Use reverse mortgage calculator for the amount of mortgage

A reverse mortgage loan is secured over residential property and it enables the borrower to access the value if property. The house remains with the borrower and cannot be taken away from him even if he fails to pay the loan until and unless they leave the house. You don’t have to pay monthly mortgage payments and they can live in the house with no mortgage payments but he has to pay other expenses of the house. When the borrower leaves the house or sells it loan is paid.

A reverse mortgage calculator is used for calculating for how much you can borrow or what it will cost you. For using this calculator you should enter the details given below:

·         Age: more the age more equity you get

·         Value of property: you can borrow the money off your property’s value. If you are not sure you can estimate the value of your house.

·         Estimate of your property’s future value: you can choose low, medium or high percentage or value of your choice according to the future value of your property

·         Interest rate: add the interest rate in which you are interested

·         Payment options: get money in lump sum or regular monthly

Reverse mortgage is of three types:

1.    Single purpose reverse mortgages: these are offered by some states & local government agencies

2.    Proprietary reverse mortgages: these are private loans

3.    Federally insured reverse mortgages: these are known as Home equity conversion mortgages (HECMs)

The home equity conversion mortgages (HECM) enables you withdraw some of the equity of your house. You can select how to withdraw your funds, whether they are a line of credit or in a fixed amount or combination of both.

HECM is also known as reverse mortgage. It is a federal housing administration (FHA) insured loan that enables seniors to access a portion of their house so that they can obtain tax free funds without having monthly mortgage payments.   

These days most of the reverse mortgages are insured by the federal housing administration through its home equity conversion mortgage program. Some of the lenders also offer proprietary reverse mortgage these are designed for borrowers who have higher income. HECM is used to pay mortgage insurance premium so that they can cover all the losses.