When to Use the Reverse Mortage as a Solution

By Spooni Vanrock

Reverse mortgages are becoming mainstream lately. Perhaps it's Robert Wagner, or maybe its life circumstance creeping up on today's seniors forcing them to use the reverse mortgage.

It is a viable financial tool, and if wielded properly, can be used as a powerful lever to solve financial obstacles.

That being said, it has shortcomings and is not the best tool for everyone. I'm often asked by my prospective customers, "Do you think this is the right thing to do?"

I'm flattered they trust me enough to ask the question. Don't forget I make money if they go forward with a reverse mortgage and zero if they don't. There may be a conflict of interest there somewhere.

However, I'm a pretty honest cowboy and I answer back, "How long do you plan on staying in the home?" This is the most important thing to know.

I want to know because short reverse mortgages should be used only in dire emergencies. The cost of getting the loan for a short period is very high due to the closing costs involved.

The answer I like to hear is, "I'll be in the home until they carry me out." As a borrower stays in the home longer the cost of the loan continues to decrease as the years go on.

The very minimum acceptable time period, outside of an emergency situation, is three years.

Living in the house for a term shorter than 3 yrs makes the loan quite pricey. I would strongly look at any and all other financial options in this case.

Another point is to match the relationship of the borrower's income to the problem the customer is trying to remedy.

For instance, some incomes can change to catch up to and solve an economic troublespot. Fixed incomes, on the other hand, usuallly cannot. The duration of the financial issue plays a role as well.

Here is your typical reverse mortgage customer... He plans on staying in the home at 3 years or longer. His income is fixed and can't change to meet his financial needs. The reverse mortgage makes sense for this man.

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Discover the biggest mistakes to make for the Texas reverse mortgage here. A wealth of information and many Texas reverse mortgage answers are here.

Reverse Mortgage Loan Amount Based on Three Factors

By Eversemort Vanrock

As of last month the new law went into effect allowing reverse mortgage companies to loan based upon the new higher FHA reverse mortgage limits.

The new limits in most parts of the country are $417,000. This is an increase by as much as two times in many of these same areas. So, what does this mean?

One could liken the lending limit to the actual value of a home and as a starting point to determine how much money the lender will actually allow the senior to borrow. If the value of the home exceeds the lending limit ($417,000), the borrower receives no additional benefit.

Don't forget, the lender is using the house and it's equity as security for the mortgage. The value of the home, or the FHA insurable limit, is the first and most important determination as to how much a borrower can receive.

Interest rates and age of the youngest senior who's name will be attached to mortgage are the other determing factors.

Age makes sense right? Let's face it, reverse mortgage lenders are using actuarial tables, just like insurance companies, to determine how long the borrower will live in the house.

The great fear is one day more will be owed than the home is worth. Clearly if the tables tell a mortgage company the borrower is going to live 4 years as opposed to 14, they will lend the older borrower far more than the younger.

Interest rates are thought of in a similar manner. The greater the interest rate, the quicker the accrual of interest will eat away at the security for the mortgage. Therefore, lenders lend more to prospective borrowers as rates go down than the vice versa.

People often say to me, "What percentage of my value am I going to get?" There is no percentage. All three variables need to be input into the formula and out will come the number.

For a rough guestimate, borrowers aged 90, would receive roughly seventy-five percent of the home's value or loan limits (the lesser of the two). The young sixty two year old would qualify at about fifty percent.

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Useful Hints On Retirement

By Don Pedro

Before someone goes to retirement he needs some planning about his life after retirement. It will make you prepared to cope with the changes associated with retirement.

For those who have stayed busy throughout their respective career find it really difficult to cope with the changes that come with the retirement. To remove the monotony from that mind, they can indulge in whatever hobbies they may have.

If you don't find a way out of the situation you can go consult with some professionals who will give you some nice tips to utilize your time and energy. The support that a counselor provides to the retiree can prove to be of much help. Therefore one should seek professional life coaches to guide him during this time.

