#Wells fargo amortization calculator free

In most cases, term payments are significantly higher than tenure payments, because the lender does not know how long you'll be in the house, and must therefore be conservative with your loan amount. Matt and Cindy have two monthly payment options - 'tenure' payments for life or 'term' payments for a specific time period - in their case, the ten years in which they expect to occupy the home. They're 73 and 70 and expect to live in their home 10 more years. Their Social Security income is only about $3,000 a month, and some extra income would really improve their lifestyle. Recasting calculator will show you whether recasting is a good option and how much interest payment you save by recasting your existing mortgage.

#Wells fargo amortization calculator free

Their home, which they own free and clear, is worth $400,000. Mortgage Recast Calculator is used to calculate how much you can save each month by recasting your existing mortgage. Matt and Cindy are house-rich and cash-poor. Now let's look at a situation where the homeowners are house-rich and cash-poor.ĮXAMPLE WHERE THE REVERSE MORTGAGE DECISION IS BASED ON REMAINING TIME IN HOME ** If unused, HECM credit lines grow at the loan's variable interest rate.

*Elimore's property may be worth $300,000, but it's subject to a $80,000 loan. Unused, the line of credit will grow over time.

She can get a line of credit and use the initial disbursement for her mortgage, repairs and trip, and tap the remaining unused line after 12 months.After 12 months, she can tap the remaining funds if other expenses or travel opportunities come up. She can borrow a lump sum at a variable rate, which pays off her mortgage and covers repairs and her vacation.She can take a lump sum payout at a fixed rate, which zeros her mortgage and leaves her funds for home repairs and travel.

Several payment options can accomplish her goals: She lives very simply but would love to take a trip to visit some grandchildren she's never seen.Ī HECM frees Eleanor from mortgage payments, which should stretch her limited income further and improve her quality of life. The property also needs $10,000 of repairs, which she can't afford. Now let's look at an example where the reverse mortgage choice is not so clear.ĮXAMPLE WHERE THE REVERSE MORTGAGE DECISION IS COMPLEXĮleanor, a 75-year-old widow, is under financial pressure, because she still has an $80,000 mortgage on her $300,000 home. **If unused, HECM credit lines grow at the loan's variable interest rate. *Any property value greater than $625,500 is calculated at the HECM maximum value.