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Reverse Mortgages

By Wade Robins
If you are considering a reverse on your home as a means of helping fund your retirement 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 calculator.

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

The AARP Reverse Calcualtor
The AARP--American Association of Retired Persons--website has an extremely user-friendly reverse calculator; it generates more traffic than any other. The AARP reverse 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 calculator, you will be taking the first steps to determine if you want to pursue the reverse process.

The accuracy of the estimate you receive will depend on the accuracy of the information you give to the reverse calculator. Reverse mortgages are a form of financing entirely different from traditional mortgages, and while the AARP reverse 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 loan you have.

A good reverse calculator will be able to factor in information like the total amount of money you would like from a reverse 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

Limits Of Reverse Calculator
A reverse calculator no matter how clever, offers approximate amount estimates for national reverse programs, and cannot factor in cost variables in your area. Local lenders can add application, originating, closing, and termination fees or penalties 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.