-Bensonhurst) is providing space in his district office at 4424 16th Ave. where homeowners who are in danger of losing their homes or have encountered changes in their financial circumstances can meet privately with an attorney.
The free consultation service will be available at Greenfield’s office on the last Tuesday of each month.
Appointments are required. Homeowners can schedule an appointment by calling Greenfield's office at 718-853-2704. Homeowners are required to bring two forms of photo identification, their most recent mortgage statement for loan, a hardship letter if behind on mortgage payments and all other relevant documents to the appointment.
The lawyer from Brooklyn Housing and Family Services will also answer questions on credit or budget issues, predatory lending, interest rate issues, late mortgage payments and foreclosure prevention.
The area of Brooklyn that Greenfield represents has a large number of homeowners in danger of foreclosure, according to the councilmember’s office.
"Owning a home is as rewarding as it is stressful. Many people fall behind on their mortgage payments which could result in unnecessary foreclosures and losses of their homes. That's why I have decided to partner with the outstanding Brooklyn Housing and Family Services to bring mortgage advice directly to them,” Greenfield said in a statement. “I am thrilled to already have helped connect dozens of residents with free legal help, and will continue to work with great organizations like Brooklyn Housing and Family Services to continue this effort.”
Greenfield also hosts the City University of New York’s Citizenship Now! program at his district office on the second and fourth Wednesdays of each month for those who need legal assistance with immigration-related issues.
Under the program, an attorney is available to provide help with issues like naturalization, relative petitions, adjustment of status, consular processing, certificates of citizenship, replacement of lost or damaged documents, visa lottery entries and fee waiver applications.
see more: http://www.brooklyneagle.com/articles/2015/2/27/greenfield-provides-mortgage-help-homeowners
Greenfield (D-Borough Park-Midwood-Bensonhurst) is providing space in his district office at 4424 16th Ave. where homeowners who are in danger of losing their homes or have encountered changes in their financial circumstances can meet privately with an attorney.
The free consultation service will be available at Greenfield’s office on the last Tuesday of each month.
Appointments are required. Homeowners can schedule an appointment by calling Greenfield's office at 718-853-2704. Homeowners are required to bring two forms of photo identification, their most recent mortgage statement for loan, a hardship letter if behind on mortgage payments and all other relevant documents to the appointment.
The lawyer from Brooklyn Housing and Family Services will also answer questions on credit or budget issues, predatory lending, interest rate issues, late mortgage payments and foreclosure prevention.
The area of Brooklyn that Greenfield represents has a large number of homeowners in danger of foreclosure, according to the councilmember’s office.
"Owning a home is as rewarding as it is stressful. Many people fall behind on their mortgage payments which could result in unnecessary foreclosures and losses of their homes. That's why I have decided to partner with the outstanding Brooklyn Housing and Family Services to bring mortgage advice directly to them,” Greenfield said in a statement. “I am thrilled to already have helped connect dozens of residents with free legal help, and will continue to work with great organizations like Brooklyn Housing and Family Services to continue this effort.”
Greenfield also hosts the City University of New York’s Citizenship Now! program at his district office on the second and fourth Wednesdays of each month for those who need legal assistance with immigration-related issues.
Under the program, an attorney is available to provide help with issues like naturalization, relative petitions, adjustment of status, consular processing, certificates of citizenship, replacement of lost or damaged documents, visa lottery entries and fee waiver applications.
see more: http://www.brooklyneagle.com/articles/2015/2/27/greenfield-provides-mortgage-help-homeowners
Sunday, March 1, 2015
Freddie Mac: Mortgage rates increase three weeks straight
Although mortgage rates grew for the third consecutive week, they still remain near lows experienced in late May 2013, the latest Freddie Mac Primary Mortgage Rate Survey found.
The 30-year, fixed-rate mortgage averaged 3.80% for the week ended Feb. 26, up from last week’s 3.76%. A year ago, it averaged 4.37%.
The 15-year, fixed-rate mortgage increased to 3.07%, compared to 3.05% a week ago. In 2014, it came in at 3.39%.
Meanwhile, the 5-year Treasury-indexed hybrid adjustable-rate mortgage grew from 2.97% last week to 2.99%. A year ago, the 5-year ARM averaged 3.05%.
The 1-year Treasury-indexed ARM averaged 2.44%, down from 2.45% last week, and 2.52% a year ago.
“Mortgage rates rose for the third consecutive week in February following solid housing data. New home sales beat market expectations at an annual pace of 481,000 units, down slightly from 482,000 units in December, but up 5.3% from a year ago. Also, the S&P/Case-Shiller National House Price Index rose 4.6% over the 12-months ending in December 2014,” said Len Kiefer, deputy chief economist with Freddie Mac.
On the other hand, Bankrate reported mortgage rates dropping after last week's increase, with the benchmark 30-year fixed mortgage rate pulling back to 3.90%.
The 15-year fixed dropped to 3.15%, down from 3.21% last week, while the 5/1 ARM dipped to 3.22%, down from 3.31% last week.
read more: http://www.housingwire.com/articles/33077-freddie-mac-mortgage-rates-increase-three-weeks-straight
The 30-year, fixed-rate mortgage averaged 3.80% for the week ended Feb. 26, up from last week’s 3.76%. A year ago, it averaged 4.37%.
The 15-year, fixed-rate mortgage increased to 3.07%, compared to 3.05% a week ago. In 2014, it came in at 3.39%.
Meanwhile, the 5-year Treasury-indexed hybrid adjustable-rate mortgage grew from 2.97% last week to 2.99%. A year ago, the 5-year ARM averaged 3.05%.
The 1-year Treasury-indexed ARM averaged 2.44%, down from 2.45% last week, and 2.52% a year ago.
“Mortgage rates rose for the third consecutive week in February following solid housing data. New home sales beat market expectations at an annual pace of 481,000 units, down slightly from 482,000 units in December, but up 5.3% from a year ago. Also, the S&P/Case-Shiller National House Price Index rose 4.6% over the 12-months ending in December 2014,” said Len Kiefer, deputy chief economist with Freddie Mac.
On the other hand, Bankrate reported mortgage rates dropping after last week's increase, with the benchmark 30-year fixed mortgage rate pulling back to 3.90%.
The 15-year fixed dropped to 3.15%, down from 3.21% last week, while the 5/1 ARM dipped to 3.22%, down from 3.31% last week.
read more: http://www.housingwire.com/articles/33077-freddie-mac-mortgage-rates-increase-three-weeks-straight
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