The importance of effective distribution strategies is rapidly increasing as 78 million baby boomers approach retirement over the next decade.1 The diminished role of defined benefit plans, longer life expectancy, escalating health care costs, and poor equity returns over the last decade are just a few of the issues confronting retirees that create a challenging […]
Reverse Mortgage
The Hidden Value of a Reverse Mortgage Standby Line of Credit
Several recent research articles published in the Journal of Financial Planning have investigated how opening a standby line of credit through a reverse mortgage and strategically spending from this line of credit can help improve the sustainability of retirement income strategies. In this article, I show that the benefits of opening a home-equity conversion mortgage […]
Several New (and surprisingly beneficial) Uses for Reverse Mortgages in: Gray Divorce, Retirement Income Planning, Settling Estates, BK13 and Solving for Foreclosure
Tuesday, July 19th @ 12:00 pm – 1:30 pm, San Rafael Attention Marin County Bar Association Members -Family Section and Others Speakers: Mary Jo Lafaye, nmls #246222, HECM Reverse Mortgage Specialist and Barry H. Sacks, J.D., Ph.D. “Gray Divorce” is increasing. This course will focus on the evolving understanding of the use of reverse mortgages […]
Recovering a Lost Deduction
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 […]
Tax Deductions and Reverse Mortgages
You may have tax deductions you can use if you have a FHA-insured Home Equity Conversion Mortgage (HECM). Tom Davison’s in-depth article on reverse mortgage’s tax opportunities and obligations for annual tax reporting. Davison includes information on the following topics: Loan Proceeds are Not Taxable Income Interest Deduction Mortgage Insurance Premium (MIP) Deduction Interest on Acquisition […]
New Math on Reverse Mortgages…
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 […]
Advisers Promoting Reverse Mortgages for Retirement Planning
According to a recent article in the Wall Street Journal, new safeguards have led many advisers to explore when and how to use reverse mortgages in financial plans. The repayment-deferred Home Equity Conversion Mortgage (HECM), FHA’s recently-revamped version of the former “reverse mortgage” is fast becoming a retiree’s best friend when endeavoring to extend cash […]
How Does the Line Of Credit for a Reverse Mortgage Work?
A mortgage’s effective rate is applied not just to the loan balance, but also to the overall principal limit, which grows throughout the duration of the loan. Research points to this growth as a valuable way reverse mortgages can contribute to a retirement income plan. Read the full article by Dr. Pfau on Forbes.com >
Reverse Mortgages With A Twist
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 […]
How Retirement Is Changing in America
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