Need Mortgage Refinance

‘Reverse Mortgage Calculators’ such as the AARP reverse mortgage calculator help you to find out the amount of money you can raise against your home if you are 62 years or older, this is a different kind of mortgage aimed primarily at Americans who have retired and have some equity in their home that they want to release in order to make life a little more comfortable for themselves financially.

The principle behind a reverse mortgage is fair enough, it gives you access to funds without having to sell your house or having to take out another loan against your property for which you would then have to make monthly payments. With a reverse mortgage there are no monthly repayments to make.

But be aware that the mortgage lenders would not be offering the mortgage unless there was something in it for them. In this case what happens is, because you do not make any payments, the capital value of the loan increases year on year as the interest you would have paid is added to the amount you borrowed.

Typically that amount is not allowed to exceed the value of your home so in practice once the current value of your home is equal to the loan amount then no further funds will be available and of course if that happened then there would be funds from the house left as part of your estate. That is of course the worse case scenario but there will always be some cost involved when repaying the loan and the house is the security for that loan so the loan company get first dibs.

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