Always take the transition of life from the best point of view. It's the perfect time to do those things that you never got a chance to do in your busy days.

Some people prefer keeping busy with their hobbies like gardening, writing, fishing or site seeing. A hobby is something that can keep the retiree ever fresh. Gardening will not only help the person feel refreshed but it can also be a source of income. A retired person definitely feels more secured and confident and lots of problems are taken care of if he is financially self-sufficient.

Some of the retirees spend rather gloomy days after the retirement mainly because they fail to make proper plans for those days. One should plan map out the to-does for that part of life. This may include volunteering for non government organizations or charities.

Retirement gives you lots of time and the much needed rest. Now you have enough time to look back and take care of those things you missed or lacked throughout the life. You can choose to take some courses in local schools or other institutes that attracts you the most.

Retirement from a job doesn't indicate you are retiring from your life. Rather the experience they retirees have can help the society and the mankind greatly. They are the most experienced people among us who have seen a lot in their lives. So one can always get involved in social welfare activities, charitable jobs and give the world the best out of them during this post retirement life.

About the Author:

Don Pedro focuses on insightful articles about Retirement Loan Calculator , as well as Retirement Spending Calculator on the resource site at http://www.retirementHangout.com

The Importance of Knowing Your Tax Deduction Limits

By Harold Guy

There are many reasons why people should know the tax deduction limits when they claim IRS deductions. Most people would say that the main reason is obviously so that they will have to pay the least amount of taxes to the IRS. Usually, the more tax deductions they are able to claim, the less taxes they will have to pay and most people want to pay as little taxes as possible.

Some people who are new to tax filing and tax planning may not even know what IRS deductions are, let alone what the tax deduction limits are. IRS deductions are tax deductions that the IRS allows taxpayers to take for qualified expenses. These expenses are called tax deductible expenses and they are subtracted from the gross income that the IRS uses to calculate taxes that a taxpayer owe them.

Most of the time, taxpayers want to claim as many IRS deductions as they can and knowing the tax deduction limits will help them. However, not everyone can claim tax deductions and not every expenses are tax deductible. Therefore, it is important to learn the tax codes to know what are tax deductible and what are not so that you can claim the most IRS tax deductions possible.

The IRS deductions are not to be confused with tax credit. The same goes for tax deduction limits versus tax credit limits. They are different. Most people prefer tax credits because tax credits give taxpayers dollars into their pockets whereas tax deductions just lower taxable income. If there is no income, then there is not use lowering it but tax credits may work even if there is no income to report.

Choosing the right type of IRS deductions can affect how much taxes a taxpayer owes the IRS. The tax deduction limits do not matter so much if the taxpayer chooses to claim the standard deduction. However, not everyone can claim the standard deduction. If they can, though, it is the easier option of the two and all you have to do is check the box on your tax return form that says 'standard deduction'.

If you are not qualified to take the standard IRS deductions, you can claim the itemized deductions. If you claim itemized deductions, it is very important that you know the tax deduction limits. Each itemized deductible expense will have its own limit that you cannot exceed. It is also good to know what the tax deduction limits are so that you can figure out if to claim itemized deductions or take the standard deductions.

The bottom line is that by knowing the tax deduction limits, taxpayers can make an informed decision about whether to claim the standard deduction or to itemize his or her tax deductions if he or she is eligible to claim both. There are many books, IRS publications and websites that will give details of what the tax deduction limits are for different tax deductions.

About the Author:

Searching for more information about your tax deduction limits? Swing by the IRS deductions Organization website for answers to all of your various tax questions along with free resources and tools that you can use at tax time.

Consolidation Loan Choices Make Choosing Easier

By Daniel Atolben

Debt consolidation loans were created solely as a means for putting all the debt together, or consolidating it, and lump sum loan is made instead of separate payments to individual creditors. Instead, the bank takes your debt total, and through many different types of loans, can, with the appropriate credit, aid in the immediate repayment of all creditors. The bank pays off the debts, and you pay the bank.

