Calculators-for-Reverse-Mortgages

As with any financial decision, or doctor��s opinion, or automobile purchase, you should never take the first Reverse Mortgage Calculator estimate as the only assessment when deciding whether to do a Reverse Mortgage.? You would not only to one politician before voting, and should not listen to one lender��s quote on what you can receive for your well earned equity in your home.? Here are some important suggestions for you to follow when using a Reverse Mortgage Calculator.

The most important thing to remember when using a Reverse Mortgage Calculator is to remember that no calculator can give you the same amount of accuracy and information that a live loan officer from an established Reverse Mortgage Lender can give you. The online calculators that are great for getting an initial look at your situation, suffer from a few problems.? One, Reverse Mortgage interest rates change every week.? The Federal Government sets all Reverse Mortgage interest rates and they change on Tuesday of every week.? This means that there are many Calculators that do not update their estimates as often as the rates change and your calculator estimate may be off by hundreds, or even thousands of dollars.

Another thing to keep in mind is that most calculators do not have a fully expressed list of closing costs.? The closing costs of each borrower��s Reverse Mortgage are always very different.? For one, some areas of the country will have state and county taxes applicable.? In some areas extra title insurance is required.? In other areas, there are provisions built in because of the danger of floods or wildfires.? For each applicant Reverse Mortgage closing costs are different.? In these expressing these particulars, are where most Reverse Mortgage Calculators are lacking in accuracy.? Most will have listed that you need to make sure to contact a lender to ensure that your quote is current and accurate.

The last thing to be watchful of when receiving your online quotes, are that just recently there have been some very important changes to the Reverse Mortgage program.? The Federal Government, in response to the very poor economy and the irresponsible lending practices of so many banks, has required all lenders to lower their amount on Principal Limit by 10%.? What this means for you is that you will be able to borrower 10% less of funds that you could under a month ago.? It is almost certain that your online Reverse Mortgage Calculator will not reflect these very recent changes.

The Reverse Mortgage calculator is not a bad thing.? It is a very useful and quick way to judge whether moving to the next step with a Reverse Mortgage is warranted.? However, it is only a first step and contact a certified Lender is the second.? Definitely do both but make sure you are getting mulitiple opinions just like you would be doing at the doctor, the car dealership, or the stock market.

A-Reverse-Mortgage-Calculator---Clarifying-Your-Retirement-Finance-Picture

If you are considering a reverse mortgage on your home as a means of helping fund your golden years, you can eliminate some of the mystery about how much you can reasonably expect in the way of a reverse mortgage loan by using a reverse mortgage calculator.

You can choose a reverse mortgage calculator from one of the dozens available online. They all require you to input some data concerning your home's estimated worth, but are relatively easy to use and will be the quickest way you have of determining if taking a reverse mortgage on your home will be a financially prudent move.

The AARP--American Association of Retired Persons--website has an extremely user-friendly reverse mortgage calculator; it generates more traffic than any other. The AARP reverse mortgage calculator requires that you supply information on your age, the age of your spouse, your zip code, and the estimated value of your home. By inputting this information into the reverse mortgage calculator, you will be taking the first steps to determine if you want to pursue the reverse mortgage process.

The accuracy of the estimate you receive will depend on the accuracy of the information you give to the reverse mortgage calculator. Reverse mortgages are a form of financing entirely different from traditional mortgages, and while the AARP reverse mortgage calculator gives an estimate based on the current value of your home, other calculators will ask for both the current value of your home and the remaining balance on any existing mortgage you have.

A sophisticated reverse mortgage calculator will be able to factor in information like the total amount of money you would like from a reverse mortgage and the manner in which you wish to receive it--in cash, as monthly payments, as a line of credit, or as all three. After you have supplied the requested information, the calculator will automatically run the figures and come up with a fairly good picture of what you can reasonably expect by taking out a reverse mortgage.

A reverse mortgage calculator, no matter how sophisticated, offers approximate mortgage amount estimates for national reverse mortgage programs, and cannot factor in cost variables in your area. Local lenders can add application, originating, closing, and termination fees to your reverse mortgage, and some of them will be accruing interest for the duration of the loan. The amount of money you actually receive will be affected by such fees.

