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Reverse mortgage calculators offer an excellent opportunity to generate loan estimates and to get an idea of the possibility of how much money you will receive from a reverse mortgage. However, note the word estimate. These calculators are simply a tool to give you an idea of what you can reasonably expect to receive when you negotiate a loan.

In order to use a reverse mortgage calculator, you have to have some information first. Some of these calculators are simple, and only ask you questions like your birthdate, the birthdate of your spouse or co-owner of the home, the estimated worth of your home and the area code were you live.

Additional information may be asked such as how much your existing mortgage is and what your mortgage payment each month amounts to. More complex ones will ask you other questions, such as how much upfront cash you desire from the loan, the amount on any necessary repairs that maybe required, as well as a desired line of credit. (more…)

It may sound hard to believe, but one part of the mortgage market is hot: reverse mortgages. And that is giving older homeowners more options to tap the equity in their homes — but also opening the door to more confusion and mistakes.

Only a year ago, homeowners interested in reverse mortgages had little to choose from beyond the plain-vanilla, government-backed products that have long dominated the market. Such mortgages essentially allow homeowners at least 62 years old to sell a large chunk of their home equity back to a bank or other lender in exchange for a lump sum, monthly payments or a line of credit.

Now, nearly a dozen large banks and mortgage lenders have started reverse-mortgage products with lower fees and larger payouts. One lender has reduced the minimum age requirement to 60; others are making loans on second homes and vacation rentals. “Jumbo” reverse mortgages — for houses valued at as much as $10 million — are becoming more common. (more…)