reverse mortgage calculation example

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John takes out a Tax Free* Reverse Mortgage and takes a lump sum of $55,000 and applies it to his existing mortgage and eliminate the mortgage and the monthly payments. After paying the mortgage off entirely, John’s monthly cash flow rises to $1,691.

for any reason within three business days after you receive reverse mortgage counseling; or any time before your account is opened if any of these terms (other than the APR) change. Account opening fees loan origination $ 4,735. Inspection $ 500. Title Search & Title Insurance $ 595. Appraisal $ 295. Reverse Mortgage Insurance Premium $ 5,500

It is important to note that reverse mortgages are designed so that the amount owed cannot exceed the value of the home. If, for example, a reverse mortgage balance is $150,000, and the house is sold for $125,000, the borrower does not owe the difference.

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Reverse Mortgage SCENARIO EXAMPLE #1 John Bosworth, Age 68 Home Value – $250,000 Home Equity – $210,000 Approximate Mortgage Balance – $40,000 John is a widower who lives at home alone. He would like to keep his home, but is having trouble making payments and meeting expenses. His monthly mortgage payment is $611.

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Reverse Mortgage Facts: It is a loan. The borrower must own the home, live in it and be at least 62. access cash when needed. Loan estimates are free. In just a few steps, access your reverse mortgage estimate, as well as tools to help you.

 · Reverse Mortgage Age Chart Example: As you see to the right, if you are age 62, then you can borrow 52.4% of the value of your home. Hence, if your home is worth exactly $100,000.00, then you’d be able to borrow $52,400.00.

Example of How a Reverse Mortgage Works. They currently owe $35,000 on their mortgage. Below is an illustration of how John and Anne spend their loan proceeds.* This example is based on Anne, the youngest borrower who is 68 years old, a variable rate hecm loan with an initial interest rate of 4.032%.

This reverse mortgage calculator has two parts. In Step 1, basic information like property value will be used to evaluate whether or not you are eligible for a reverse mortgage. In Step 2, you can enter additional property information to determine how much you may be eligible for.