A very good reason to do this is when the interest rate on the loan is a fixed rate that is less than the typically higher rate charged by credit card companies and other creditors, especially if you have recently begun to pay your credit card bills later and later and the fees for such activity are beginning to mount.

A possible consideration for debt consolidation is a straight loan. This is equivalent to a home or car loan, but with no collateral. You are simply borrowing a set amount to pay a specific debt. Again, the rate should be noticeably lower than the interest rate being paid to the credit card companies. Not everyone who applies for a straight loan will qualify. There are serious guidelines to protect the bank from someone who may default on a loan that the bank has no way of recouping without your cooperation. Usually this type of loan is reserved for consumers with the highest credit rates.

Home equity loans are also valuable to a consumer interested in debt consolidation. If your home is worth more than the amount of the loan you are paying for it, the difference may be borrowed from the bank and used to pay creditors. These loans are restricted by the amount of equity in the home, and dependent upon good standing in the first mortgage. Often these loans are separate from the first home mortgage, and the rate may or may not be the same for each loan. As long as the interest rate is lower in the equity loan than the credit card rate, a home equity loan can be a good decision.

A total home refinance is also a possibility. If your home has been paid down considerably or increased in value quickly, and if the rates have gone down enough to justify the fees for refinancing, an whole new home mortgage may be established, with the extra debt added in to the value of the loan.

While escaping from a debt ridden situation can seem like a struggle, debt consolidation loans can be invaluable to a consumer who would like to reduce the number of payments that they make and interest that they pay per month. Consolidation loans stream line the payment process, no matter which method you choose.

About the Author:

Daniel Atolben frequently writes news on themes dealing with how to negotiate debt settlement yourself. You might see his work on how to negotiate debt settlement yourself and how to negotiate debt here.

Straight Loans Useful in Debt Consolidation and Repayment

By Daniel Atolben

Debt consolidation loans were created solely as a means for putting all the debt together, or consolidating it, and lump sum loan is made instead of separate payments to individual creditors. Instead, the bank takes your debt total, and through many different types of loans, can, with the appropriate credit, aid in the immediate repayment of all creditors. The bank pays off the debts, and you pay the bank.

A very good reason to do this is when the interest rate on the loan is a fixed rate that is less than the typically higher rate charged by credit card companies and other creditors, especially if you have recently begun to pay your credit card bills later and later and the fees for such activity are beginning to mount.

A possible consideration for debt consolidation is a straight loan. This is equivalent to a home or car loan, but with no collateral. You are simply borrowing a set amount to pay a specific debt. Again, the rate should be noticeably lower than the interest rate being paid to the credit card companies. Not everyone who applies for a straight loan will qualify. There are serious guidelines to protect the bank from someone who may default on a loan that the bank has no way of recouping without your cooperation. Usually this type of loan is reserved for consumers with the highest credit rates.

Home equity loans are also valuable to a consumer interested in debt consolidation. If your home is worth more than the amount of the loan you are paying for it, the difference may be borrowed from the bank and used to pay creditors. These loans are restricted by the amount of equity in the home, and dependent upon good standing in the first mortgage. Often these loans are separate from the first home mortgage, and the rate may or may not be the same for each loan. As long as the interest rate is lower in the equity loan than the credit card rate, a home equity loan can be a good decision.

A total home refinance is also a possibility. If your home has been paid down considerably or increased in value quickly, and if the rates have gone down enough to justify the fees for refinancing, an whole new home mortgage may be established, with the extra debt added in to the value of the loan.

While escaping from a debt ridden situation can seem like a struggle, debt consolidation loans can be invaluable to a consumer who would like to reduce the number of payments that they make and interest that they pay per month. Consolidation loans stream line the payment process, no matter which method you choose.

About the Author:

Daniel Atolben writes essentially for http://www.debtania.com , a web publication with topics around how to negotiate debt settlement yourself and how to negotiate a settlement within creditors. His abstracts on how to negotiate debt can be found on his website .

