Abstract:
AARP reverse mortgage has a calculator, which helps in finding out exactly how much money an individual is entitled to receive. The calculator also helps in ascertaining the costs associated with the reverse mortgage program.
Characteristics of AARP reverse mortgage:
Not all individuals are eligible to receive the benefits of AARP reverse mortgage loan amount.
As a prerequisite, the intending borrower is required to have attained 62 years of age for qualifying as a reverse mortgage borrower. In addition to that the house has to be his main place of dwelling and he should be the owner of that house.
AARP reverse mortgage calculator:
The AARP reverse mortgage calculator reveals various facts about the reverse mortgage norms. The reverse mortgage calculator states as to how much money can actually be availed by an applicant should he opt for a reverse mortgage loan.
Difference with forward mortgage loans:
There are marked differences between a traditional mortgage loan program and a reverse mortgage loan program. Some of the prominent differences are given in the table below.
Table Showing Dissimilarities Between Forward Mortgage Loan And Reverse Mortgage Loan
| Traditional mortgage loans |
AARP reverse mortgage loans |
| Also known as forward mortgage loans, there is no age restriction for availing a loan. |
The borrower is required to be at least 62 years and above. |
| Repayment of loan is on a monthly basis |
Repayment of loan is after the death of the borrower or relocation of the borrower or if the house is transferred to another person. |
| Fear of losing the house if monthly installments are not paid. |
No fear of the house being confiscated. |
| No counseling sessions are required |
Counseling sessions are made mandatory for the borrowers. |
| Expenses related to mortgage loans are less expensive |
Comparatively more expensive |
| Equity in the home increases as debt amount decreases |
The interest rates and other fees charged on the reverse mortgage loans accumulate and are required to be paid at the end of the loan tenure. |
| The outstanding amount decreases over the years, hence forward mortgage. |
Outstanding amount increases over the years |