Reverse mortgages, which are mortgages designed specifically for citizens who are 62 years or older, can be rather confusing to many people. Although the surface aspects of reverse mortgage loans are easy to understand, it is still difficult to determine how much money a person is eligible to receive. Also, many people would much rather have a basic idea of what they are going to be able to get from a particular reverse mortgage lender beforehand than to have to suffer through all of the sales pitches that will no doubt be thrown during an innocent inquiry
First of all, it’s important to know the basics of what a reverse mortgage is. Reverse mortgage loans differ from regular mortgage loans in two primary ways, the first of which is the fact that reverse mortgage loans are only available to citizens 62 years or older, and second of which is that the lender of a reverse mortgage loan pays the borrower, instead of the other way around (as is common with a regular mortgage loan). This means that people who have a reverse mortgage loan are actually paid in a one lump sum, monthly increments (assuming the borrower remains in the household as a principle location), periodic credit lines, or a combination thereof. The borrower is able to do what ever he or she wishes to do with the money. If and when the borrower becomes deceased, must move somewhere else for care by family or retirement home, or decides to sell, then the lender retains all the money made from the property’s selling amount as return for the reverse mortgage loan. If a person’s property sells for more than the loan amount due, then the borrower or heir(s) receives the difference, if the property sells for less than the loan amount due then insurance will cover the different.
For many people, it is hard to determine ahead of time how much money they are eligible to be loaned from a reverse mortgage lender. Luckily, there are reverse mortgage calculators located online, and on many different sites. Reverse mortgage calculators are a fast and convenient way for citizens interested in applying for a reverse mortgage to roughly determine how much money they can receive. For example, AARP’s website has a Reverse Mortgage Calculator, all that a person must do is enter in when he or she was born, when the person’s spouse or other coworker was born (if available), a rough estimate of how much the person’s house is worth, and the person’s zip code. Walla! Four simple questions and you have a better idea of what kind of amazing benefits you can receive from a reverse mortgage. Reverse mortgage calculators are usually incredibly accurate, and take barely any time to operate.
For more information please visit our website on Reverse Mortgage