| Home Equity Loan-reverse Mortgage-is There One In Your Future
Reverse mortgages have gotten a lot of publicity lately and will probably get a lot of press in the future as baby boomers near retirement age. What are they? Who can use one? Is there a reverse mortgage in your future? WHAT ARE REVERSE MORTGAGES A reverse mortgage is a home equity loan or line of credit that is secured by the equity in your home. You do not repay as long as you live in the home. The reason it is called a reverse mortgage is because it is the opposite of a regular home equity loan where you reduce debt and build up equity. In a reverse mortgage you reduce equity and build up debt. That is where the money comes from. WHO CAN USE REVERSE MORTGAGES Basically anyone who is over age 62, owns and lives in their own home and has paid off at least 60% of the loan can apply for a reverse mortgage.
Jack Naudi
I was all set to provide a glowing update to last year's column, one of the few in which I wrote about a specific product. Now, I'd say I've become more skeptical. A year ago, I wrote of the program: "It provides you with more money to invest in stocks and bonds." Well, that might be true in some cases. But in the vast majority of regular mortgages, it's not. Indeed, it's just the opposite. The program works as advertised only if you put more money into your home than into other investments.
But the Home Accelerator is dramatically different from a regular mortgage. In simplest terms, it's a lot like a home equity line of credit, but with a bit of a kick.
Under the program, your home equity line also is a bank account. You deposit checks into it, just as you would into a regular checking account.
Obama health plan points to tax increases
Presidential candidate Barack Obamas plan for universal health care for all Americans require $50 billion to $65 billion in new revenue, according to estimates released this morning by his campaign.
The campaign suggested tax increases for the wealthiest Americans may be the way Obama would pay for his plan. The campaign released estimates from the Urban/Brookings Tax Policy Center saying the money could be raised by restoring the top two personal income tax brackets and rates on dividends and capital gains to Clinton-era levels.
Obama will officially unveil his plan at 10:30 a.m. today at the University of Iowa.
Other highlights:
Obama will tell the crowd his plan would reduce the typical familys health-insurance premiums by $2,500 a year.
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