How Prepaid Credit Cards Work

By Gray Rollins

One thing that we all find very difficult to keep in perfect state is the credit. In order to get credit, you have to be old enough and financially stable too. If you falter in making payments at the right time, your image will get tarnished and you may disqualify getting the credit again. So you have to be very careful in keeping the credit perfect if you really want to enjoy all benefits provided with this credit.

Credit card is the major factor influencing your credit. You can build your credit with their help but they also have the power to take your credit away. That makes the prepaid cards a popular choice for people who want credit. They enable you to change the credit score if you need any changes.

If you really don't want to misuse your credit, then a prepaid credit card may be ideal for you. The prepaid credit cards are generally affiliated with some reputed credit card companies. Thus you will not have to be concerned about it being legitimate or being good. Still it is always better to know more about that company before you apply for this card. With the right card, you will be able to build the credit backup for yourself. Don't take any hasty decision, do a proper search and study before going for a credit card if you are looking for maximum gains.

With a prepaid card, you don't have to worry too much about controlling your spending. Since you put the money in your card so you know how much you can spend. You will not be allowed to spend more that what you have put in your account. So you will not have to worry about crossing your credit limit at any time. So will not have to pay any over the limit fees and your credit will not be at any kind of risk.

While there are many great advantages to having this type of credit card, there are things that you need to take into consideration before you decide to get one. Even though this is a prepaid card, there are still rules and guidelines that you need to abide by such as standard fees. Some companies will charge you a fee when you put money on the card and when you take money off the card. You may also get a fee assessed if you do not keep a certain amount of money on the card.

If you desire to restrict your spending and improve your credit then a prepaid card is just ideal for you. You will definitely have to put in a little effort to find out the best company for you. Find out if they offer schemes to increase your overall credit score or not. Also find out the fees they are going to charge for all your transactions and if they will charge for putting money on card taking it off.

You should always remember your credit limit if you want to make best use of your card. You must also be aware of the minimum balance that you need to maintain on your card and also the amount that you are allowed to take off each day from your card. If you consider all these points, you will be able to take the right decision about the choice of your prepaid credit card.

For all people who have some kind of credit problems, the prepaid credit card is a wonderful option. With this card you will not only get rid of such problems but it will also help you in providing many opportunities for development. You will not have to worry as far as your credit is concerned and you will move ahead to a better life.

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Get our number one recommended prepaid credit card from PrepaidCreditCardDirect.com

Platinum Credit Cards Accepted Worldwide

By Gray Rollins

Platinum credit cards have greater supremacy when it comes to credit cards' benefits and privileges, much better than the Gold or Standard credit cards. The applicant for this card should have excessive figures of income to be qualified. Aside from the benefits and great opportunities, the status associated with Platinum credit cards is another reason why people prefer this card.

Among the platinum credit cards in the circulation, the American Express Platinum card is simply the best card of all with worldwide acceptance. It offers the greatest benefits a credit card can serve. If your credit score or credit history is good enough, you can even reach the credit limit of up to $100,000. This card may seem to be high in value, but you will eventually earn in return this value because, as long as you maintain a good credit score, you can earn 1.5 reward points for each of your purchases.

MasterCard platinum is also a credit card with great value. It is also accepted anywhere in the country and in other countries. With a reasonable percentage rate of interests and will maintain its rate as long as payments are made on time.

This platinum credit card is perfect for individual who are earning high income to afford the monthly payment of the balance due each month. Paying only the minimum of the outstanding balance of failure to pay on time will cause the interest rate to go up to 35%.

The Discover More Platinum credit card is another card that offers convenience through its high spending limits, zero annual fees, attractive introductory APR for purchases and balance transfers for 12 months, and some more rebates on purchases and cash back bonuses. Credit history and details can be accessed through online account access.

