subject: Use Reverse Mortgage Calculator To Compare Programs And To Prepare Shopping [print this page] The reverse mortgage calculator is only one source of information and it is never a quote or offer from the lender. The Internet offers many reverse mortgage calculators from the different programs, which give information about different things. It is wise to surf online and to get data from several calculators to get a decent picture.
1. The Eligibility For The Reverse Loan.
The reverse mortgage calculator gives you the eligibility information, which is based on. the age of the youngest borrower, the appraised value of the home, the amount of the present mortgage and liens and the home type. The results vary depending on the state in question.
2. How Much The Borrowers Can Get?
The reverse mortgage calculator gives these figures based on the equity of the primary home. The maximum amount is set by the law and was confirmed to be $ 625.500, so that is the ceiling in all cases. The starting point is the appraised home value minus the usual mortgages and liens, so the question is about the equity, i.e. the own capital of the home. That is the guarantee to the loan.
Generally speaking the reverse mortgage calculator counts the amount based on the age of the youngest borrower, the appraised value of the home and on the interest rate level, which is an estimate. The older the youngest borrower, the higher the home value and the lower the interest rate, the higher is the maximum amount.
3. The Interest Rate Comparisons.
A senior can compare the lump sum amounts, interest rate influences and the costs of the different reverse mortgage programs. It is interesting to see the differences between the different companies and especially, what the special offers influence on the terms. Note, that the reverse mortgage calculators do not give information, which can be understood as offers.
4. A Senior Can Compare Different Payment Programs.
The reverse loan has no back payments during the running time, on the contrary the lender will pay to the senior. The alternatives are the lump sum, monthly payments, a credit line or the combination of all or some of these. Now it is interesting to see, how these figures behave in the different payment combinations.
5. Calculate How The Debt Amount Grows In The Different Programs.
It is impossible to forecast the future interest rates or home prices, but a senior can get a rough idea about the figures by using the best available forecasts about the interest rate development, if the variable rate is used, and about the home price development. Because the reverse loan eats the equity of the home, it is interesting to see, how much is left after the running time taking into account the home price developments.
As you see, the reverse mortgage calculator goes through the main data, which is needed for the reverse loan decision. It helps a senior to build a picture, whether this loan type fits to him or her and what the different payment alternatives mean as to the end result. However, the reverse mortgage expert, the counselor and the lender, will calculate the exact figures. The calculator data is the same, which a senior can use to ask quotes and final offers, because the shoppping is, what is the hardest currency.
