Ask Terry Archives

HI Terry. I owe 30000 on home equity. My mtg. Is 230000. The bank wont let me refinance mtg. And equity together. Im 2 years into a7year arm.Should I refinance the 230000 ? Also what is best ..save liquid emergency or pay down home equity or do a little of both..also im a city worker…

I would like to roll one of my retirement funds into precious metals. Can you recommend a trusted broker and fund with low fees? I think I would like a metals fund or certificate rather than actual storage of the metals, but I'm new to this and am seeking advice. I'm 61 and retired, receiving…

A second property is fully paid for. We can't borrow against our primary residence to pay for $75,000 rehab. Should we open the second property to a new mortgage or borrow from deferred comp? House is in prime location and we are planning to rent after rehab for $2,000-$2,500/month. Terry Says:   Only you know whether…

I read your article in Sunday's Tribune about Reverse Mortgages, good article. The article says that the government requires you to go to independent counseling. Where do you go or find one ? Thank You Terry Says:  The reverse mortgage lender will give you a list of approved, independent HUD counselors -- but will not recommend…

Will the remaining principal balance on my reverse mortgage go to my listed relatives?? Thanks....Leslie B. Terry Says:  Once the balance of the loan is satisified, if there is any remaining equity it will go to your designated heirs.  Or your heirs have the option of paying off the reverse mortgage balance -- or 95%…

My brother and I are helping our 94 year old aunt (widowed)with some of her health care and finances. Her 66 year old daughter with Down's syndrome resides with her. We are concerned about the future of our cousin, if her mother passes before her or if her mother someday may need to be placed…

What is your opinion of HECM for purchase ? Thank You Terry Says:  While most RMs are used to allow people to remain in their current home and have the income to maintain the property and taxes, there are more instances of Home Equity Conversion Loans (HECMs) or RMs being used to downsize and purchase…

After reading your article in the Baltimore sunpaper I,m curious about how you would see a reverse mortgage working in this scenario. I,m 74 as is my spouse our home is presently worth about 230,000 with no mortgage and a home equity currently at 26,000 my idea is to sell this home conventionally move to…

If one spouse is under the age of 62.,can that spouse to qualify the other spouse ,and owner of property to qualify for a reverse mortgage ? Thanks Terry Says:  Only if the younger spouse removes his/her name from the title.  That means that when the older spouse dies, the surviving spouse will have no…

  Dear Terry I have read your article about Reverse mortgages in the Sunday Sentinel, My question is, in paragraph number 2, you stated that the interest rate is fixed at the time I take out the reverse mortgage. However, when I closed on my reverse mortgage here in Florida July 2012, the loan officer…

I enjoyed your resent article "5 things to know about reverse mortgages in the Commentary column of the Business section of the Huntsville Times. I think it would be most helpful to the reader in understanding a reverse mortgage if you presented an example. For example, a 65 year old couple owning a $100,000 home,…

My parents r in their mid 80"s and have a reverse mortgage with little money left to use-they r concerned about what happens when the money runs out-how long will they b able to stay in the house and what if they cant pay the monthly fees? thanks Paula Terry Says:   If they took a…

Please let me know who the lender is that helped your dad with his reverse mortgage. Thanks, Sheila Terry Says:  Gosh it was so long ago, that I don't remember.  Go to www.ReverseMortgage.org to search out a RM lender in your area.

Terry, I recentley sold rental property, what can I do to keep from getting taxed on capital gains for the whole amount? Someone told me I could reinvest the money and not get taxed? How, in more land? Or could I put it in the market and not get taxed? Any suggestions would be helpful.…

I am a resident of Illinois and currently have a Bright Start direct-sold plan for my each of my kids. One is 12, the other is 14. They are both in age-based portfolios, and each account currently has about $74,000 in it. I know you not a fan of Bright Start and I'm considering rolling…

Hi Terry, I am a long time fan of yours and value your opinion. My husband and I are thinking about adding a fixed index annuity to our investment portfolio. We currently work with a fee based only financial adcisor who says annuities are bad. We have a diverse investment portfolio of about $557,000 and…

Can you give your opinion on so-called 770 accounts and what you think of them as an investment for retired individuals? Thanks.. Terry Says:   Do you think you've found the "golden goose" or the secrets of the very rich?? Think again!  This is just a twist on a very old tax provision (IRS Code 7702) that allows…

I have had a reverse mortgage for the past 8 years. Since that time the real estate value of my condominium has markedly decreased to the point where the amount I "owe" on the monthly reverse mortgage statement is more than the condominium is worth and that amount increases each month. What are my financial…

I'm 70 year old will investing my money in Ira with a lock in for 8 years be wise Terry Says:  Absolutely not.  I assume you're talking about some kind of annuity.  But you don't need an annuity for tax deferral.  Plus, you'll need some liquidity for Minimum Required Distributions.  Whoever is suggesting you lock…

I am stuck.I cant refinance my mortgage and home equity. That would be 280000. The bank said no.So should I pay off the equity first or save emergency fund 3to6months Terry Says:   OK, I obviously would need more details to give you a good answer.  In fact, let me direct you to people who can…