Platinum credit card features wider range of benefits and opportunities than the silver or gold credit cards. It extends additional services such as concierge services, travel services, and purchases on high class establishments. Once you met the qualifications of being a high earning individual with high credit score, you can avail this Platinum credit card and experience its benefits and privileges.

Platinum credit cards are available for businesses. They have several options that are standard with the card so you can save money when shopping for your business as well. The membership rewards are similar to the regular credit card for personal use. There are companies that are affiliated with the credit card company so you can save from 3 to 25% on purchases you make with these companies. Some of the platinum credit cards for business offer a 0% APR for the first year and there are some with no annual fee.

Platinum shopping card is also a form of credit card. Unlike the regular credit card which can be used for dining, travel, or other services, platinum shopping card is only intended for purchases of merchandise or just for shopping purposes. The credit transactions are still reported to the credit bureau for the credit score, so be sure to make prompt payments and take care of your credit history.

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All Platinum Cards are not created equal. In fact, some are just downright lowsy. Get the finest Platinum Card available by applying for the American Express Platinum Card today and you'll receive 25,000 points to get started.

Credit Repair Help - It's Not As Hard As You Think!

By Mark Alison

It's really hard to go and live in this world with bad credit. People everywhere are in debt and in need of help. What are you supposed to do when you want to make that big purchase and the loan gets denied?

Credit repair can be done, but not overnight. You must be patient and keep your spending in check. There are a few things that you can do to repair your damaged credit but you must be patient as you follow these steps.

First thing to do, must do is create a budget. This will allow you to know how much money each month you can spend on your debts. It's best if you document for one month your spending habits. You never know how much you spend eating out and buying fancy coffees.

Equifax, Experian, and Trans Union are the three credit reporting agencies that report to FICO. FICO is who keeps your credit score and reports it to the banks. You should get a credit report from all three agencies. Your bank will give you a free report every year if you ask for one; otherwise you can find an online solution.

You need to contact the creditors that you owe. This is so you can try and negotiate a payment plan. You can haggle with them about interest and monthly payments. Then when you get an agreement, have them send you the agreement in writing.

Now you need to pay off your credit card debts. Cut up the cards and start paying them off. Close all the accounts you have except your three oldest ones. Credit scores are based on history of accounts. Even if these lines of credit are opened, you don't need to use them unless it's an emergency.

On time payments is the key here. You must be sure that you honor your promise to pays and your payment plans. If you are going to be late or have trouble, you need to call them up and let them know. Do everything you can do avoid bankrupts. You can choose to do a loan consolidation, you might need a co-signer.

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Click Here For More Tips On Credit Repair!

Variable Rate vs Fixed Rate Student Loans

By William Blake

Changes in Student Loan Structure

As of July 1, 2006 Stafford loans became fixed rate loans. This was not a new idea. Years ago all Stafford loans had a fixed interest rate. In time the structure changed and they became variable rate loans. Now they have again taken their original structure.

Some lenders make up for what they loose in interest rates by charging fees. In general 3% fees charged on a loan is the same as a point of interest. Therefore, if they keep to the restrictions on the interest rate yet charge you a loan origination fee or loan insurance then they recover what they are missing in interest payments right up front. Some lenders are willing to extend credit and waive the customary fees.

Interest Rate Increases

The interest rate on loans has risen greatly over the past few years. The PLUS student loan has gone up from 6% to 8.5%. That makes this loan quite a bit more expensive than before. 2.5% interest increase means that you loan is going to cost you hundreds of dollars more a year than it would at the lower interest rate.

For exact amounts, per month, run sample scenarios using a loan calculator, such as that at http://www.bankrate.com/brm/mortgage-calculator.asp

The Future

Financial advisors have a difficult time trying to determine where interest rates are going. It is a good guess at best. There is really no way to be certain how much your interest rate will vary over time. For students and their parents seeking student loans their only option is to base their choices on what the financial advisors are saying and hope for the best.

