Posted on November 26, 2005 by Steve
USA Today, November 21st, 2005
A recent study by the National Council on the
Aging concluded that 13 million older homeowners are candidates for
reverse mortgages. That doesn’t mean you should run out and get one.
But if you’re eating franks and beans three times a week so you can pay
for your heart pills, a reverse mortgage could improve your standard of
living.
A reverse mortgage is a loan against your home
that doesn’t have to be repaid until you move, sell your home or die.
You can receive a lump sum, a line of credit, monthly payments or a
combination. To qualify, you must be 62 or older. If the home is owned
jointly, both owners must be at least 62.
The amount you can borrow is based on your
home’s value, current interest rates and your age. The older you are,
the larger the loan amount.
Read more…
Posted on November 26, 2005 by Steve
Originatortimes.com, November 24th, 2005
WASHINGTON,
D.C. – For a fifth consecutive year, lenders originated a record number
of federally insured reverse mortgages, and the volume of borrower
applications being processed is even higher, according to the National
Reverse Mortgage Lenders Association.
During the most recent federal fiscal
year, ending September 30, the Federal Housing Administration (an arm
of the Department of Housing and Urban Development), insured 43,131
Home Equity Conversion Mortgages (HECMs) compared to 37,829 the prior
year. HECMs account for 90 percent of all reverse mortgages made in the
U.S
Read more…
Posted on November 26, 2005 by Steve
The New York Times, November 24th, 2005
WASHINGTON, Mich. – Until last February, Mary Ellen Geist was the
archetypal career woman, a radio news anchor with a six-figure salary
and a suitcase always packed for the next adventure, whether a
third-world coup, a weekend of wine tasting or a job in a bigger market.
But now, Ms. Geist, 49, has a
life that would be unrecognizable to colleagues and friends in Los
Angeles, San Francisco and New York City. She has returned to her
family home near Detroit to care for her parents, one lost to dementia
and the other to sorrow.
Ms. Geist sleeps in the dormered bedroom
of her childhood and survives without urban amenities like white
balsamic vinegar. She starts her days reminding her father, Woody, a
sweet-tempered 78-year-old who once owned an auto parts company, how to
spoon cereal from his bowl.
Read more…
Posted on November 2, 2005 by Steve
Reality Times, November 1st, 2005
One of the great wonders of modern life is the ability to borrow — and borrow and borrow and, well, you get the idea.
I always tell folks there is no shortage of either lenders or
loans, the real question concerns borrower preferences. If a borrower
is sufficiently “motivated” then there are always loans to be had. Of
course, when there is sufficient motivation there are also borrowers to
be had, a thought which brings us to the subject of loan-to-value
ratios.
This may sound like a real snoozer, but LTV is a subject which
may soon haunt lots of people. Across the country there are now
incidental reports of falling home prices, especially in the upper
brackets. “Price changes” now seem to be more common in listing
notices, and by “price changes” no one means sellers are asking more.
Read more…
Posted on November 1, 2005 by Steve
The New York Times, October 30th, 2005
The New York Times provides a good overview of what is happening with Pensions in the US in this article.
- Why they are going away:
“For the U.A.W., Miller noted forlornly, “30 and Out” – 30 years to
retirement – became a rallying cry. Eventually, the union got what it
wanted, and workers who started on the assembly line after high school
found they could retire by their early 50′s. “These pensions were
created when we all used to work until age 70 and then poop out at 72,”
Miller told me. ‘Now if you live past 80, a not-uncommon demographic,
you’re going to be taking benefits for longer than you are working.
That social contract is under severe pressure.’”
- How public pensions are in worse shape and represent and even bigger problem for taxpayers than private pensions:
“According to Barclay’s Global Investors, if you use realistic
assumptions, the total underfunding in all public plans is on the order
of $460 billion. If this figure is even close to true, future taxpayers
will be hopelessly in hock to the police, firefighters and teachers of
the past.”
Read more…
Posted on November 1, 2005 by Steve
Pension plan troubles have been making the news again. United
Airlines recently reached a deal to offload its pension plans on the
Pension Benefit Guaranty Corporation. The plan may be nearly $10
billion dollars underfunded. Industry analysts fear that automobile
manufacturers’ pensions will follow the airlines into deep trouble.
Indeed, according to THE NEW YORK TIMES, “The federal government
contends that General Motors’ pension fund is $31 billion short of what
it owes its work force, according to closely held government data, a
figure in stark contrast to G.M.’s assurances that its pension plans
are “fully funded.” What is the problem with pensions? Find out about
the changing pension scene below.
According to a “Retirement Confidence Survey” conducted by the Employee Benefit Research Institute (EBRI) and the American Savings Education Council (ASEC),
many Americans are ill-informed about just how much money they will
need in retirement, and how to plan accordingly. Traditionally,
retirement experts have told us to think of retirement as a
“three-legged stool” comprised of personal savings, Social Security and
employer sponsored pensions. These days, the stability of all three
legs are being challenged – and some people are worried.
NOW
looks at how traditional pension plans are faring. Experts refer to
what we think of as “traditional” pensions as “defined benefit plans.”
Below you’ll find more information about these plans as well as about
other increasingly popular types of pension plans.
Read more…
