As Seen on TV: Reverse-Mortgage Pitch is Legit
Reverse loans let seniors convert equity to cash, but at a price.
In 1978, James Garner won the People's Choice Award for Favorite Male TV Performer. More recently, you may have seen him in a new TV role -- as spokesman for reverse-mortgage lender Financial Freedom.
Reverse mortgages let homeowners 62 and older convert equity to cash, which needn't be repaid as long as they live in the home. New regulations raise the loan limit to $625,500. And starting this year, seniors can use loan proceeds to buy a new home. At a time when retirement savers are vexed by the vagaries of the stock market and the economy, commercials featuring the star of Maverick and The Rockford Files that promise to turn equity into tax-free money sound pretty good.
Financial Freedom is upfront about the need to explore other options -- such as applying for a home-equity line of credit, downsizing or postponing retirement -- before taking out a reverse mortgage. And it steers clear of troubling marketing claims spotted elsewhere: that reverse mortgages are a government benefit (they're not) or that you can never lose your home (you can if you don't pay taxes and insurance).
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Reverse mortgages have relatively high upfront costs, so they're best if you plan to stay put for a while. They're not a fix for temporary hardship (see kiplinger.com/links/reversemortgages).
-
Use An iPhone? You May Be Hearing From A Class-Action Lawsuit Group
A handful of suits against the iPhone maker seek to crack down on everything from app store purchases to messaging.
By Keerthi Vedantam Published
-
Capital One/Discover: What's In Their Wallet For You?
Push back on Capital One's planned merger with Discover is growing with one group of consumer advocates calling for a public hearing.
By Keerthi Vedantam Published
-
403(b) Contribution Limits for 2024
retirement plans Teachers and nonprofit workers can contribute more to a 403(b) retirement plan in 2024 than they could in 2023.
By Jackie Stewart Published
-
Roth IRA Contribution Limits for 2024
Roth IRAs Roth IRA contribution limits have gone up for 2024. Here's what you need to know.
By Jackie Stewart Published
-
Best Foreclosure Sites for Finding Properties
Making Your Money Last Wondering how to find foreclosed homes for sale for your next residence or to flip for a profit? These websites will guide you to foreclosures and real estate-owned properties to buy.
By Bob Niedt Last updated
-
Luxury Home Prices Rise as the Rich Dodge High Mortgage Rates
Luxury home prices rose 9% to the highest third-quarter level on record, Redfin reports, growing nearly three times faster than non-luxury prices.
By Kathryn Pomroy Published
-
Four Tips for Renting Out Your Home on Airbnb
real estate Here's what you should know before listing your home on Airbnb.
By Miriam Cross Published
-
Five Ways to a Cheap Last-Minute Vacation
Travel Procrastinator? No matter. You can pull off a fun and memorable getaway on a moment's notice — without breaking the bank.
By Vaishali Varu Last updated
-
How Much Life Insurance Do You Need?
insurance Instead of relying on rules of thumb, you’re better off taking a systematic approach to figuring your life-insurance needs.
By Kimberly Lankford Published
-
When Is Amazon Prime Day?
Amazon Prime In 2023 Amazon had two Prime Day events — one in July and another, called Big Deal Days, in October. We expect 2024 to follow the same schedule.
By Bob Niedt Last updated