Sam in Reverse

The Federal Reserve has been rightly criticized for not protecting borrowers — and the economy — in the years before the financial crisis. Under the law, it had the power and the obligation to curb bad lending. It was warned, by Fed insiders and by consumer advocates, of lender recklessness. It still failed to act. Read more at the NY Times http://www.nytimes.com/2010/12/20/opinion/20mon2.html

If you’ve been snubbing a reverse mortgage, or counseling your elderly parents against it, take another look. These notoriously expensive loans are now on sale for less. You’re right to be careful about the loans. If mis-sold, they can leave you poor — and the press tells plenty of tales about mistakes. On the other hand, the right loan at the right time can lift you out of a pinched life of living on Social Security and measly certificates of deposit. Read more http://moneywatch.bnet.com/investing/blog/make-money/4-reasons-why-you-should-give-reverse-mortgages-another-look/719/?tag=content;col1

Despite concerns from consumer advocates about the suitability of reverse mortgages, results from a new poll show that almost 75 percent of reverse mortgage borrowers described their experience as a positive one. http://reversemortgagedaily.com/2010/12/09/seniors-pleased-with-reverse-mortgage-experience-says-poll/

Buried in debt and struggling to pay her monthly bills, Robin Miles resisted a reverse mortgage as a possible way out of those problems. Read more: http://www.nydailynews.com/real_estate/2010/11/06/2010-11-06_new_taxfree_governmentinsured_reverse_mortgages_offer_alternative_for_cashstrapp.html#ixzz155IKUaXT

With the cost of living and life expectancy continuing to rise, senior citizens are facing a double whammy. Add to that high insurance costs, medical expenses and mortgage payments, some retired individuals are struggling to keep their heads above water without a steady income coming in any more. Looking for a revenue stream, some elderly homeowners are turning to reverse mortgages. Read further at http://www.foxbusiness.com/personal-finance/2010/08/02/reverse-mortgages-right/#content

http://online.wsj.com/article/SB127760222909210967.html?KEYWORDS=reverse+mortgage

As fees drop, some people tap reverse mortgages as a way to keep their homes http://www.marketwatch.com/story/reverse-mortgages-now-a-less-costly-lifeline-2010-06-28

The latest data shows that the average rate for a 30 year fixed rate mortgage declined 2 basis points since the last week to 4.81 percent. http://www.csmonitor.com/Money/Paper-Economy/2010/0609/Mortgage-rates-continue-to-drop

The spring issue of the Federal Deposit Insurance Corporation’s Consumer News includes a section on understanding the risks and costs of a reverse mortgage. Produced quarterly by the FDIC Office of Public Affairs in cooperation with other Divisions and Offices, the publication is intended to present information in a nontechnical way for consumers. FDIC Consumer News Publishes Reverse Mortgage Feature

The article linked below will give you lots of food for thought.  Contrary to what most believe,  paying off your mortgage too quickly may not be in your best interest (no pun intended)... http://www.ricedelman.com/cs/education/article?articleId=232

The link below takes you to a new York Times article.  What many forget to mention is that in New York State you don't pay mortgage tax on a reverse mortgage.  Thats a savings of at least 1% and in some counties more than 2%.  With origination fees lowered, and monthly service feeswaived,  reverse mortgages become cheaper that forward mortgages in some cases.  Every loan is different but definitely worth looking into. http://www.nytimes.com/2010/04/17/your-money/mortgages/17money.html#

Mortgage rates greatly benefited from headline news yesterday. Around mid-morning we learned that Standard and Poor's had cut Greece's government debt rating all the way down to junk. That is as low as ratings go! Stocks, which have rallied for eight consecutive weeks, sold off sharply on the news. This was a positive for mortgage rates because stock selling led to a "flight to safety" rally in the bond market which pushed benchmark Treasury yields lower and mortgage-backed security prices higher. Gains in the secondary market were large enough to allow lenders to reprice mortgage rate sheets for the better. Mortgage Rates Tip-Toe Around Headline News and Events

Goldman Carries Heavy Burden. One The Mortgage Industry Knows Too Well

Several of the bankers testifying before the House Financial Services Committee on Tuesday drew a close connection between principal reduction and the impediment to loan modifications posed by the existence of second mortgages. As was  covered in our earlier report , David Lowman, CEO for Home Lending at J.P. Morgan Chase was the most outspoken of the four witnesses on the topic of principal reduction, drawing what several newspapers called "a line in the sand" about what his bank is willing to do in that area. He took a similar tack on second mortgages. First, he stressed that Chase  borrowers were no more likely to be delinquent on second mortgages than on the primary loan .  He said that Chase data shows that 97 percent of borrowers in Chase's $98 billion second lien portfolio are performing on their loans, a percentage that drops only two points when the borrowers have a loan to value (LTV) exceeding 100 percent. See the rest of the article at http://www.mortga

BORROWERS in New York may not be aware of this: They pay some of the highest closing costs in the country, because of a mortgage-recording tax that few other states levy. But depending on the outcome of a lawsuit now being argued in New York Supreme Court, those who obtain mortgages through federal credit unions in the state may be able to avoid that tax, and save thousands of dollars on a purchase or refinancing. Click to read more http://www.nytimes.com/external/gigaom/2010/04/02/02gigaom-10-simple-google-search-tricks-58674.html?src=me&ref=general

Reverse Mortgage Loan May Benefit Financially Struggling Seniors | Red, White, & Blue Press

