All You Want to Know About Reverse Mortgages

For the last six months I have been thinking about reverse mortgages to supplement my income as a retiree. We purchased our home about 10 years ago and have 5 more years to go (15-year conventional loan). However, since the investment market(our source of income plus SS payments) has been flat the last two years, reverse mortgages is very tempting to supplement our income. The following article was published by the Federal Trade Commission and updated on March, 2011. I found the article very informative.

"If you’re 62 or older – and looking for money to finance a home improvement, pay off your current mortgage, supplement your retirement income, or pay for health care expenses – you may be considering a reverse mortgage. It’s a product that allows you to convert part of the equity in your home into cash without having to sell your home or pay additional monthly bills.

The Federal Trade Commission (FTC), the nation’s consumer protection agency, wants you to understand how reverse mortgages work, the types of reverse mortgages available, and how to get the best deal.

In a “regular” mortgage, you make monthly payments to the lender. In a “reverse” mortgage, you receive money from the lender, and generally don’t have to pay it back for as long as you live in your home. The loan is repaid when you die, sell your home, or when your home is no longer your primary residence. The proceeds of a reverse mortgage generally are tax-free, and many reverse mortgages have no income restrictions.

Types of Reverse Mortgages
There are three types of reverse mortgages:

1. Single-purpose reverse mortgages, offered by some state and local government agencies and nonprofit organizations
2. Federally-insured reverse mortgages, known as Home Equity Conversion Mortgages (HECMs) and backed by the U. S. Department of Housing and Urban Development (HUD)
3. Proprietary reverse mortgages, private loans that are backed by the companies that develop them

Single-purpose reverse mortgages are the least expensive option. They are not available everywhere and can be used for only one purpose, which is specified by the government or nonprofit lender. For example, the lender might say the loan may be used only to pay for home repairs, improvements, or property taxes. Most homeowners with low or moderate income can qualify for these loans.

HECMs and proprietary reverse mortgages may be more expensive than traditional home loans, and the upfront costs can be high. That’s important to consider, especially if you plan to stay in your home for just a short time or borrow a small amount. HECM loans are widely available, have no income or medical requirements, and can be used for any purpose.

Before applying for a HECM, you must meet with a counselor from an independent government-approved housing counseling agency. Some lenders offering proprietary reverse mortgages also require counseling. The counselor is required to explain the loan’s costs and financial implications, and possible alternatives to a HECM, like government and nonprofit programs or a single-purpose or proprietary reverse mortgage. The counselor also should be able to help you compare the costs of different types of reverse mortgages and tell you how different payment options, fees, and other costs affect the total cost of the loan over time. To find a counselor, visit www.hud.gov/offices/hsg/sfh/hecm/hecmlist.cfm or call 1-800-569-4287. Most counseling agencies charge around $125 for their services. The fee can be paid from the loan proceeds, but you cannot be turned away if you can’t afford the fee.

How much you can borrow with a HECM or proprietary reverse mortgage depends on several factors, including your age, the type of reverse mortgage you select, the appraised value of your home, and current interest rates. In general, the older you are, the more equity you have in your home, and the less you owe on it, the more money you can get.

The HECM lets you choose among several payment options. You can select:

a “term” option – fixed monthly cash advances for a specific time.
a “tenure” option – fixed monthly cash advances for as long as you live in your home.
a line of credit that lets you draw down the loan proceeds at any time in amounts you choose until you have used up the line of credit.
a combination of monthly payments and a line of credit.
You can change your payment option any time for about $20.

HECMs generally provide bigger loan advances at a lower total cost compared with proprietary loans. But if you own a higher-valued home, you may get a bigger loan advance from a proprietary reverse mortgage. So if your home has a higher appraised value and you have a small mortgage, you may qualify for more funds.

Loan Features
Reverse mortgage loan advances are not taxable, and generally don’t affect your Social Security or Medicare benefits. You retain the title to your home, and you don’t have to make monthly repayments. The loan must be repaid when the last surviving borrower dies, sells the home, or no longer lives in the home as a principal residence.

In the HECM program, a borrower can live in a nursing home or other medical facility for up to 12 consecutive months before the loan must be repaid.

