This article, originally published in the Journal of Taxation, examines the conditions, requirements, and limitations on deductions of the interest accrued on reverse mortgage loans. Although the conventional approach for passing a borrower’s home equity to heirs generally results in the loss of the deduction for reverse mortgageloan interest, the deduction may be used if it […]
A decade ago, most financial advisers would roll their eyes at the mention of reverse mortgages, loans that give homeowners an advance on their home equity and allow them to delay repayment until the home is sold. However, today, some new regulations and ideas about reverse mortgages might be just the solution. See more on […]
The accrued equity in your home can help fund your retirement. The four reasons why a reverse mortgage make sense for retirement are: No Credit Requirements A reverse mortgage is not based upon your credit rating. However, your credit history will be checked for state and federal tax liens. No Income Requirements Whether you […]
As retirement nears, many older couples consider refinancing their mortgage on their current home. But there may be better financial options. One is the equity conversion mortgage (HECM) for purchase, a type of reverse mortgage. It could allow you to downsize your current home, buy a new one, and eliminate monthly mortgage payments. Read more about the […]
Do you know you can change your financial position by downsizing your home? The link below illustrates how you can sell your current home, and then increase your investable assets when you purchase a new one. Read more to find out how you can eliminate monthly mortgage payments and increase cash flow during retirement: Downsizing For […]
Between 1998 and 2012, the share of adults age 65 and older with household debt increased from 30 to 44 percent. Read more about how increased debt has changed retirement has changed retirement in America HERE
Many retirees face the prospect of running out of money as they age. The reverse mortgage is a financial instrument that can brighten the financial prospects of older Americans and reduce the chances of an old age spent in financial straits. Read more from the NRMLA website HERE
According to the Center for Retirement Research, a reverse mortgage makes sense for people who don’t plan to move, can afford the cost of maintaining their home and want to access the equity in their home to supplement their income. Read more to see the pros and cons of Reverse Mortgages and if they could […]
Reverse mortgages have been receiving a lot of fanfare lately as seniors look for ways to finance their retirement. Surprisingly, in 2015 fewer than 1 percent of Americans age 62 and older had taken out a reverse mortgage. But that could be changing as more seniors are doing their research and becoming more open to […]
Seniors drove their share of home equity to $5.76 trillion and rocketed the NRMLA/RiskSpan Reverse Mortgage Market Index (RMMI) to an all-time high in Q3 2015 of 200.19 as reported by The National Reverse Mortgage Lenders Association (NRMLA). Read more about seniors and home equity from NMP online HERE
