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The economic downturn has taken its toll on many American households and especially on retirees. In fact, one study from Wider Opportunities for Women indicates that more than half of older households have incomes that don’t cover their basic living expenses. To help, many baby boomers are turning to the equity they’ve built up in their homes to help by... Read Full Article
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Explanation of Terms: 1. Statement Date: The time period that the statement represents. In the sample statement, it is displaying all of the loan activity that occurred during the month of October. 2. Payment Plan: This is the current payment plan type that has been selected. In the sample statement, the borrower selected a “Line of Credit” payment plan option.... Read Full Article
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How would capital gains tax and California’s Proposition 13 affect my ability to get a reverse mortgage for purchase? Prop 13 and the Reverse Mortgage for Purchase A Home Equity Conversion Mortgage (HECM) for Purchase, sometimes called an “H4P,” is a product that allows a borrower that’s at least 62 years of age to take out a reverse mortgage in... Read Full Article
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You may think you understand reverse mortgages—and you probably do. They are, simply put, a type of mortgage that allows you to receive payments from your home equity rather than make them. It’s a negatively amortizing loan, meaning the balance grows over time, instead of falling. But there are some benefits that borrowers might not consider initially, that give reverse... Read Full Article
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Similar to a conventional mortgage, some of the costs associated with getting a reverse mortgage are tax deductible, as are any interest payments a borrower might make. For example, reverse mortgage origination fees and any broker fees can be claimed, says Joe Diaz, owner of American Essential Services, a tax preparation company located in Kissimmee, Fla. And, he continues, if... Read Full Article
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You can be forgiven for not knowing exactly how tax reform will affect reverse mortgages -- after all, with the legislation itself passed hastily to capitalize on rare consensus among Congressional Republicans; accountants and other financial professionals will likely be busy sorting out the implications all the way through tax day and beyond. For many homeowners, the disappearance... Read Full Article
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One of the most important benefits that reverse mortgage borrowers receive at closing is the freedom of no longer having to make required monthly mortgage payments to their lender. It is this feature of the reverse mortgage product that makes it so unique - and as such - so difficult for those outside of our industry to comprehend and understand!... Read Full Article
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Oregon reverse mortgage borrowers made headlines recently when they were suddenly cut from a tax deferral program many had been enrolled in for several years or more. Previously, reverse mortgage borrowers in Oregon were eligible for the state’s senior property tax deferral program—a program that allows people over the age of 65 to defer their property taxes over time while... Read Full Article