Applying-for-Reverse-Mortgage

Senior citizens will be happy to know that they don't have to pay monthly mortgage fees anymore when they hear about reverse mortgage loans. Reverse mortgage loans, which are only available for citizens 62 years old or older, are mortgage plans that don't require the borrower to pay monthly payments. In fact, the borrower pays nothing at all. Instead, the borrower will receive money from the lender, and the lender will be paid back by the proceeds of the house sale. Reverse mortgages are designed for senior citizens, because people know that when living in those glorious golden years, people have more important things to do than worry about possible foreclosures and mortgage payments; important things such as spoiling the grandchildren or working on important hobbies.

Applying for Reverse Mortgage loans are easy, especially since the federal government requires that all reverse mortgage applicants receive financial counseling before making a decision. Financial counseling services can be provided, or chosen by the applicant, and the federal government pays for it; basically, applicants get a free lesson! In addition, what is called "reverse mortgage calculators" are available on most online sites, that offer reverse mortgage loans; reverse mortgage calculators are also available in person. A reverse mortgage calculator is a pre-application estimate of how much the applicant is liable to receive, and all that it takes to find out is to enter a few simple pieces of information such as age, spouse or work partner's age, estimated home value, and that's it.

When and if the senior citizen decides he or she wants to go ahead with the application process for a reverse mortgage, then that person need only find a reverse mortgage company or an individual wholesale lender. Wholesale lenders, lenders who purchase reverse mortgage plans at a wholesale price from companies like Fannie Mae, Federal Housing Authority, or Financial Freedom, can most often be searched for by state or by rating. People can do this by referring to the National Reverse Mortgage Lenders Association (NMRLA); applicants can even check the lenders' profiles to see what other people have said about that lender's personality, services, attitude, and helpfulness in the application process, and beyond. Companies such as the ones mentioned above also have lenders that work directly for them, which can be searched for in the same way.

By Applying for Reverse Mortgage loans, senior citizens who are 62 years or older will have gone through a strict process to weed out the bad lenders from the good, until the best lender for that specific citizen's personality is found. This will help people be better informed, be treated more respectfully, and even help people develop a nice talkative friendship relationship with the lender during the application process.

2-Pros-And-3-Cons-Of-Reverse-Mortgages

Reverse mortgages have grown much these days to achieve greater visibility in the eyes of the public. They can help senior citizens enhance their lifestyle by offering greater financial freedom to them.

A reverse mortgage converts home equity into cash flow for the senior home owner. The cash flow can be obtained as monthly incoming payments or can be drawn upon as an equity line for one-time payouts – or a combination of the two.

Reverse mortgages can be a source of immediate cash when needed. There are many providers of reverse mortgage loans these days and the competition has made it easy for any qualifying senior to obtain necessary cash to improve their lifestyles.

The senior taking reverse mortgage can continue living in the same home that has been reverse-mortgaged and get monthly payments from the reverse mortgage. This additional income compliments any existing retirement income (including social security) nicely. Seniors can easily calculate the amount of money they will get from this loan through the use of a reverse mortgage calculator.

Reverse mortgage money can be used according to the free will of the senior home owning citizen. The money can be spent on home repairs, remodeling, medical expenses, grand children education expenses, or to take a dream vacation and travel the world. It would simply be the call of the home owner.

A reverse mortgage can be used to pay off an existing mortgage. This works in two beneficial ways – there are no more payments to make on an existing conventional mortgage, and there is an additional income line via the reverse mortgage route. All of this translates into increased spending power and disposable income for the senior home-owning borrower.

The money obtained through reverse mortgage is not repayable until the home owning senior passes away or moves out of the home. The lender cannot possess the home if the legal heirs decide to repay back the loan in order to keep the house for themselves. All these are the advantages or pro sides of a reverse mortgage.

Reverse mortgage can have the down sides or cons as well. Taking out reverse mortgages can be costly sometimes as these are profitable items for the reverse mortgage lenders. The money payable to the lender can take the form of origination fees, closing costs or other miscellaneous charges. Another limitation of reverse mortgage is that if the age of the borrower is considerably less, so is the amount that can be obtained through reverse mortgage (minimum qualification age is 62 years). Senior borrowers using reverse mortgage to finance their lifestyles are still responsible for paying taxes, insurance and for home repairs, as applicable.

Seen in balance, the cons of reverse mortgage are of lesser effect than the pros of taking one.