I was driving my kids to school today and heard an advertisement for a movie that was so real and so frightening that I almost drove my car off the road.  The movie is called Drag Me To Hell and yet not having seen the movie, I am already scared on several levels.  First of all the entire conflict starts when an elderly woman walks into her local bank to ask for an extension on her loan.  The bank manager, in an attempt not to roll over and show any degree of pity, denies the extension.  Oh m... Read Full Story

I was recently speaking to a loan officer I met who worked in Arizona, named Anne.  She had been a successful for the better part of her 7 year career, having decided to jump into the mortgage game at the beginning of the mortgage boom we all experienced, and admittedly enjoyed, even though it lead to where we are today.  However this young woman was a brass go-getter.  Her motivation was the money.  (Which is not to say it was simply greed).  None-the-less, she made the move from being an as... Read Full Story

Many people, seniors and juniors alike, have a misconception that a reverse mortgage is nothing more than selling your home to the bank.   There is no more truth in that than saying you own your home now, knowing that the bank holds a note on it worth 95% of the current value.    A Reverse Mortgage is a mortgage just like the 30-year fixed we all know and love.  We, as homeowners, have the right to do what we like with our home, without having to consult with the bank. We are on the title, an... Read Full Story

I recently received an email from a reader that seemed to understand the concept of a Reverse Mortgage, but still did not completely understand what exactly a Reverse Mortgage was.  Oddly enough I kind of understand where he is coming from.  Think about all the things in life you fake.  Or the things you have just enough information about to get you in trouble.  I was a mortgage banker in my previous life.  (Sometimes I feel like a cat, I have so many lives).  In any case, my point was that I... Read Full Story

As with most things in life, people seem to take radical sides when it comes to Reverse Mortgages.  Some advocate that Reverse Mortgages are the saving grace for seniors, while others want to focus on the costs involved in a Reverse Mortgage and say these HECM Loans are praying on the elderly.   All in all, it’s a tough argument, but the reality is that it goes back to the familiar saying of “pay me now or pay me later.”  The first thing we all need to comprehend is that mortgages aren’t fr... Read Full Story

With the popularity of Reverse Mortgages, it is probably a good time to understand what exactly is a Reverse Mortgage.  Oddly enough some people think it is nothing more than a bank buying your home.  I would have to agree on the practical level there’s a great deal of truth in that.  But I guess it’s also true that the bank owns your home with any mortgage.  Many people understand the difference between an Adjustable Rate Mortgage, (ARM), and a 30 Year Fixed; in comparison I would like to ta... Read Full Story

With the recent downturn in the stock market, many seniors who had spent years saving money and investing it, in hopes that they would be able to spend time with their grandchildren or travel the World, have found themselves in an unforeseen situation.  The money they saved has drastically been reduced, if not gone altogether.  Fortunately these same individuals have also been paying down their mortgages thus creating substantial equity in their homes, allowing them to fall back on Reverse M... Read Full Story

A recent conversation with a homeowner revealed they were considering retiring at 65 but didn’t know if they could afford their current mortgage payments and other monthly debts with their social security and pension. He said he’s experiencing some troublesome back pain that is causing problems performing at his job and that he’s inquired about other positions within his company that doesn’t require him to be on his feet all day. He is not in the financial position h... Read Full Story

This website and others have been offering their opinion on the use of reverse mortgages to take the pressure off the portfolio for some time now. The Wall Street Journal recently recognized the same in an article from Anne Tergesen entitled Reverse Mortgage: Get Cash Use Caution. What is important to understand is in hind sight, there are ton of folks that could have protected their investments valued more significantly than their real estate holdings by use of a reverse mortgage. If you w... Read Full Story

Pick up a dictionary and look up the word stimulus and you’ll see- something that incites to action or exertion or quickens action, feeling, thought, etc.: The approval of others is a potent stimulus. Synonyms include incitement, motive, provocation, stimulant. The stimulus package signed by the President on February 18th was meant to do just that, stimulate the economy. It is an ambitious plan of federal spending and tax cuts meant to awaken our economy and save/generate new jobs. T... Read Full Story