Developed Plan For Using Reverse Mortgages
Seniors really need a plan customized to provide answer to their post retirement financial needs. These needs cover a wide range right from basic livelihood requirement to entertainment oriented requirement. Usually, most of the seniors rely on their little pension to fulfill their post retirement requirements. With this limited source of income they face problems while applying for loan. With world wide liberalization of banking services, seniors have managed to get loan on their home equity. In Florida, weak financial position of a retired senior leaves him or her to be largely dependent on old age allowance and that allowance is insufficient as it covers only one-third of his old age financial needs. In such circumstances, reverse mortgage provides them the best way to fulfill their old age requirements.
Seniors across the state of Florida have begun taking advantage of reverse mortgage programs more and more over the past 5 years. This increase in the popularity of the reverse mortgage is no surprise for those seniors that have been looking for viable ways to experience a more financially secure retirement. The funds seniors receive through reverse mortgage programs are often used for such important purposes as paying off existing mortgage debt to rid themselves of their mortgage payment; to maintain and improve their homes with a lump sum of cash; to create a monthly stream of income that enables them to afford a more comfortable lifestyle. There is no end to the usefulness of additional funds from a reverse mortgage.
How Florida Reverse Mortgages Make A Difference
A financial crisis can confront a person at any time during their lives. You possess the physical and mental capacity to bounce back in spite of major setbacks when you are young and earning. Old age can be a different story, especially after retirement from active service. If you have not saved for the rainy days, or in case the savings do not prove to be enough for a financial emergency, it can be a major crisis for an aged person. An asset like your own home, can at that time, prove to be a major blessing and help you arrange for finances when you need it the most.[caption id="attachment_6" align="aligncenter" width="300"] Best Reverse Mortgage Experts In Florida[/caption]
The most commonly known Florida Reverse Mortgage is the HECM also known as the Home Equity Conversion Mortgage. It is the oldest, and the most well known reverse loan program. Since 1989, Florida Reverse Mortgages are federally insured loans by the Federal Housing Administration (FHA), a part of the U.S. Department of Housing and Urban Development also known as HUD.
Under the HECM loan program, which accounts for most reverse mortgages made in the US, the origination fee equals 2 % on the initial $200,000 of maximum claim amount (lesser of the home value or county lending limit) and 1 % on the balance thereafter with a cap of $6,000. In addition to these two primary fees, you will also pay other standard closing costs associated with getting a mortgage, including title insurance, attorneys fees, recording taxes, etc
How To Use And Where To Find Reverse Mortgage Calculators
When looking for a reverse mortgage calculator, you should try to find one that utilizes all three types of reverse mortgage loan programs in giving you calculations.
The three types of loan programs include FHA loans, the Fannie Mae program, and HECM loans. This will cover all the basic reverse mortgage programs that you will come across.
How do you find a reverse mortgage calculator?
The best way of finding this type of mortgage calculator is online. There are non profit associations and others such as AARP that offer this service.
To get started, you will be asked to enter in some basic background information. Things like your current mortgage balance, if any. As well as current home value, liens against your home or current mortgage payment amount. This all goes into figuring out any reverse mortgage loan amount and the estimated payments you can receive.
Top Rated Florida Reverse Mortgage Counselors
Once you have an idea of the figures the reverse mortgage calculator has given you. You can then take the next step and talk with a lender or credit counselor.