If you’re considering a reverse mortgage, be aware that:
Lenders generally charge an origination fee, a mortgage insurance premium (for federally-insured HECMs), and other closing costs for a reverse mortgage. Lenders also may charge servicing fees during the term of the mortgage. The lender sometimes sets these fees and costs, although origination fees for HECM reverse mortgages currently are dictated by law. Your upfront costs can be lowered if you borrow a smaller amount through a reverse mortgage product called a "HECM Saver."
The amount you owe on a reverse mortgage grows over time. Interest is charged on the outstanding balance and added to the amount you owe each month. That means your total debt increases as the loan funds are advanced to you and interest on the loan accrues.
Although some reverse mortgages have fixed rates, most have variable rates that are tied to a financial index: they are likely to change with market conditions.
Reverse mortgages can use up all or some of the equity in your home, and leave fewer assets for you and your heirs. Most reverse mortgages have a “nonrecourse” clause, which prevents you or your estate from owing more than the value of your home when the loan becomes due and the home is sold. However, if you or your heirs want to retain ownership of the home, you usually must repay the loan in full – even if the loan balance is greater than the value of the home.
Because you retain title to your home, you are responsible for property taxes, insurance, utilities, fuel, maintenance, and other expenses. If you don’t pay property taxes, carry homeowner’s insurance, or maintain the condition of your home, your loan may become due and payable.
Interest on reverse mortgages is not deductible on income tax returns until the loan is paid off in part or whole.

Getting a Good Deal

If you’re considering a reverse mortgage, shop around. Compare your options and the terms various lenders offer. Learn as much as you can about reverse mortgages before you talk to a counselor or lender. That can help inform the questions you ask that could lead to a better deal.

If you want to make a home repair or improvement – or you need help paying your property taxes – find out if you qualify for any low-cost single-purpose loans in your area. Area Agencies on Aging (AAAs) generally know about these programs. To find the nearest agency, visit www.eldercare.gov or call 1-800-677-1116. Ask about “loan or grant programs for home repairs or improvements,” or “property tax deferral” or “property tax postponement” programs, and how to apply.
All HECM lenders must follow HUD rules. And while the mortgage insurance premium is the same from lender to lender, most loan costs, including the origination fee, interest rate, closing costs, and servicing fees vary among lenders.
If you live in a higher-valued home, you may be able to borrow more with a proprietary reverse mortgage, but the more you borrow, the higher your costs. The best way to see key differences between a HECM and a proprietary loan is to do a side-by-side comparison of costs and benefits. Many HECM counselors and lenders can give you this important information.
No matter what type of reverse mortgage you’re considering, understand all the conditions that could make the loan due and payable. Ask a counselor or lender to explain the Total Annual Loan Cost (TALC) rates: they show the projected annual average cost of a reverse mortgage, including all the itemized costs.
Be Wary of Sales Pitches
Some sellers may offer you goods or services, like home improvement services, and then suggest that a reverse mortgage would be an easy way to pay for them. If you decide you need what’s being offered, shop around before deciding on any particular seller. Keep in mind that the total cost of the product or service is the price the seller quotes plus the costs – and fees – tied to getting the reverse mortgage.

Some who offer reverse mortgages may pressure you to buy other financial products, like an annuity or long term care insurance. Resist that pressure. You don’t have to buy any products or services to get a reverse mortgage (except to maintain the adequate homeowners or hazard insurance that HUD and other lenders require). In fact, in some situations, it’s illegal to require you to buy other products to get a reverse mortgage.

The bottom line: If you don’t understand the cost or features of a reverse mortgage or any other product offered to you – or if there is pressure or urgency to complete the deal – walk away and take your business elsewhere. Consider seeking the advice of a family member, friend, or someone else you trust.

Your Right to Cancel
With most reverse mortgages, you have at least three business days after closing to cancel the deal for any reason, without penalty. To cancel, you must notify the lender in writing. Send your letter by certified mail, and ask for a return receipt. That will allow you to document what the lender received and when. Keep copies of your correspondence and any enclosures. After you cancel, the lender has 20 days to return any money you’ve paid up to then for the financing.

