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.
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