Instant Online Reverse Mortgage Internet Calculator
Getting instant online reverse mortgage quotes is not that hard. It is not difficult to get an instant quote from the Internet, simply surf the internet through the various com, org and net sites until you find a professional looking calculator form. The more difficult part involves understanding the different terms that reverse mortgage companies may or may not use on their online calculator.
Seniors can use a reverse mortgage loan internet quote calculator to obtain the following information: (a) if they qualify for reverse mortgage, (b) the amount of the mortgage, and (c) how they can receive the money.
Out on the web, a reverse mortgage quote calculator should be compared to at least three other quotes from different calculators. Loans should typically be compared beside one another on the screen. The problem arising from the comparison would be the different reverse mortgages terms used by each loan program. Although different programs have variations in their terms, there are standard and well-known terms within the reverse mortgage industry.
Knowing the basic terms and definitions used in the reverse mortgages industry can help seniors make informed decisions when taking out a loan. This is easier to do than navigating the WWW jungle with its whole gamut of .com, .org and .net web sites.
- Index and Interest Rates
Interest rates on reverse mortgage loans take their cue from either of two indexes: the six-month Treasury Index or the LIBOR. A lender takes his profit from the margin between the index and expected interest rate on the loan. Expected interest rate is the interest rate that will be charged to your loan for the long term.
- Interest Rate Cap
This refers to your starting loan interest rate plus a certain number of points.
- Credit Line Growth Rate
You can see this on your instant internet quote if your mortgage includes a line of credit. The term refers to how much (in percentage rate) your credit line will increase every year. It is similar to having your credit line automatically increase your credit limit.
- Mortgage Insurance
This reverse mortgage insurance is a standard issue in the industry and does not vary from one lender to another. The effective rate for all reverse mortgage products is 0.5%.
- Estimated Home Value
This simply refers to how much the lender thinks your house is worth. This figure is easily adjusted through an actual appraisal of your home.
- Principle Limit
This is the gross loan amount that your potential lender is willing to offer on your home. This is based on your age at the time of loan application.
- Monthly Service Fee
This is the fee charged by the lending company to cover the cost of keeping your records, maintaining a call center for support services, and the postage and handling of your monthly statements.
There are other terms that might or might not go into your reverse mortgage quote calculator. Senior citizens are advised not to rely on online www web calculator quotes alone. They should also seek the advice financial planners and specialists just to make sure that the reverse mortgage is in their best interests and that they’re getting it at the best interest rates.
Remember getting an instant online reverse mortgage calculator quote is as easy as surfing the www land of com, org and net web sites.