Don’t Fall for Misleading Reverse Mortgage Ad Claims

Elderly couple signed agreement

You may have seen ads trumpeting, “A Reverse Mortgage Can Provide The Financial Freedom You Need in Your Retirement” and thought, “Hey, that sounds like a great deal! But is it too good to be true? Is there a catch?”

Well, yeah. Most reverse mortgage ads don’t show the full picture, leaving seniors confused about how they really work, according to a recent study by the Consumer Financial Protection Bureau.

Here’s the deal: A reverse mortgage is a special type of loan available to homeowners 62 years or older that allows them to convert their home equity into cash. The balance of these loans is due, with interest, when the borrower dies, moves, or sells the house.

So, whether you’re intrigued for yourself or watching out for an older loved one, read on — we’ll walk you through the most common misunderstandings about reverse mortgages, what they really are, and whether they make sense for your situation.

What seniors don’t understand about reverse mortgages

A reverse mortgage is a loan, not a benefit. Many seniors don’t realize this, according to the CFPB study. That’s because many ads imply financial security for the rest of a consumer’s life. Some seniors even think that a reverse mortgage will ensure that they can stay in their house forever. But borrowers with a reverse mortgage are still responsible for paying property taxes, homeowner’s insurance, and property maintenance. Failing to meet these requirements can trigger a loan default that results in foreclosure. Many reverse mortgage ads fail to mention such requirements. A reverse mortgage is not offered by the government. Ads often leave older homeowners with the false impression that reverse mortgages are a risk-free government benefit. Consumers often believe that the federal government provides consumer protections for reverse mortgages — which it does not, according to the CFPB study. Difficult-to-read fine print. Some consumers don’t pick up on key aspects of the loan because the loan requirements are often buried in the fine print — if they are mentioned at all. Many reverse mortgage ads reviewed by the CFPB did not mention critical information such as interest rates, repayment terms, and other requirements.

So, as you can see, it’s important to educate yourself on how reverse mortgages really work. They’re fairly complicated, and you need to understand the terms and risks. Don’t get us wrong, we’re not opposed to reverse mortgages. For some people, they’re a perfect option. Like picking your mortgage, it all depends on what you need and your financial situation.

Reasons to get a reverse mortgage

You can’t qualify for a home equity loan or line of credit. Reverse mortgages have much looser credit and income requirements than other equity loans (although income requirements have been tightened). For a borrower without the means to obtain other lines of credit and who needs cash flow, a reverse mortgage can be the best option. You have sporadic, expensive costs, like medical bills. Mortgage advisor Casey Fleming, author of “The Loan Guide: How to Get the Best Possible Mortgage,” says he worked with a married couple with a small home equity line of credit (HELOC) who needed more cash flow after the husband had a stroke. They took out a reverse mortgage line of credit to pay off the HELOC. When figuring out how much of a home financing payment you really can afford on a monthly basis, will not fail to factor in all the additional fees of possessing a home. You will have homeowner’s insurance to consider, along with neighborhood association fees. In case you have previously rented, you could also be unfamiliar with covering landscaping and yard care, and also maintenance costs.

If you are a retired person in the process to getting a home financing, obtain a 30 year fixed loan if at all possible. Even though your own home may do not be repaid with your lifetime, your payments is going to be lower. Since you will be living with a fixed income, it is vital that your instalments stay as little as possible and do not change.Then they dipped into the reverse mortgage credit line to pay off bills as needed. You’re older than the minimum eligible age. The more equity and the older you are, the more money you can draw from a reverse mortgage. You’re eligible to get a reverse mortgage at 62, but the longer you wait, the more money you’ll have access to and the less likely you are to run out of equity. You don’t have kids or no one wants the house. Many people go into a reverse mortgage anticipating the bank will foreclose on the home when they are gone, instead of passing it onto the next generation.