Reporting Possible Fraud
If you suspect that someone involved in the transaction may be violating the law, let the counselor, lender, or loan servicer know. Then, file a complaint with:

the Federal Trade Commission (FTC). You can do that online at www.ftccomplaintassistant.gov or by phone at 1-877-FTC-HELP (1-877-382-4357).
your state Attorney General’s office or state banking regulatory agency.
Whether a reverse mortgage is right for you is a big question. Consider all your options. You may qualify for less costly alternatives. The following organizations have more information:

Reverse Mortgage Education Project
AARP Foundation
601 E Street, NW
Washington, DC 20049
www.aarp.org/revmort
1-800-209-8085

U. S. Department of Housing and Urban Development (HUD)
451 7th Street, SW
Washington, DC 20410
www.hud.gov/offices/hsg/sfh/hecm/rmtopten.cfm
1-800-CALL-FHA (1-800-225-5342)

Federal Trade Commission
Consumer Response Center
600 Pennsylvania Avenue, NW
Washington, DC 20580
www.ftc.gov/bcp/menus/consumer/credit.shtm — Click on “Mortgages & Your Home”
1-877-FTC-HELP (?1-877-382-4357)

The FTC works to prevent fraudulent, deceptive and unfair business practices in the marketplace and to provide information to help consumers spot, stop and avoid them. To file a complaint or get free information on consumer issues, visit ftc.gov or call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261. Watch a video, How to File a Complaint, at ftc.gov/video to learn more. The FTC enters consumer complaints into the Consumer Sentinel Network, a secure online database and investigative tool used by hundreds of civil and criminal law enforcement agencies in the U.S. and abroad".

I hope you find the above article informative. Any comments?



My Big Fat Greek Wedding is a 2002 Canadian and American romantic comedy film written by and starring Nia Vardalos and directed by Joel Zwick. The film is centered on Fotoula "Toula" Portokalos (Nia Vardalos), a middle class Greek American woman who falls in love with a non-Greek upper middle class "White Anglo-Saxon Protestant" Ian Miller (John Corbett). At the 75th Academy Awards, it was nominated for the Academy Award for Best Original Screenplay. A sleeper hit, the film grossed $241.4 million in North America, despite never reaching number one at the box office during its release (the highest-grossing film to accomplish this feat).

Fotoula "Toula" Portokalos (Nia Vardalos) is going through an early midlife crisis. At thirty, she is the only woman in her family who has "failed". Her family expects her to "marry a Greek boy, make Greek babies, and feed everyone until the day she dies. Instead, Toula is stuck working in the family business, a restaurant, "Dancing Zorba's". In contrast to her "perfect" sister, Athena (Stavroula Logothetis), Toula is frumpy and cynical. She fears she's doomed to be stuck with her life as it is.

At the restaurant, she briefly sees Ian Miller, a handsome school teacher. This event, combined with an argument with her overly-patriotic father, Gus - who merely wants his daughter to marry and settle down rather than pursue a career - motivates her to begin taking computer classes at a local college. She also gets contact lenses, wears her hair curly, and begins to use makeup. Maria, her mother, and her aunt Voula (Andrea Martin) then contrive a way to get Gus to allow her to work at Voula's travel agency.

Toula feels much better in her new job, especially when she notices Ian hanging around looking at her through the window. They finally introduce themselves and begin dating. Toula keeps the relationship secret from her family until some weeks later when Gus finds out. He throws a fit because Ian is not Greek and orders Toula to end the relationship, but Ian and Toula continue to see each other against Gus's wishes. Ian proposes marriage to her, she accepts. Gus is hurt and infuriated, feeling his daughter has betrayed him, and Ian agrees to be baptized in the Greek Orthodox Church and speak fluent Greek to be worthy of her family.


The wedding day dawns with liveliness and hysteria, but the traditional wedding itself goes without a hitch. Gus gives a speech accepting Ian and the Millers as family and buys the newlyweds a house right next door to him. An epilogue shows the new couple's life six years later in which they have a daughter, Paris, whom they raise in the Greek style, but Toula tells her she can marry anyone she wants when she grows up after she says she wants to go to Brownies instead of Greek school.







I hope this video will gave you a big smile. Enjoy!

The Sinulog is an annual festival held on the third Sunday of January in Cebu City, Philippines. The festival commemorates the Cebuano people's pagan origin, and their acceptance of Roman Catholicism.

The features a street parade with participants in bright coloured costumes dancing to the rhythm of drums, trumpets and native gongs. Smaller versions of the festival are held in various parts of the province, also to celebrate and honor the Santo Niño. There is also a "Sinulog sa Kabataan" performed by the youths of Cebu a week before the parade. Recently, the festival has been promoted as a tourist attraction, with a contest featuring contingents from various parts of the country. The Sinulog Contest is usually held in the Cebu City Sports Complex.

