A Reverse Mortgage Is A Smart Alternative For Tapping Home Equity

With the current lending climate, getting equity back out of a home is a challenge. Lenders aren't eager to do home equity lines of credit or second mortgages as they were a few years ago. However, the reverse mortgage is making a comeback, according to Annamaria Andriotis of Smart Money magazine.

You may be familiar with reverse mortgages from TV ads and infomercials. They may sound too good to be true, but reverse mortgages are backed by the Federal Housing Administration and are a legitimate government program, not a late-night TV scam. 

Smart Money says that MetLife Bank has increased its reverse mortgages by 171% from 2010 to 2011. That's a substantial increase for a single product by a single lender, even though the total number (10,512) may seem low.

Reverse mortgages are, of course, only available to people ages 62 and up. Homeowners are allowed to get a loan for a percentage of the home's value: up to 62% for a 62 year old and up to 72% for an 80 year old. There are plenty of associated fees with a reverse mortgage, including origination and HUD mortgage insurance premiums, but they can be a good way to leverage the equity in your home and use that money as long as you live there, especially if you can't get a traditional home equity loan.

How to find a good reverse mortgage lender? 

The National Reverse Mortgage Lenders Association has a website with lots of information on how to do that. You can also try Weemba.com. Weemba allows you to register and post your loan needs, including for reverse mortgages, at no cost to you. 

Because your post only shows up under a nickname, you can include information about the value of your home, how long you've been paying on it, any income that you have and a no-cost, no-impact credit score. No one can connect the information to who you really are. If a professional lender finds your post and wants to contact you, you will get an alert by email letting you know that, and you can say yes or no to it as you wish.

Besides reverse mortgages, Weemba allows you to post for all kinds of loan needs, both personal and business: HELOCs, mortgages, home improvement loans, medical loans, lines of credit, car loans, RV loans, boat loans and all kinds of business loans too. 

There is never a fee for a borrower to use Weemba; it is not a direct lender. The website simply provides users with the tools to present themselves to professional lenders in the best way possible. Weemba is changing the way that borrowers and lenders find each other online, forever.

Yearly Budget Review 'Could Help Prevent Debt Problems'

Budgeting (Photo credit: 401K)People could greatly improve their financial planning just by comparing today's finances with a year ago, according to financial solutions company Think Money.

Checking bank statements from a year earlier and comparing your spending then with today could give a good insight to how your spending habits have changed - for the better or for the worse.

"Looking back at how your finances were in January 2011 could help you to make some important changes to the management of your finances here in February 2012, and give you a clearer picture of what decisions you need to make for the year ahead," said an expert at Think Money.

"Get together all your bank statements, receipts, budget plans, invoices for bills and any other important financial documents you have from the past year. Have your finances, generally speaking, improved? Got worse? Remained largely the same? Depending on what shape your finances are in now, compared with 12 months ago, you could take various approaches to dealing with them."

In particular, Think Money said comparing debt levels with a year ago could be very important.

"If you were managing your debts successfully a year ago, but feel you've lost control now, what were you doing differently then? Did you have fewer debts of smaller amounts, a higher disposable income, or were you simply more financially organised? If you're facing debt problems, it's important to get professional advice as early as possible, so you can find an approach to budgeting and debt management that works for you."

Save Money On Prescriptions With LowestMed.com

Prices of prescription drugs vary from one pharmacy to the next. Consumer Reports market research found a 26% price variation between pharmacies on the same drug. It's not easy to shop around when filling your prescriptions. Website Lowestmed.com has come out with a solution to help you quickly and easily compare the prices of prescription drugs at many locations in your area.

Lowestmed.com has three ways to access its comparison data base. Simply go online to Lowestmed.com and click on the search button. Enter the name of the drug you want to find out the price for. Also enter in the zip code of the area where you want to shop. You can search as far as 30 miles away or narrow it down to a 10 mile radius. After you press the search button you select what milligram strength and either the 30 or 90 day amount.

How to use the website on your desktop computer.

As a test I entered Lipitor 10 mg. I got 8 results back with a price range between $118.00 to $123.00. It listed Atorvastatin as an alternate drug and displayed a price range between $63.00 and $107.00. The stores where to purchase the prescription and a map to them were part of the results. When you go to the pharmacy just present the card and you will be charged the price listed on the website.

How to use it on your phone.

You don't have to be in front of your computer to use Lowestmeds.com. There also is an iPhone and Android phone app. Or you can just use your web browser on your phone to search while you are out of the house.