Reasons not to get a reverse mortgage

You’re too young. The average life expectancy is 81 years for women and 76 years for men. You don’t want to outlive your funds and be unable to pay back the loan. Plan with a financial planner to set aside funds for medical bills and living expenses. You can cut costs elsewhere. Remember, it’s better to live within your means than to borrow. If you live in a big house in an area with high property taxes, it could make more sense to sell and reverse mortgage in texas downsize. A HELOC makes more sense. A reverse mortgage is expensive. The more equity you take out and the more your home is worth, the more expensive it gets. This includes an upfront origination fee of up to $6,000, an upfront mortgage insurance fee of 0.5% to 2.5%, monthly mortgage insurance equal to 1.25% of the outstanding loan, a one-time fee for mandatory counseling ( about $125), monthly servicing costs (about $35), as well as refinancing closing costs. Home equity lines of credit cost significantly less. Bear in mind that HELOCs are also open-ended loans, meaning lenders can make money by charging a higher interest rate, so shop around. If you want to pass on the home. Paying back a reverse mortgage to keep the home of a parent can be a daunting task. Repaying the loan with interest can make it impossible for the inheritor to save the home.

We said it before, and we’ll say it again: Reverse mortgages are complex! More complex than you can fully understand from a 30-second commercial. Before signing off on one, consult with a reverse mortgage counselor to understand and compare costs, payment options, and fees associated with the loan. Don’t let your lender choose one for you. To find a government-approved counselor, visit http://www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm or call 800-569-4287.

The Things You Need To Know About Leadership

Do you want to build your business? If you do, try working on your leadership skills. There is always room for improvement, even for the best leaders, and the following article will show you how this can be done. Read on and get educated on leadership.

A good leader, or manager, will go out of his or her way to get to know employees better. Not just about work-related topics, but about their outside activities, family and interests. Employees appreciate it when their leaders acknowledge them in ways that don’t pertain to work. This makes the relationship a little more personal.

Sincerity plays a major part in leadership. The people that you are leading may come to you with problems. These problems should be listened to and addressed. It may be easy to brush off a problem when it’s not the most important matter. Your team will feel better about you being the leader if you can sincerely listen to and solve their problems.

Don’t make the mistake of ordering people around. That is not true leadership. The key to true leadership is to inspire those around you. You need to help them find their own voices, so that they can go on to lead others. The entire journey they take with you is about their ability to know themselves better.

Once you become a leader, do not make the mistake of believing your job is done. While you may have won the first part of the battle, there is a lot more to come. You have to work hard every day to show people that you deserve to be where you are.

Befriend a trustworthy person in the same business field. This person will be invaluable when you have an idea and you want to make sure it is actually viable. You will, of course, have to be available to your “business buddy,” as well, as this sort of relationship is a two-way street.

Admit when you make a bad decision. All good leaders will eventually make bad decisions. Great leaders take ownership of errors and openly communicate them to their team. It will show them that you are human, just as they are. It might not look like a good leadership trait, but it does breed serious loyalty when done right.

Don’t manage, lead. There’s a big difference between a manager and a leader. Managers maximize productivity and work on the day to day. Leaders inspire and raise the company up with vision. It’s big picture stuff. If you spend too much time managing, you’ll never be able to show yourself as a leader to your company.

Do not be afraid to jump in and help. This is much easier if you work on site with your team, but is possible from afar if you are creative. If any person from your team needs help, jump in and give them a hand. You may learn a lot from the experience.

As a leader, you probably have certain goals, ethics and values that help to form your leadership model. These are important qualities of a good leader. It is a good idea to write these things down, and then share them with your employees, or team members. This way, they know what you are about, and what is expected of them.

Now, you have some essential information about being a great leader. Turn to these things when you’re trying to find out what you need to be doing and share these tips with other people as well. Doing so will help your company thrive for yourself and your employees.

Crucial Advice For Anyone Investing In The Stock Market

Learning how to invest in the stock market is a useful skill for anyone, as it can provide a rainy day fund or an entirely new career! Being flexible, determined and good at research, can help anyone to do well. Read this article for more tips on how to be successful with investments!

Understand the risk involved in the stock market. If you are used to investing in mutual funds, understand that individual stock investing is a greater risk. If you aren’t the type of person who is prepared to take a risk, stick with companies that have a good financial standing, and that have shown excellent stock performance in the past.

Many people who invest in stocks make the mistake of relying too strongly on past performance when deciding which stocks to purchase. While prior performance is a very good indicator of how a stock will perform in the future. You should make certain to investigate what the future plans of the company are. It is important to consider how they plan to increase revenue and profits, along with what they plan to do to overcome the challenges that they currently face.

