Monday, April 7, 2014

A Reverse Mortgage Calculation



Reverse loan calculators can provide a basic estimate of the amount of equity that a borrower can access. Here are two examples of A $200,000 home value at age 62 & age 75 documenting both HECM.

  • $200,000 Value /62 Borrower age
  • Fixed HECM"Standard" Max Loan $123.800
  • 62% of Value
  • Lien Payoff $25,000
  • Loan Cost $9,500
  • Funds Available = $89,300
  • Fixed HECM "Saver" Max Loan $104,600
  • 52% of Value
  • Lien Payoff $25,000
  • Loan Cost $5,500
  • $200,000 Value / 75 Borrower age
  • Fixed HECM"Standard" Max Loan $138,600
  • 69% of Value
  • Lien Payoff $25,000
  • Loan Cost $9,500
  • Funds Available = $104,100
  • Fixed HECM "Saver" Max Loan $112,400
  • 56% of Value
  • Lien Payoff $25,000
  • Loan Cost $5,500

Article Source: http://EzineArticles.com/7592204

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