Juling Gabas asked:




For most people, their biggest question when planning to calculate a mortgage is a mathematical mortgage formula . And the biggest reason for this is for these homebuyers to have an idea of what will be their monthly payments. But one thing they forget is how to qualify for a home loan. This formula can only give you a rough estimate or calculations of the basic possible monthly dues. So is the question of how much you can afford to borrow the real purpose you need a complex mathematical mortgage formula?

If you are really looking for the mathematical mortgage formula , then you need a good understanding of mathematics and equations. It is actually a complex set of equations before you can arrive at the solution. What you need is something more efficient and easy to understand for the layman. So when you are talking about mortgage formulas, you might as well use home loan calculators which are very easy to use. Most of the gadgets of calculator tables can easily be access through the internet and they are free to use.

It is not hard to find these calculators on the internet. Once you find one of these home loan calculators you can start putting your assumptions. Meaning all you need to do is trying different scenarios based o the figures you are qualified for. You can make assumptions of the interest rates and the amount of the property as well as the number of years you want to pay off the home loan. A lot of people who as many assumptions as they can to have a better idea of what is the best that will suit their budget and circumstances. It is very important to stay within what you really can afford otherwise you will find yourself in an awkward predicament if things go for the worst.

A very simple mathematical mortgage formula will require you to determine first what the current prevailing average mortgage rate is. What you can do is simply gather the lenders different rates, add all of them and the sum will be divided by the number of lenders rates. For instance, you inquired from three lenders and their rates are 3, 4, 5, add all these numbers which will be 12, then you divide it by three and comes to 4 percent. That means your average rate will be four percent. You can use your ordinary digital calculator at home especially when dealing with decimal points.

Then now you have to apply it the amount of property you are looking to purchase. For example you planning to purchase a 500,000 dollar house, this is how it will look like;
500,000 times 4 percent equals 20,000, and then you divide 20,000 by 12 months which would equal to 1,666.67 which will be your monthly payments. This is if you are doing it manually, but the best thing for you to do is to go online and search amongst the many mortgage calculators that can easily provide you with the answers.

A real mathematical mortgage formula is actually a complex type of formula and it will not be ideal for the ordinary people. It involves equations that are better left with the mathematicians. So the easiest way to do is to use mortgage calculators online which are a lot faster and easier to use. It would make your life a lot easier and will not be stress out calculating it manually. An online calculator will do the calculations for you.

Megan

Rose asked:


You have toiled hard in your younger days and now that you are bound for retirement, you might think there are no other ways to earn money aside from your retirement fees. This is often a common predicament among senior citizens who are retired from their employment but still want to be more productive as long as finances are concerned.

Reverse mortgage for home purchase is a government-insured mortgage loan given to qualified applicants in order to give financial assistance in terms of home purchase and investment in real estate. Furthermore, this outstanding mortgage loan has certain twists that you can never find in usual mortgage types and categories.

First and foremost, one of the most uniquely beneficial features of reverse mortgage is that borrowers are not obliged to pay their monthly dues unlike the usual trend in home mortgage. In fact, they are the ones to receive payment in forms of tax-free income which they have the freedom to use in other purposes and ventures.

How to qualify for reverse mortgage?

Those who wish to acquire reverse mortgage loans will not experience the same tedious requirements that most mortgage plans imposed on their applicants such as credit reports and the like. There are basic things that applicants for reverse mortgage must comply with in order to be eligible for the loan.

First is that applicants must be from 62 years old and above as this mortgage plan is made to cater especially for seniors and retirees. The types of housing units are likewise listed under the scope of reverse mortgage which actually gives borrowers the luxury of choosing among a wide range of houses from single-detached residences, multi-unit houses, single unit in a multi-unit building, townhomes and condo units among others. This is a great opportunity for seniors to make their own preferences and choose what kind of dwelling place they wish to enjoy as a reward for all their hard-work.

Another requirement to be eligible for reverse mortgage is that any residential units or properties purchased through this type of loan must only be made primary residences and not as vacation homes or rental units. Basically, borrowers are already granted financial assistance through non-payment of monthly mortgage dues and they even receive monetary incomes for the said loans, thus in terms of economical reasons for their purchase, they are actually receiving a lot.

In terms of occupancy, borrowers are required to stay and remain in the residential unit they purchased using this loan program within 60 days of closing and onwards. Their benefits and incentives are granted provided that they occupy the residence. For those who decide to leave the premise or the property, they would have to pay for the dues incurred during the process of acquiring the reverse mortgage home loan and the acquisition of the residence as well.

The federal government has indeed created a remarkable regulation through reverse mortgage that ensures not only income-generating options for seniors but also provides them the chance to purchase their dream home to enjoy the fruits of their labor.



LUIS