Amount you can borrow with a reverse mortgage reduced by 10%

The amount that homeowners can borrow with a reverse mortgage has been reduced by 10% by the Federal Housing Administration. The new rule applies only to reverse mortgages obtained after October 1, 2009. If you took out a reverse mortgage before that date, you won’t be affected. But if you want to take out a […]

New limits on FHA-backed mortgages

The Federal Housing Administration, which insures up to a third of all new mortgages, has adopted some limits on the mortgages it will insure. The FHA doesn’t make loans, but it insures loans made by other lenders in order to encourage lenders to give mortgages to people with shaky credit or little in the way […]

Own real estate? Whose name is on the deed?

When a couple buys a home, they often simply put both names on the deed. When a homeowner gets married, he or she often adds the spouse’s name to the deed. And when a single person shares a home with an elderly relative, they often put both names on the deed. This may be common, […]

10 common myths about your credit score

Anyone looking for a mortgage (or other loan) needs to worry about credit scores. But how much do you really know about your score? Take this quick test and see.   1. If I pay my credit card bill in full each month, that will significantly improve my credit score.      True    False 2. […]

Ideas that can prevent a will contest

Some people are worried that after they die, family members may be unhappy about certain provisions in their will and may try to challenge the will in court. This is particularly true if one child is getting less in the will than others, for instance. Here are some ways to head off a will contest: […]

You might need a trust if your spouse isn’t a U.S. citizen

Ordinarily, there’s no estate tax on assets that pass at death to someone’s spouse. But that’s true only if the surviving spouse is a U.S. citizen. If the spouse isn’t a citizen, then the estate tax generally applies…unless you set up something called a “Qualified Domestic Trust,” or QDOT. Instead of leaving your assets directly […]

Have you changed your investment manager recently?

A large number of people have changed their investment manager recently – or have decided to become their own manager – as a result of the 2008 market collapse that led to widespread terrible returns. That’s fine – but keep in mind that if you change your manager, you should check with your estate planner […]

Be wary of online retirement planning calculators

A lot of websites offer retirement planning calculators, where you can enter your age, assets, and other types of information and find out how much income you can expect in retirement. These calculators may be somewhat useful, but many of them have serious flaws, and in general they produce results that are way too optimistic, […]

Put burial or cremation instructions in writing

If you have strong preferences regarding burial or cremation, it’s a good idea to put these in writing in your will or in your health care power of attorney. You may have expressed your wishes verbally to your loved ones, but people can become uncertain in a time of crisis, and family members might have […]

Revise your estate planning if you’re diagnosed with a serious disease

 If you or a loved one has recently been diagnosed with a serious disease, it’s a good idea to review your estate planning documents and adjust them to reflect the diagnosis. For instance, if someone is diagnosed with the early stages of Alzheimer’s disease – or any other disease that could affect cognitive functioning down […]