The Sinulog celebration lasts for nine days, culminating on the final day with the Sinulog Grand Parade. The day before the parade, the Fluvial Procession is held at dawn with a statue of the Santo Niño carried on a pump boat from Mandaue City to Cebu City, decked with hundreds of flowers and candles. The procession ends at the Basilica where a re-enactment of the Christianizing (that is, the acceptance of Roman Catholicism) of Cebu is performed. In the afternoon, a more solemn procession takes place along the major streets of the city, which last for hours due to large crowd participating in the event.



Here's a Filipino Movie if you speak or understand Tagalog-Philippines National language. The unusual love story unfolds in Lumban, Laguna ---a town famous for cottage cheese from carabao milk--- where lives Ramon who stands to inherit the vast wealth of his mother but only if he can have a child within two years.

If not, the inheritance will be turned over to charity.

But Ramon's discovery of his infertility will turn his life and the lives of three more persons into one roller coaster ride of emotional conflicts.



The English Patient is a 1996 romantic drama film based on the novel of the same name by Sri Lankan-Canadian writer Michael Ondaatje. The film, written for the screen and directed by Anthony Minghella, won nine Academy Awards, including Best Picture. Ondaatje worked closely with the filmmakers.

Set before and during World War II, The English Patient is a story of love, fate, misunderstanding and healing. Told in a series of flashbacks, the film can best be explained by unwinding it into its two chronological phases.

Awards and honors

1996 Academy Awards: Won, Best Picture; Won, Best Actress in a Supporting Role: Juliette Binoche; Won, Best Art Direction-Set Decoration (Stuart Craig and Stephanie McMillan; Won, Best Cinematography (John Seale); Won, Best Costume Design (Ann Roth); Won, Best Director (Anthony Minghella);Won, Best Film Editing (Walter Murch); Won, Best Original Score (Gabriel Yared); Won, Best Sound (Walter Murch, Mark Berger, David Parker, and Christopher Newman);

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In early 1923, two young boys from Tennessee, Rafe McCawley and Danny Walker, pretending to fight the Germans, climb into Rafe's father's biplane crop duster and accidentally start it, giving them their first taste of flying. Soon after, Danny's father (William Fichtner) comes to drag him home, berating him for playing with Rafe and beating him. Rafe attacks Danny's father calling him a "dirty German"; Danny's father counters by explaining that he fought the Germans in World War I and wishes that they never witness the horrors of war.

In the summer of 1940, as grown men, Rafe (Ben Affleck) and Danny (Josh Hartnett) are First Lieutenants in the United States Army Air Corps under the command of Major Jimmy Doolittle (Alec Baldwin). Rafe meets Evelyn Johnson (Kate Beckinsale), a Navy nurse who passes him for his physical examination even though he has dyslexia, and is instantly smitten. The two soon begin dating and fall in love. However, Rafe has volunteered to serve with the Royal Air Force's Eagle Squadrons. Before Rafe leaves for England, he makes a promise to Evelyn that he will come back for her. Evelyn and Danny are transferred with their respective squadrons to Pearl Harbor. Rafe is shot down over the English Channel and presumed to have been killed in action.

Three months later, Evelyn and Danny bond over their mourning of Rafe and unexpectedly develop feelings for each other. They soon begin developing their friendship and in the end they end up in a passionate relationship, stranded in Pearl Harbor for next year.

On the night of December 6, 1941, Rafe unexpectedly returns to Pearl Harbor, having survived the crash and being stranded in occupied France in the interval. He quickly realizes that Evelyn and Danny are now together, and feeling hurt and betrayed, the two friends soon get into a fight at the local hula bar. The next morning, on December 7, they are interrupted by the Japanese attack on Pearl Harbor by Zero fighters, Val dive bombers and Kate torpedo bombers.

The surprise Japanese air raid sinks the battleships USS Arizona, USS Oklahoma and many other ships. Back at the hospital, Evelyn helps tend to the dozens of wounded who come in and must help decide who can and cannot be saved. Meanwhile, Rafe and Danny are the only two who manage to get airborne and shoot down seven Japanese aircraft with P-40s using their reckless tactics, including an old game of theirs called chicken. The two men then go to the hospital, where Evelyn takes blood from them for the hundreds of injured soldiers, and later aid in trying to rescue the many men still in the harbor. In the aftermath, the survivors attend a memorial service for the fallen victims after the U.S. declaration of war on Japan.

