Wednesday, November 23, 2011

Reverse Mortgage Calculator: Essential Tools For Future Borrowers

A reverse mortgage calculator is an online tool used to determine the payout one can expect to receive from a reverse mortgage. In addition to payouts, many calculators will also compute a borrower’s expected closing costs, interest rate, and mortgage insurance premiums. These tools are typically used to help borrowers determine whether they would be eligible for a loan, as well as how much they would qualify for should they choose to apply.

How to Use a Reverse Mortgage Calculator

To use a reverse mortgage calculator, borrowers will input their age, the estimated value of their home, zip code, and the remaining balance of their mortgage loan if applicable. The calculator will use this information to determine whether the borrower would qualify for a reverse mortgage loan based on his or her age and amount of equity.

Borrowers who would qualify for a reverse mortgage will be shown a few different options. In many cases, consumers will be shown how much they would qualify for through a fixed-rate HECM Standard, an adjustable-rate HECM Standard, and an HECM Saver. Consumers will also be shown how much they can expect to receive if they choose to accept their money in a lump sum, line of credit, or receive monthly payments.

Many calculators also calculate payouts based on a combination of payment options. For example, a person may want to receive a portion of their cash as a lump sum and the remaining portion as monthly payments. This is a popular option with borrowers who will be repaying their mortgage loan with a portion of their payout.

Consumers might also be able to calculate their expected interest rate, mortgage insurance premiums, closing costs, and loan origination fee. This is done to help consumers compare their estimated payout with the amount of money they can expect to pay for a loan. While fees can be rolled into a reverse mortgage loan, they are still important to consider. Any fees rolled into a loan must be repaid, plus interest, once the home is sold.

What to Remember When Using a Reverse Mortgage Calculator

While using a reverse mortgage calculator, consumers must understand that the calculations they receive are estimates. A reverse mortgage calculator will not be able to tell a consumer whether he or she would definitely qualify for a loan. These calculators are simply offered to give consumers an idea of what they might be able to qualify for.

Mortgage calculators are great tools for potential borrowers to use prior to applying for a loan. At first, reverse mortgages may seem overwhelming. There are not only several different loan and payment types, but borrowers are required to pay certain fees, closing costs, and mortgage insurance premiums. reverse mortgage calculators lay out a consumer’s different options, making them much easier to understand.

The goal of using a calculator is to understand how a reverse mortgage might benefit an individual. After using a reverse mortgage calculator, a borrower should come away with a better understanding of these loans, as well as their possible eligibility.

Monday, November 7, 2011

Are You A First Time Buyer Mortgage In Ireland

The Republic of Ireland is one of the greatest places in the world to live. The scenery is astounding and the people in the Republic are kind and generous. It is an amazing place to buy a home, so many first time buyers are flocking to the area in hopes of gaining their first home. The first time buyer mortgage is a little more cumbersome than the future mortgages will be, but the homeowner mortgage is something that many people desire to have.

It is important to note that most first time buyers do not keep their original mortgage for a long time. Often times the mortgage rates are higher, and most buyers tend to refinance as soon as they can. One must also understand though that this first homeowner mortgage is an essential step in building equity and getting comfortable in the home buying market.

There are different types of loan options that are available for a first time buyer mortgage. The most typical one of these is a 30 year fixed rate. This basically means that you will have the same mortgage payment every month for the next 360 months. This seems like a long time, but this is an expensive investment, so many people need that long to pay off the home. Remember too that refinancing is an option, but the 30 year fixed is the most common mortgage across the globe. Many people may be able to also reduce the number of years that they sign up for with their first mortgage. There are 25, 20, 15, and 10 year mortgages as well. This lowered amount of months means that you will save a lot of money in interest over the life of the loan, but it also means that your monthly payment will be substantially higher. There are many other types of loans available, but the fixed years and rates are usually the main types that first time buyers can receive.

The down payment is another important part of the buying process. It is estimated that buyers put 20 percent down on the cost of the house. This down payment comes off of your mortgage so your rates will be lower each month. This also means that your interest will be lowered, but it does not mean that the interest rate will be lower. The bigger the down payment that you can make; the lower your monthly payments will be. The Republic of Ireland has a ton of great homes to choose from, so start saving up some money for your first home right now.

The first time buyer mortgage is going to give buyers the opportunity to get their feet wet in the housing market. The mortgage will be standard, but remember that you will have to pay for any taxes, closing costs, and any other related fees. These can sometimes be rolled into your overall mortgage cost, but that is not always the case. You will have to talk with your lender to get the specific details. A homeowner mortgage is attainable, but you have to get your finances in order and be prepared for a long process. The Republic of Ireland has homes to buy, so first time home buyers should take the chance to get into this pristine and special area.