Open the app and enter the drug and milligram strength written on your prescription. Search for the lowest price and tap the discount card button. Your ID#, Group#, and Bin# will appear. Just show it to your pharmacist to get the discounted price. You don't have to use the member card because the info will be on your phone screen,

If you have Medical Insurance.

LowestMed gives you three ways to get low prices on your medications by comparing; 1.the prices of your insurance plan 2. a competitive discount card and 3. pharmacy low cost cash list prices. Carry both your insurance card and the LowestMed Discount card with you when purchasing your medications. Check LowestMed’s website or mobile tools to see which payment method you should use to get the best price.

When you use the LowestMed card to purchase your prescription or purchase a low cost generic drug, save a copy of the receipt. If later in the year, you need to apply the costs of your prescriptions to meet your deductible, submit the receipt and a copy of your insurance card to your insurance plan to get deductible credit.

• LowestMed provides you with access to a mobile internet application from your smart phone to find the pharmacies with the best prices in your local area.
• Our text message tool allows you to send LowestMed a text message of your drug name and zip code and you will receive back a text message of pharmacies with the best price.
• LowestMed does not limit you to one pharmacy chain like many discount programs, but has contracted prices with 58,000 pharmacies including: Costco, Wal-Mart, Kmart, Walgreens, Rite Aid, CVS, Krogers, Target, Shopko etc. as well as local grocery store chains.
• Access to LowestMed’s web site gives you quick comparisons of prices for your medications at the pharmacies in your local area.
• LowestMed gives you access to contracted discounts that can save you 10% - 85% off retail prices. This is possible due to the volume purchasing power of 15 million consumers.
• Pharmacies have unique lists of low-cost drugs. To help you save money, every month LowestMed finds the best prices from all major pharmacy chains.

This app is something that is much needed these days because it will provide a savings to individuals who didn’t have an easy way to know if they were getting a good deal of not.

If you want to download the LowestMed app, just head over to the Apple App Store or Android Marketplace.

Suze Orman Not Pre-Approved on Her New Prepaid Card

Suze Orman is jumping on the prepaid Mastercard bandwagon with her own card and many experts are not approving. Haven't we seen many times before the celebrity endorsement of prepaid plastic. From Lil' Wayne to the Kardashians, many celebrities are seeing green from these highly lucrative, high fees milking of the un-banked. Those without checking accounts are being told that they need this card to function in the economy.

When a celebrity has to go on television to defend a product it is a bad sign of the public's opinion of such products. Suze Orman has been a respected financial guru for many years and all can agree has taught millions to save, invest and be responsible with money. But the prepaid card in general has such a bad rep. with its high gotcha fees, it sours the public's perception of Suze Orman and lowers people opinion of her. She went on CNN to defend her prepaid card.

The prepaid card itself is basically a gift card with fees. Enrollees in the program pay $3 per month for access to the plastic. After activation, consumers can add money through bank transfers or cash deposits, and then use the accrued money for a variety of purchases. "You can only spend what you load on it," according to Orman's official website. At Allpoint specific ATM's $2.00 per transaction (waived for 30 days with a qualifying Direct Deposit or Bank Transfer of $20.00 or more). Non-Allpoint ATM Withdrawal Fees $2.00 per withdrawal plus any fees charged by the ATM owner or operator. Domestic ATM Balance Inquiry Fee $1.00 per transaction (waived for 30 days with a qualifying Direct Deposit of $20 or more or Bank Transfer) plus any fees charged by the ATM owner or operator. Though some things are without cost, many are not. For a complete list of fees go to Suze's website here.

To be fair Suze does give a list of ways to minimize fees and use the card in the most inexpensive way. Her list is as follows to have only the $3.00 monthly fee:

• Sign up for Monthly Direct Deposit or bank account transfer of $20 or more and use an Allpoint® ATM
• Don’t use ATMs other than Allpoint
• Get cash back at the point of purchase
• Avoid using cash to reload; use MoneyGram® if you need to
• Use TheApprovedCard.com, text alerts and our automated telephone system to check your balance
• Pay your bills online
• Don’t call customer service more than once a month
• Don’t make over-the-counter cash withdrawals at a bank

Critics of Suze can agree this prepaid card adventure has tarnished her reputation and made her perceived as just a huckster. When Suze Orman recommends something people would follow her advice because it has always been for the benefit of the people. Now her advice is possibly for the benefit of herself. Her card is not a bad card but it's not a great card either. It's just like all the others. On twitter she got into a name calling fight with some online bloggers, even calling them "idiots", she did apologize later. 

