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aarp and reverse mortgages

AARP sues HUD over Reverse Mortgages: What is a reverse mortgage ttp In this video, real estate attorney hugh Fitzpatrick from Tewksbury Massachusetts discusses the lawsuit ...

Tom Kelly: Let's keep seniors from falling through the cracks

Sometimes, the best-laid plans …

A reverse mortgage historically has enabled senior homeowners to convert part of the equity in their homes into tax-free income without having to sell the home, give up title, or take on a new monthly mortgage payment. Reverse mortgages are available to individuals 62 or older who own their home.

Funds obtained from the reverse mortgage are tax-free. The proceeds can be received in a lump sum, regular monthly payments, a line of credit or in a combination of those options. Interest is charged on the amount drawn, adding to the original amount. When the house is sold, or the last remaining borrower dies or moves out of the home, the loan amount plus the accrued interest is repaid. The borrower makes no monthly payments and cannot owe more than the value of the home.

We have a friend – let’s call her Sally – who gathered all the reverse mortgage information she could find for her mother, now age 97. Sally even attended the mandatory reverse mortgage counseling session in her mom’s behalf.

Paralyzed by retirement saving? Playing catch-up can be easier than you think

Financial planner Christopher Tully, with Eagle Wealth Strategies in West Deptford, noted that “the scary part for a lot of folks is they come in with a set retirement date. They’ve made up their minds about when, but never looked at the math.”

Some prospective clients come in with $100,000, “but have no idea what it equates to in annual spending. They’re not doing simple math. Some people can’t live without spending on grandkids. Some assume death will bail them out, but not if they have longevity in their families,” he said.

Tully starts the conversation by proposing a flexible retirement date.

“One prospect in their mid-40s came to us and said flat out, ‘I haven’t done a good job saving, I was raising kids and starting a business.’ They want to get serious about saving. We asked: When did they think they would retire? Is it a flexible date? What’s the amount you want to spend every year? Just putting them through the results, we get an idea of their pain points and where they can bend.”

What are your mute-button commercials?

You know. TV ads that are so annoying that you have to dive for the mute button to avoid hearing them.

Flooring Express. Ugh.