A ThinkGlink reader asks about withdrawing IRA money to pay off his mortgage early. Is this is a good idea? What are the tax consequences to withdrawing IRA funds? Ilyce discusses the pros and cons of paying off the mortgage with IRA money. 

A ThinkGlink reader worries about losing her house if she puts her mother in a nursing home. Her mother had given her the home using a quit claim deed. How does Medicaid treat quit claim deeds? Ilyce discusses her options including putting documentation together to protect the home.  

Many consumers struggle to stay confident during this financial crisis. What can you do to strengthen your personal finances? Ilyce offers personal finance actions and tips that you can follow to give yourself some security and peace of mind.  

A ThinkGlink reader writes that her mother wants to sell her house. The house deed has three names on it: the mother, the son and the daughter. The son won’t give up his interest in his mother’s property to enable the sale. The reader asks what legal recourse her mother has to remove the name of the son. Ilyce says the mother’s options are limited and this is a case that shows why parents should think carefully before executing a quit claim deed. The mother may have to share the proceeds of the home sale with her son. 

A ThinkGlink reader worries about her real estate agent changing her approach to selling a home. The reader says the real estate agent first said the home “shows well” and is now asking her to declutter her house. Ilyce says the housing market likely changes the approach the real estate agent takes. She says a good agent may change tactics, such as including staging, as housing market conditions shift.  

September 29, 2008 by Justin McHenry

When JP Morgan Chase bought the assets of the failed bank Washington Mutual for $1.9 billion last week, it became the second biggest bank in the country behind Bank of America. It also became the largest credit card issuer in the United States, at least in terms of outstanding loan balances.

Washington Mutual purchased the credit card company Providian in 2005, and began marketing cards under the WaMu brand as well as being the issuer for credit card partners such as retailers, associations, sports teams, and more. With the WaMu acquisition, Chase not only increases its customer base, but it buys these contractual relationships with outside partners, a valuable asset in the competitive credit card market.

While the credit card market remains competitive, Chase’s acquisition of WaMu — coupled with today’s news that Citi will buy Wachovia — means the market has consolidated further, with even fewer players dominating the lion’s share of the market. This is probably not currently a concern to regulators who are preoccupied with stabilizing financial markets, but over time it could mean less choice for consumers as it becomes more difficult to gain credit and also avoid the higher interest and fees that most of the major issuers offer.

A home owner writes that she’s unsure of her home’s value and that she and her husband have taken out several mortgage loans. Because some of the loans will soon adjust she’s not sure they can keep making the payments. She worries about refinancing or selling the home and not getting enough to pay off the mortgage loans. How can she determine an accurate home value? 

An older Think Glink reader asks about combining an adjustable rate mortgage (ARM) and a home equity line of credit (HELOC) into a 30 year fixed rate mortgage. She’s also considering waiting until mortgage interest rates stabilize. Should she refinance the ARM and HELOC into a fixed rate mortgage loan? Ilyce says she should look at the terms of her loan and compare that with market conditions such as the value of her home.  

A Think Glink reader asks which economic indicators he should monitor as a gauge for when to refinance his mortgage or home equity line of credit (HELOC). Ilyce advises monitoring mortgage interest rates as opposed to all the economic indicators that affect them because of recent events in the housing and financial markets. Learn how to watch mortgage interest rates.  

Americans spend more than they used to on mortgage and rent payments. The percentage of the family budget used for housing costs has become unmanageable for some families. How can families cut or increase their household budget to pay their rent or mortgage? Ilyce offers some tips for the family budget.