It is important that you never think of investing as a hobby. It is really an extremely competitive business, and if you keep that in mind you will be able to have a more helpful outlook. You need to deeply understand your profits and losses along with the companies you are investing in.

Don’t let your emotions play a part in your investments. Remember that this is a business and you’re in this to make money. You can’t let yourself make bad decisions that are solely based on your emotions. Learn to separate your emotions from your decision making so that you can have a clear mind.

If you think you have what it takes to invest on your own, think about using a discount online broker. Online brokers cost much less than regular brokers, so if you are comfortable doing your own research, give online trading a shot. Since your main goal is to make a profit, having a low operating cost is ideal.

Use a discount brokerage rather than a full service firm for your trading of stocks, bonds and mutual funds, and keep more of your money. Discount brokerages usually charge lower fees and commissions. There is no point in paying unnecessary fees. The only downside is that a discount brokerage will not give you advice about what to buy and sell. You must make those determinations on your own.

Know what your capabilities are and stay somewhat within that. When investing by yourself, whether through an online or discount brokerage, you should only search for businesses that you have some understanding about. You probably have good judgement about companies in an industry you’ve worked in, but maybe not for companies well outside your area of expertise. Professional advice is necessary in some cases.

As said in the beginning of this article, anyone can learn how to invest in the stock market with determination and flexibility. Buying high, selling low and remaining patient, are all important tips. Remember the advice in this article, so that you can profit from investments in the stock market today!

More Resources:

Investopedia

Reverse Mortgage Texas

Forbes on Investing

Advantages and disadvantages of a computer-assisted language learning approach – Santa Barbara ESL

Represented in all levels of education, English Language Learners (ELLs) have a variety needs, apart from simply learning the curriculum. In addition to learning grade level content, ELLs must also learn a second language: English. As the population of ELLs increases, so does the diversity associated with this student group. Learning styles, preferences, and prior education experiences all contribute to ELLs unique cultural identity.

Considering this expansive diversity, ESL teachers need to build their arsenal of English-teaching strategies. One such addition to an ESL teacher’s repertoire should be CALL, or computer-assisted language learning. As with any approach, there are advantages and disadvantages. Understanding both can help an ESL teacher make an educated decision as to whether CALL will work for their individual group of students.

Benefits to using a CALL approach

With the diverse range of English Language Learners, a major benefit to computer-assisted language learning is that it can be narrowed to a specific skill or task based on students’ needs or interests (Kumaresan, 2012). Another advantage to incorporating CALL is its flexibility and accessibility. Students can continue their learning outside the traditional classroom setting by logging on to the internet, which can be done at home, in a neighborhood library, or at a local coffee house. Computer-assisted language learning also provides a level of entertainment by marrying oral and written language with visual cues.

Drawbacks to using a CALL approach

As with most anything, there are drawbacks to computer-assisted language learning. One such demerit is computer illiteracy. If ESL students do not possess a basic level of computer literacy, the CALL approach might prove detrimental to their development of the English language. Another disadvantage of CALL would be the lack of face-to-face time. Receiving support and direction from an instructor or peers is a vital aspect of language learning. An ESL program devoid of authentic opportunities for interacting with others could be viewed as unfavorable.

To make learning English meaningful, teachers must find ways to connect the lesson or skill to the student. Whether through authentic, face-to-face learning or via a CALL approach depends on each learning situation. Knowing the advantages and disadvantages of adopting a computer-assisted language learning program will help teachers make the best choice for their students.

Reference:

Kumaresan, K., Balamurugan, K., & Thirunavukkarasu, S. (2012). COMPUTER ASSISTED LANGUAGE LEARNING. International Journal of Management Research and Reviews, 2(12), 2083-2086. Retrieved from http://search.proquest.com/docview/1415607171?accountid=458

http://www.examiner.com/article/advantages-and-disadvantages-of-a-computer-assisted-language-learning-approach

Strayer Education Inc (STRA.OQ) Quote| Reuters.com

Strayer Education, Inc. provides post-secondary education services. The Company offers a range of academic programs through its wholly owned subsidiary Strayer University, Inc. (the University), both in classroom courses and online via the Internet. Strayer University is an institution of higher learning that offers undergraduat… (more)

http://www.reuters.com/finance/stocks/overview?symbol=STRA.OQ