Reverse Mortgage Calculator

The Reverse Mortgage Calculator is a system designed by the Federal Housing Administration that determines a senior homeowner's eligibility for a reverse mortgage loan. The proceeds available to you are based on the youngest borrower and your home's property value.

The reverse mortgage calculator shows the effect of decisions you make about how much you borrow and the type of reverse you choose, whether you take an initial lump sum, or arrange regular income payments or a combination of both, how long you borrow for and interest rates and various fees.

It also shows how your home equity may be affected by future changes in the value of your home.

Age is factored into the equation through life expectancy tables. Meaning the older the borrower is, the more money they are going to qualify for starting from the youngest age eligible of 62 going all the way up to a 100 year cap for the table. In the case where a borrower is over the age of 100, they would qualify for the same amount as a 100 year old because that is where the tables stop. Next the interest rate is taken into consideration. There are two interest rates disclosed for the adjustable-rate, reverse mortgage loans. The interest rate that is factored into the equation is known as the "expected rate". This rate consists of the 10 year index (which is variable) plus the borrower's margin. The fixed-rate, reverse mortgage rates are disclosed exactly like traditional mortgages.

The higher the rates are at the time the calculator is run, the lower the overall total amount to a borrower will be. There is however a floor rate. Any interest rate below this floor rate will no longer increase the amount of proceeds available through the reverse mortgage. Lastly, the borrower's home value or government lending limit is factored into the equation. Based on a borrower's age and the interest rate available they will be eligible to receive a percentage of this final value. This percentage available can range from somewhere around 50% to sometimes as high as 80%.
One other function is to calculate the Mortgage Insurance Premium, loan origination and miscellaneous third party closing costs that are financed through the Reverse Mortgage Transaction. The calculator is able to figure these numbers very easily because the Reverse Mortgage program is government insured and regulated and there are set fees on these loans.

These simple examples stress the need for you to get solid, independent advice from a trusted source who can take into account your needs and circumstances. If you're considering a reverse mortgage, shop around. Compare your options and the terms various lenders offer. Learn as much as you can about reverse mortgages before you talk to a counselor or lender. That can help shape the questions you ask that could lead to a better deal.

A reverse mortgage can provide money when you need it. Make the most of your retirement with a reverse mortgage, Feel free to call us at 800-630-0650 and we will have an experienced Senior Advisor to help you spend a secure and comfortable retirement in the home you've grown to love. We've helped thousand of senior homeowners secure their financial futures , it's time we help you.

Tim Jacobs
Golden Years Mortgage Solutions
Your Money...When You Need It
www.GoldenYearsMortgageSolutions.com
(800)630-0650
tim@goldenyearsmortgagesolutions.com

Tim Jacobs @ Golden Years Mortgage Solutions www.GoldenYearsMortgageSolutions.com (800)630-0650 tim@goldenyearsmortgagesolutions.com Golden Years Mortgage Solutions is a reverse mortgage approved FHA Lender. We've helped thousands of senior homeowners solve their financial problems. Our agents and brokers collectively have over 60 years of experience in Reverse Mortgage Loans and general financial services, including managers who are industry pioneers with more than 12 years of reverse mortgage experience. Our dedication to providing financial solutions for seniors is evidenced by the number of referrals that come from our existing clients.