Those who qualify for a reverse mortgage may be able to reap more benefits from doing so than refinancing their home loan for a lower mortgage rate or mortgage payment. If you have equity in your home and are over the age of 62 you are able to get a reverse mortgage loan. However, it will depend on your personal situation as to whether it is in your best interest to do so or not. A reverse mortgage basically gives you money based on your home’s value, your age, and how much, if any, you owe on your home, among other things. A reverse mortgage can be valuable if you owe little or no money on your home because the money from a reverse mortgage must first go toward your mortgage. If you qualify for a $200,000 reverse mortgage and owe $50,000 on your home, you only keep $150,000. Obviously, this is going to be helpful, as you have paid off your mortgage balance and have money left over. In some cases, a reverse mortgage is going to be equal to or less than what you owe on your home, a

Homeowners who hope to refinance existing mortgages that are "underwater" just got a reprieve that will allow them another year to do so. The Federal Home Financing Agency announced Monday that its Home Affordable Refinance Program (HARP), which was originally set to expire on June 30, 2010, will be extended to June 30, 2011. HARP, part of the Making Home Affordable Program, is designed to expand access to refinancing for otherwise qualified borrowers who cannot move into more affordable mortgages because of a lack of equity in their homes. Unlike other homeownership assistance programs, HARP guidelines are designed for borrowers who are current on their mortgages. The program was originally designed to help homeowners with a loan-to-value (LTV) ratio up to 105 percent including those with some equity but not enough to refinance without private mortgage insurance. Last October that LTV figure was revised upward to 125 percent. Acting FHFA Director Ed DeMarco said tha

Reverse mortgages are becoming popular in America. HUD's Federal Housing Administration (FHA) created one of the first. The Home Equity Conversion Mortgage (HECM) is FHA's reverse mortgage program which enables you to withdraw some of the equity in your home. The HECM is a safe plan that can give older Americans greater financial security. Many seniors use it to supplement social security, meet unexpected medical expenses, make home improvements and more. You can receive free information about reverse mortgages in general by calling AARP toll free at (800) 209-8085. Since your home is probably your largest single investment, it's smart to know more about reverse mortgages, and decide if one is right for you! See the whole article on HUD's website http://www.hud.gov/offices/hsg/sfh/hecm/rmtopten.cfm

Seniors Considering Reverse Mortgages to Help Tide Over Investment Income Declines | Reverse Mortgage Information

Business Finance Marketing � Blog Archive � Applying for a Reverse Mortgage

Finding Money to Take Care of Grandma - WSJ.com

The Reverse Review | Daily Reverse Mortgage News | How Reverse Mortgages Can Prevent Financial Exploitation of the Elderly

How Reverse Mortgages Can Prevent Financial Exploitation of the Elderly | Penner Law Firm Blog

In Obama’s Budget, Help for Caregivers - The New Old Age Blog - NYTimes.com

Over-medication is a serious risk in nursing homes

Vital Signs - Study Links Higher Medicare Co-Payments to Costlier Care - NYTimes.com : "Aging: Higher Co-Payments Tied to Costlier Care"

Check this out http://www.fanniemae.com/homepath/incentive/index.jhtml

Legendary Actor and AAG Spokesperson, Peter Graves, Speaks Out for Reverse Mortgages -- IRVINE, Calif., Jan. 28 /PRNewswire/ --

Mortgage rates dip 4th straight week: Freddie Mac | Reuters

Mortgage rates improved a few basis points yesterday. Lenders were somewhat subdued in passing along interest rate improvements though. This is a function of a few reasons. First, mortgage-backed securities prices have held to a tight range over the course of the week. The second reason is a bit more obvious, the FOMC meeting ended today at 2:15pm. This was a major market event, so it makes sense that lenders would be defensive ahead of a scheduled event that had the potential to move interest rates in either direction. Before getting to the impact of the FOMC on mortgage rates, allow me to recap the day's economic data releases. Early this morning, the Mortgage Bankers’ Association released their weekly applications index. The MBA survey covers over 50 percent of all US residential mortgage loan applications taken by mortgage bankers, commercial banks, and thrifts. The data gives economists a look into consumer demand for mortgage loans. A rising trend of mortgage applications

The $8,000 tax credit is for first-time home buyers only. For the tax credit program, the IRS defines a first-time home buyer as someone who has not owned a principal residence during the three-year period prior to the purchase. The tax credit does not have to be repaid unless the home is sold or ceases to be used as the buyer’s principal residence within three years after the initial purchase. The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000. The tax credit applies only to homes priced at $800,000 or less. The tax credit now applies to sales occurring on or after January 1, 2009 and on or before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, a home purchase completed by June 30, 2010 will qualify. For homes purchased on or after January 1, 2009 and on or before November 6, 2009, the income limits are $75,000 for single taxpayers and $150,000 for married couples filing jointly. For homes pu

From The Washington Post Reverse mortgages are for seniors who don't have enough spendable income to meet their needs but do have equity in their homes, which they don't mind depleting for their own use rather than leaving it for their heirs. For reasons not clear to me, reverse mortgages are being bad-mouthed by an unlikely source: consumer groups that are supposed to represent the interest of consumers in general, and seniors in particular. Continue

Check out the current mortgage rates http://www.mortgagenewsdaily.com/mortgage_rates/

A worthwhile article on CNN http://money.cnn.com/2010/01/07/real_estate/last_chance_refinance/index.htm