Understanding The Home Mortgage Calculator

When you have finally decided to take that plunge into home ownership, it can be a scary and exciting time and you may be worried if you are really able to afford it. But then again, there is that part of you who is thinking you can't afford not to buy a home. So, where is a good place to start in figuring out what you can and cannot afford? Your best bet is to really figure out what your bring home monthly income is and then use a home mortgage calculator to determine what you have going out in expenses versus what you have coming in with income.

Entering in the price of the house, including taxes and insurance as well as the number of months of the loan and the interest rate will return a monthly payment amount. Additionally, most home mortgage calculators will allow for input of a down payment, where different amounts can be entered to show how adding a couple of thousand to the down payment will trim dollars from the monthly payment. Playing with the variables allows a potential home buyer to look at all the options quickly and easily, helping them determine if purchasing the home is a viable option. The only real problem with using mortgage calculators to calculate a monthly payment is the interest rate that particular user may be paying. If something in their past gives them a lower credit score, they will need to know how much they will be charged to make the figures more accurate.

If you are desperate to buy a home and really need to find a way to make it work, make sure you take a really close look at your expenses that are eating up your money each month. Are there things you can let go of? Are there things that you can make cut backs in? And make sure when using a home mortgage calculator, whether or not it is including the figures for your home owners insurance and for your property taxes as these are bills that cannot be let go of and should never run behind. Generally, loan  calculator will have a spot to place an estimate for those but you just want to double check.

Also, you may want to consider seeing what help is available for down payment and closing costs as the more you can place as a down payment, the lower your monthly mortgage payments will be. You will see, if you play around with a home mortgage calculator, how much of a monthly difference it will make for you the more you are able to put down. So, as for down payments, you want to be able to input the most realistic down payment amount in the calculator in order to get the best result.

To get more info on reverse mortgages and loans go to Reverse Mortgage Quote

 

Jumbo Reverse Mortgage Makes Sense

Reverse Mortgage Video

Unlike a regular (or forward) mortgage, where you have to make monthly mortgage payments, with a reverse mortgage you borrow money, but do not have to repay the loan until you either sell the property or die. At that point, the lender is repaid the principal and all of the accrued interest. Reverse mortgage rates vary according to the market. However, closing costs are significantly higher with reverse mortgages. 

Lenders recover their loans plus interest from the sale of the home when owners die or move out. Lenders will work with you to determine a mortgage rate, as well as decide if you will need any mortgage insurance or a second mortgage. It is a good idea to shop around for a good reverse mortgage quote from a lender or mortgage company, as every institution will offers different mortgage rates and mortgages.

Lenders may pay HUD-approved counseling agencies for counseling services, through a lump sum or on a case by case basis. The lender payment may be made directly to the counseling agency or disbursed at closing by the settlement agent.

In fact, you don't even have to repay the loan until you move out of your house, sell, or die. Whatever debt is left on your house is settled with the proceeds from the sale of the home. With a reverse mortgage, your debt accumulates as the bank doesn't collect the payments till the loan period ends or you or your heirs sell.

When you get your reverse mortgage quote, know that the reverse mortgage can be set up as a lump sum payment, a line of credit, or paid in monthly installments. Homeowner has three business days after signing papers in which to cancel the loan. Upon expiration of this period, the loan funds are disbursed.

Essentially, a reverse mortgage is a way to borrow against the value of your home without having to move out or take on additional debt payments. It's a way to give yourself extra income, pay off unexpected medical bills, come up with the cash to visit the grandkids more often, make repairs to your home -- in short, you can use the money for anything you want.

Reverse mortgage rates are not different form traditional mortgage rates, and when you are applying for a reverse mortgage you should make every effort to find the lowest reverse mortgage quote you possibly can.

More info on reverse mortgages can be found here FHA Reverse Mortgages