Maybe Suze should stick with writing books and teaching, it has gotten her very far plus endured her to her fans. Suze, your fans deserve better.

5 Luxuries You Can Do Without (And Not Miss)

Image via WikipediaThink back to when you were a kid. What did you have? What didn’t you have? Now, think about what you have now. What do you have that, in reality, you don’t need? As technology has progressed, we have found more and more luxuries become necessities. But is that necessarily true? Do we need everything we think we do? What can you cut out of your budget and never even miss? 

Well, here are five luxuries you can do without. Best of all, you won’t even miss them!

1. Cable television –Everyone has a computer. And I’m not saying it is a luxury (though, in a way, it is). But since you have a computer, why are you paying for cable television? Everything you watch on TV can be found online, and for a lot cheaper. Weather you subscribe to Hulu Plus or Netflix, you can have streaming TV come to you. Best of all, no more commercials. Want to cut down even further? Well, a lot of TV stations now have the latest episodes of their shows on their website- for free! If you already own a flat screen TV, chances are that it can be hooked up to the internet. There are many ways to do that, from being info directly from your computer to inexpensive set-top boxes. Whatever the case is, you’ll save hundreds of dollars a year just cutting the cord.

2. SUV –Do you still have an SUV? What do you need it for? It’s doubtful you are dragging around more than three kids at a time, and that tank is sucking up gas like a camel in the desert. If there is no real, concrete reason for you to have an SUV; get rid of it! And don’t give me any guff about needing to haul stuff. Cars now come with foldable back seats and roomy trunks- big enough for the Christmas tree to ride comfortable. Get yourself a car with good gas mileage and save thousands.

3. Smart phone – Do you have a computer? Sure you do! So, why do you need a smart phone too? Remember the days when having a phone meant you stood next to the wall in the kitchen to talk? Or had a machine to answer when you weren’t home? Remember when you were not available twenty-four hours a day and didn’t check your email every five minutes? Get some peace and quiet back in your life and save money too. Switch your cell to a regular, everyday variety. No internet. No touch screen. Just voice and text. Think about it; do you really need, or want, to be online twenty-four/seven?

4. Bottled water –Not only are you being environmentally irresponsible when you buy bottled water, but you are being financially irresponsible as well. Think about this: over 80% of bottled water comes from tap water. That means what comes out of your sink goes into a plastic bottle and you pay extra for it. Don’t waste your money. If you have an issue with plain tap water, or live somewhere where the water’s not so great, buy a filter and stainless steel bottles. You’ll save money and room in landfills.

5. Coffee– Do you really need that four dollar cup of coffee every morning? I think we all know the answer to that question. If you can’t live without your caffeine fix, buy a travel mug and make your own. Coffee makers can be timed and ready for you every morning. If you crave your Starbucks, buy a bag at the grocery store. You’ll save money, time, and your waistline. Oh, what does your weight have to do with it? Just think about what you add to your coffee and you’ll understand. When you make it for yourself, you are virtually guaranteed to drink healthier.


There are many more luxuries out there, and you know what they are. Take a second look at your checkbook and see if you can’t cut a few things out. Most of the time, you won’t even miss them.

Author Bio:-

This is a guest post by Coleen Torres from phone internet. You can find more about her at her profile.

Older Workers Spend Less and Save More

Image via WikipediaIsn't it great when something you know is true is proved in a survey. On AARP.org there is a great article about how older workers spend less on lunches and coffee than their younger co-workers. Older workers not only spend less money on lunches but they spend a lot less.

The survey taken by recruiting and staffing firm Accounting Principles shows younger workers ages 18 - 34 spend almost twice as much on coffee than workers 45 years and older. According to the Workonomix Survey, they also spend about 40 percent more on lunches. Even though older workers are earning more money they actually spend less than their younger coworkers.

The average U.S. employee spends nearly $3,000 a year on coffee and lunches at their job. This statistic should be an eye opener to what's going on in your daily spending. Even if you just cut that number in half you would have so much more money to save toward your retirement fund.

If you are starting now in your 50's and 60's to save $3,000, at the end of ten years you would end up with a tidy sum in your IRA. Using the AARP lunch saving calculator at the end of 10 years with an 8 percent rate of return you would have $12,690. The big payoff goes to the younger worker who starts to save this way now. 

Try AARP's lunch savings calculator to see how much you could save by bringing your lunch from home.

Check out: Study: Older Workers Spend Less. And You? at AARP.org