Top Five Reverse Mortgage lenders

Screenshot from December 12th, 2011

The Internet is a good place for consumers to find out more about products they’re interested in. But it’s important to be selective when researching on financial products, and seek advice of a trusted resource. Reverse mortgages are no exception.

Many websites offer free “reverse mortgage calculators” that allow consumers to enter home and personal information and calculate whether they’re eligible for a loan, and if so, how much of their home’s equity they’d be able to access.

Some reverse mortgage calculators also detail the different ways consumers can tap into their home equity, either through a fixed or adjustable rate loan, or through the home equity conversion mortgage (HECM) Standard or Saver programs, both of which are insured by the Federal Housing Administration, but which come along with different fees and expected loan amounts.

Screenshot of They also typically break down how much a borrower would get if they were to receive their reverse mortgage funds in lump sum, a monthly payment, or a line of credit.

Many lenders provide calculators on their websites, but some are hosted by third parties who may pass along information to lenders. It’s important to use caution when these sites ask for your contact information if you do not want to receive any follow up information.
Here are several different reverse mortgage calculators that can help you decide if a reverse mortgage is the right option for you.

1. AARP’s calculator

This calculator from the trusted senior advocacy organization is fairly simple: consumers enter their zip code, date of birth, the co-owner or spouse’s birth date, and their home’s value.

Screenshot of The calculator then determines how much of the consumer’s home equity can be borrowed against, and breaks it down into three ways a borrower could choose to access their equity: through a HECM Standard fixed rate, where an interest rate is locked in and remains constant throughout the term of the loan; a HECM Standard LIBOR (or adjustable rate); or a HECM Saver LIBOR.

From there, the calculator also details how much money a borrower would be able to receive through choosing a lump sum option, monthly payments, or through a line of credit.

2. All Reverse Mortgage Company’s calculator

This reverse mortgage calculator is an example of those hosted on reverse mortgage lenders’ websites, and it’s a little more detailed than AARP’s. Consumers are asked to enter their zip code, mortgage balance (if any), home value, name, and date of birth for themselves and any co-owners.

With that information, the tool provides five different options of what the loan would look like as: a HECM Saver lump sum at two different rates; a HECM Standard lump sum at a certain rate; a line of credit plus a monthly payment plan with a HECM Saver; and a line of credit plus a monthly payment plan for a HECM Standard.


Less sanctimonious take on EU crisis

2011-07-07 15:04:36 by Tek_Jansen

Spain has received most of the attention, thanks to its ten-million strong turnout – reportedly half the entire labor force. Holding its first general strike since 2002, Spanish labor protested against its socialist government using the bank crisis (stemming from bad real estate loans and negative mortgage equity, not high labor costs) as an opportunity to change the laws to enable companies and government bodies to fire workers at will, and to scale back their pensions and public social spending in order to pay the banks more. Portugal is doing the same, and it looks like Ireland will follow suit – all this in the countries whose banks have been the most irresponsible lenders

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