Rafe and Danny are both promoted to Captain, awarded the Silver Star and assigned to now-Colonel Doolittle for a dangerous and top-secret mission. Before their departure, Evelyn meets Rafe and reveals that she is pregnant with Danny's child, although she doesn't want Danny to know so he can focus on the upcoming mission. She says that she is going to remain with Danny, though deep down she will always love Rafe just as much. Rafe accepts this.

President Franklin D. Roosevelt (Jon Voight) wants to send a message that the Japanese homeland is not immune from bombing. Danny, Rafe and others are to fly B-25 Mitchell medium bombers from the aircraft carrier USS Hornet, bomb Tokyo and then land in friendly Chinese territory. The two men succeed in their bombing but crash-land into a rice field in a Japanese-held area when their bombers run out fuel. Just as Rafe is about to be shot, Danny flies over head and shoots the attacking Japanese soldiers. Danny's plane then crashes and he is wounded. Japanese come in and attack Rafe and start to hold the others captive. They tie Danny to a cattle holder. Rafe picks up a gun and kills several Japanese. Danny acts as human shield for Rafe and is fatally wounded. Rafe holds a dying Danny in his arms, telling him he can't die because he's going to be a father. With his dying words, Danny tells Rafe to raise his child for him. The crew arrives back in Hawaii and a hopeful Evelyn awaits. She sees Rafe and is excited, but then sees him carrying Danny's coffin.

At the end of the war, Dorie Miller becomes the first African American to be awarded the Navy Cross and Rafe is discharged from the Army. He and Evelyn, who are together again, and Danny's son, also called Danny, who Rafe is bringing up as his own, are back at the farm in Tennessee visiting Danny's grave. Rafe then takes his son flying, and the two fly off into the sunset in the old biplane.



Julio José Iglesias de la Cueva (born September 23, 1943) better known as Julio Iglesias is a Spanish singer who has sold over 200 million records worldwide in 14 languages and released 77 albums. According to Sony Music Entertainment, he is one of the top 10 best selling music artists in history. While Iglesias rose to international prominence in the 1970s and 1980s as a performer of romantic ballads, his success has continued on as he entered new musical endeavors even in his semi-retirement years.



So You Think You Can Dance is an American televised dance competition show that airs on Fox in the United States and is the flagship series of the international So You Think You Can Dance (SYTYCD) television franchise. It is one of my favorite TV shows. This year it is its 9th season in the US. In case you do not watch the show, here is a short history for your information. br />
The series first premiered on July 20, 2005, was created by American Idol producers Simon Fuller and Nigel Lythgoe and is produced by 19 Entertainment and Dick Clark Productions. The first season was hosted by current American news personality, Lauren Sánchez; since the second season it has been hosted by former British children's television personality and one-time game show emcee, Cat Deeley. The show features a tiered format wherein dancers from a variety of styles enter open auditions held in a number of major U.S. cities to showcase their unique style and talents and, if allowed to move forward, then are put through additional rounds of auditions to test their ability to adapt to different styles. At the end of this process, a small number of dancers are chosen as finalists. These dancers move on to the competition's main phase, where they perform solo, duet, and group dance numbers in a variety of styles. They compete for the votes of the broadcast viewing audience which, combined with the input of a panel of judges, determines which dancers advance to the next stage from week to week. The number of finalists has varied as determined by a season's format, but has typically been 20 contestants.

The show features a broad variety of American and international dance styles ranging across a broad spectrum of classical, contemporary, ballroom, hip-hop, street, club, jazz, and musical theatre styles, amongst others, with many sub-genres within these categories represented. Competitors attempt to master these styles—which are generally, but not always, assigned by a luck-of-the-draw system—in an attempt to survive successive weeks of elimination and win a cash prize (typically $250,000) and often other awards, as well as the title of "America's Favorite Dancer". In eight seasons, the winners have been Nick Lazzarini, Benjamin Schwimmer, Sabra Johnson, Joshua Allen, Jeanine Mason, Russell Ferguson, Lauren Froderman, and Melanie Moore. The show has won seven Emmy Awards for Outstanding Choreography and a total of nine Emmys altogether.