Kosher Reverse Mortgage Calculator
Step 1: Enter Information About You and Your House
Who Gets Your Contact Information?
Property Value: Be conservative in making your best guess. The value used in the reverse mortgage contract will be based on a professional appraisal.
Property Zip Code: This is used to find the set of reverse mortgage loan providers who can deal with you. Many of them operate in only one or a few states.
Existing Mortgage Balance and Liens: Report the balance from your most recent financial statement. A reverse mortgage requires that you accept a new first mortgage on your home, which means that any existing mortgage or mortgages must be paid off with proceeds from the reverse mortgage. This will use some, and in some cases it might even use all of your reverse mortgage borrowing power. However, unlike your existing mortgages, the reverse mortgage will have no required payment.
Existing Reverse Mortgage Balance: The balance reported on your last monthly reverse mortgage statement.
Mortgage Insurance on Existing Reverse Mortgage: The amount of paid for mortgage insurance on the reverse mortgage your for your current reverse mortgage.
Savings Rate: This is the interest rate on the assets you liquate or on the loan you take out to purchase the house.
Years in House: This period is used to find the best combination of interest rate and settlement costs. The combination is selected that minimizes your reverse mortgage loan balance over this period.
Contact Information and Who Gets It
The professor gets it for use in connection with his ombudsman responsibility in the event that you select one of his certified loan providers and a problem arises. This rarely happens.
The certified loan provider you select also gets the features of the Kosher Reverse Mortgage you entered using the professor’s decision tools. This is a major time-saver.
Why are we asking for the name of the loan provider?
We want to develop a data base showing how different loan providers price their reverse mortgages. Such data could be enormously useful to consumers shopping for a reverse mortgage. But if you prefer not to disclose for any reason, you can leave the question blank.
Upfront Mortgage Insurance Paid on Existing Reverse Mortgage: The amount of upfront mortgage insurance paid on your current reverse mortgage can be found on page 2 of the HUD Settlement Statement or on the Closing Statement.
Options for Primary Financing Needs
Draw as Much Cash as Possible, at Closing or After 12 Months
Your major objective is to convert an existing loan balance that carries a mandatory monthly payment into a reverse mortgage balance that has no required payment.
Your major objective is to raise as much cash as possible, for investment or any other purpose.
Draw the Largest Possible Initial or Future Credit Line, With or Without a Cash Draw
Your major objective is to hedge the risk that your retirement funds will become depleted because you live too long.
Your major objective is to have a fund source for unknown contingencies and special occasions.
Your major objective is to stabilize income from variable sources by drawing funds when other fund sources are down, repaying when other sources recover.
Draw the Maximum Possible Monthly Payment For as Long as You Live in the House.
Your major objective is to supplement a deficiency in your retirement income.
Draw a Smaller Monthly Payment For as Long as You Live in the House, or for a Shorter Period, Plus a Credit Line.
Your major objective is to supplement your income for a limited period until some other income source kicks in.
Your major objective is to supplement your income, and also have a fund source for unknown contingencies and special occasions.
There are two ways you can receive help from The Mortgage Professor or one of his counselors. You can request someone to call you or you can send a question and someone will email you the answer.
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