| You've seen advertisements on television and in | | | | to administer your mortgage over the life of the |
| newspapers for reverse mortgages. You own your | | | | mortgage. Upon the closing of the mortgage, the |
| own home and are wondering, just how much can I | | | | service fee will be multiplied by your life expectancy |
| get on this type of mortgage? Reverse mortgage | | | | (converted to months). For example, if your life |
| calculators can be found in numerous websites. | | | | expectancy at the closing of the mortgage is 7 years |
| Almost every provider will have a calculator on their | | | | and the service fee is $30.00 then the service fee |
| website. | | | | charged would be 7 X 12 = 84 months then 84 X 30 = |
| Reverse mortgage calculators are simple to operate. | | | | $2520.00. This amount would be subtracted from the |
| You simply enter your birth date and/or your | | | | proceeds of you would receive in your reverse |
| co-owner's birth date. You enter the estimated value | | | | mortgage. |
| of your home and the zip code for the location of the | | | | Remember this type of program still has many of the |
| home. The last thing that you will enter is the amount | | | | closing costs that are applied to traditional mortgages. |
| remaining on the existing mortgage, if any. | | | | These fees such as origination fees, title search, |
| Once you have entered the information into the | | | | property appraisal and an escrow account will be |
| mortgage calculator it will calculate the amount of | | | | deducted from the amount you receive at closing. |
| funds that you are able to get. Typically, the more that | | | | If you are considering a reverse mortgage, a calculator |
| your home is worth and the older in age that you are | | | | will give you an excellent idea of just how much |
| the more money you will be able to obtain in a reverse | | | | money you will qualify for. The entries in the calculator |
| mortgage. | | | | are simple. The calculator will tell you how much |
| One factor that is not always shown in the reverse | | | | money your reverse mortgage will make available to |
| mortgage calculator is the monthly service fee set | | | | you. This will allow you to make an educated decision |
| aside. This service fee is typically $30.00 - $35.00 per | | | | on whether to take one out on your home. |
| month. This fee is what the lender estimates it will cost | | | | |