Rating Reverse mortgage Companies

Texas Reverse Mortgages

At a time when many baby boomers are struggling to pay mortgages on homes that have lost value, the ads for reverse mortgages can sound like a lifeline. "There can still be so many happy times ahead of you, " proclaims Henry Winkler, the actor known for his role as Fonzie on the "Happy Days" TV series. In an ad for One Reverse Mortgage, Winkler suggests that seniors turn their home equity into "tax-free cash that you can use for anything."

But don't reach for one too quickly. Reverse mortgages, which carry huge costs, can lead to foreclosure and should be seen only as a last resort.

Reverse mortgages allow people who are at least 62 years old to cash in some of their home equity for a lump sum or regular payouts while staying in the home. As long as borrowers maintain the home and pay the property tax and insurance premiums, the loan doesn't have to be repaid until the last borrower dies, sells the place, or lives elsewhere for 12 months. One Reverse Mortgage is a major lender, as are Wells Fargo, Bank of America, and MetLife Bank.

Most reverse mortgages are insured through the Federal Housing Administration's Home Equity Conversion Mortgage (HECM) program. Recent changes in that program and heightened competition among lenders are resulting in new loan options and lower up-front costs.

But other costs have increased dramatically, and ballooning finance charges can quickly drain your home equity. You also risk foreclosure if you can't afford the property tax and insurance and can't work out a repayment plan, under new federal guidelines announced in January. Those defaults and other costs are threatening the solvency of the government insurance fund that makes the loans virtually risk-free for lenders. (See For lenders, federal bailout paid by borrowers.)


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The mortgage interest deduction

2005-10-13 19:50:10 by storeez

Not sure who all this proposal is going to affect in here, but Bush's advisors have suggested that the current 1 million dollar ceiling be dropped to about $350,000.
What this effectively means is that if your mortgage is $350,000, you still get all your deductions. But if it is 600,000, you get to deduct only the interest paid on the first $300,000. This means an increase in tax liability of major proportions for those who have large mortgages.
On the west coast here, in the Bay Area, the average home price for a place most would feel OK living in is over $600,000. Now. If this proposal goes through, even with fairly low interest rates, the people who otherwise could afford to buy no longer can do so

Can you find another 10% investment?

2013-05-18 14:31:38 by bobrogve

I'd like to get in on it.
What's the home price to median income ratio in your area?
One caveat is that the Fed is now making noises about ending QE. I don't know how much longer they'll keep interest rates low after that. They have promised not to raise rates until unemployment improves, but Bernanke will be gone next year. The new chair may be a dove too, but it's a risk nonetheless.
Interest rate hikes will depress home (and bond) prices, all else being equal

Here's better reason & does anyone long for JFK

2008-03-17 12:55:14 by LivaLittle

And the way reporters ignored his affairs? Ditto FDR and Dwight Eisenhower. Today's tabloid-ish snoopery into one's sex life needs a return to the days and ways of old.
Now, actual reasons Spitzer was outted so thoroughly:
Since Bush came to power, a new species of loan became the norm, the ‘sub-prime’ mortgage and its variants including loans with teeny “introductory” interest rates. From out of nowhere, a company called ‘Countrywide’ became America’s top mortgage lender, accounting for one in five home loans, a large chunk of these ‘sub-prime

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