Follow The Leaders

You can visit Yahoo Finance or other financial websites to see what the experts are saying about interest rates. It is a difficult guess for them and an impossible guess for the average individual. Therefore the best bet is to stick with the experts and follow their lead.

Looking at the 30-year Treasury bill, for example, shows two things: what the government is offering to sell debt for projected out over 30 years, and what the buyers of that debt are willing to pay. As that rate varies, most other long-term rates, such as student loan rates, will vary similarly (though not always exactly).

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Are debt consolidation non profit companies the best way to handle consolidation? Maybe, but not always. Find out why at the Inside Debt Consolidation website

How To Get Online Loans

By Dave Davis

If you need to get your hands on some money fast, and don't have the time to gather loads of paperwork, online loans may be a great solution for you. They can help you to secure some funds now, even if you don't get paid for a few weeks. If you need cash for the holidays or for anything else, finding a loan online may be a big help.

Online loans usually work just how you would think. You apply online through a secure service, and provide the lender with all of your personal information. They will usually ask if you have a job and you will need to provide your social security number for identity verification. While some lenders can provide instant approval, most services will take a few hours to make a decision.

If you're approved, most online lenders will notify you via email. Once approved, the money is generally direct deposited into your checking or savings account. You will usually get the money the day after you're approved.

When looking for the best lending institution for your online loan, you'll want to check out a few things. First of all, what kind of personal information are they asking for? Second of all, is their application website completely secure? In most cases, you will need to provide your social security number and perhaps your driver's license number. This is personal information that if retrieved by the wrong hands could really damage your credit score and identity in general.

Make sure you that look for plenty of information online before you fill out an application. You don't want to be giving your social security number out to just anyone. People should say good things about the company you're considering and if they aren't you should find someone else. If there isn't any documentation about that company you're considering, you should also find someone else.

They should also state on their website what type of security or encryption is used to make sure the information you provide is not captured anywhere else on the web. As long as the lending source is using a secure website, you shouldn't have any problems and will have your hands on the needed cash in no time.

About the Author:

Dave is an educator about personal online loans and has helped hundreds of people to find unsecured personal loans. You can find out more about loans by visiting his site.

Credit Cards For People With Bad Credit

By Gray Rollins

When you have had financial difficulties in the past, particularly credit card debt, it can be nearly impossible to get a credit card. It's a difficult position; there are many things which you can't do without a credit card.

In fact, you cannot reserve a hotel room, buy anything online, or even rent a car without a credit card. It's getting harder every day to get by without having a credit card. There are entire portions of the economy which are closed to people without credit cards - not having one can make you feel like you are less valued as a member of society.

People with bad credit do still have a few options open to them. Even with poor credit, there are ways to get a credit card. While these cards come with some larger fees and interest rates attached, they can help you to rebuild your credit and let you participate more fully in daily life.

If your credit history is less than perfect, then there are cards available from some credit card companies which work like traditional credit cards, but have higher interest rates and annual fees than an ordinary card. These extra costs can be well worth it when trying to reestablish a good credit history and have the conveniences offered by having a credit card.

Another option for people with bad credit who want to get a credit card is a secured credit card. You will have to put down a deposit in order to secure the card (this is usually a few hundred dollars) and these cards will also usually have a low limit on spending, but they can help to build your credit rating and can be used just like a traditional credit card.

Prepaid credit cards can also work well for people with poor credit histories - these function just like any other credit card, but are associated with an account which you need to deposit money into before you can use it. Since you cannot spend more than you have deposited, you cannot get yourself in debt using these cards; they are a good choice for people who want to rein in their spending.

Prepaid credit cards let you buy online, rent cars and do all of the other things which a credit card is necessary for.

When you find yourself with bad credit, it can be a difficult situation. Don't despair though - these credit cards for bad credit can help you to reestablish your good credit and demonstrate your trustworthiness to lenders again. Just remember to use them with care!

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Get our top recommended credit cards for bad credit at CreditCard4BadCredit.org.