Financial Freedom Reverse Mortgage Calculator as Initial Assessment

Financial Freedom Reverse Mortgage Calculator as Initial Assessment

There are many components of reverse mortgage loan. With Financial Freedom reverse mortgage calculator, people can easily calculate their mortgage.

Reverse mortgage is probably a tempting choice, especially for retirees who do not have abundant amount of fund. However there are several issues that people need to consider before deciding on reverse mortgage. The plan may benefit some people on certain cases, but it may create discommode if is not handled well. People can use Financial Freedom reverse mortgage calculator to make initial assessment of this particular mortgage type.

Possible Advantages and Disadvantages of Reverse Mortgage


Before using Financial Freedom reverse mortgage calculator, people need to be more educated about this mortgage type. They need to understand concept of reverse mortgage and the way this mortgage works. There is government regulation related to reverse mortgage so people need to be informed about it too. In addition to that, people have to know the pros and cons of taking reverse mortgage so they can make better decision.

In reverse mortgage, borrowers are not required to make monthly payment. Instead they will receive payment from their mortgage company that comes from their home equity. Payment can come in the form of lump sum, line of credit, or monthly payment depending of circumstances. To get approval of reverse mortgage program that is insured by FHA (called Home Equity Conversion Mortgage or HECM program), borrowers must be at age 62 years old or older. Financial Freedom reverse mortgage calculator will estimate the amount of loan that borrowers will receive.

Reverse mortgage offers several advantages. It will definitely improve cash flow after retirement. People will not need to pay monthly installment for their mortgage. Extra funds that they have can be used for other purposes such as paying for health care and home improvements. It certainly helps people whose financial situations are not stable after retirement. Financial Freedom reverse mortgage calculator can calculate monthly or annual payment that mortgagor will get after considering other factors.

However it also has several disadvantages. People have to pay high fees when they are taking reverse mortgage. The fees incurred including closing cost, interest, insurance premium, and servicing fees for the mortgage company. Family will not be able to maintain the house that is subjected to reverse mortgage as it will be up for sale immediately after mortgagor passes away or moves out. If people are still interested in taking this mortgage after learning about its pros and cons, they can use Financial Freedom reverse mortgage calculator to make rough calculation of their loans.

Overview of Financial Freedom Reverse Mortgage Calculator


There are several data that needs to be filled when using Financial Freedom reverse mortgage calculator. People need to include their house’s appraised value which means how much the house is believed to be worth, usually determined by professional property appraiser. Currently, HECM loan limit is $636,150 so if a house values lower, owner is still eligible for this mortgage type. They also need to include homeowner and their spouse’s age in the calculation. It also calculates current mortgage loan balance that homeowner has.

There are several other things that have to be included in the calculation. Monthly insurance premium is currently at 0.5% and must be counted in mortgage plan. Costs that will be incurred such as loan origination fee, closing costs, initial mortgage insurance also need to be calculated. With Financial Freedom reverse mortgage calculator, the process is easy and borrower will get immediate result.

Iklan Atas Artikel

Iklan Tengah Artikel 1

Iklan Tengah Artikel 2

Iklan Bawah Artikel