Understanding reverse mortgage and its calculation

Using a passionately dreamt about and acquired home as security to obtain a loan, is not the easiest decision to make. But taking this credit to support medical expenses or college fees or to repair or expand the property, might be unavoidable sometimes. In fact, it can also be a source of income, because as the name suggests, reverse mortgages are where the lender pays the borrower.

Let us learn a few important formal terms in order to understand the concept of the reverse mortgage.

Home equity: The amount of money that one would receive if they sold their house, after paying all their debts on it. For example, assuming a property is valued at $1,000,000, if the uncleared dues against it are for $200,000, then the home equity would be $800,000.

Equity loan: A borrowing against the value of the home. The value of the home after having paid off all mortgage or other charges relating to it is only considered. This is done as an assurance to the lender that the money borrowed will be repaid.

In the example mentioned above, the equity loan eligibility would be for $800,000.

Reverse mortgage: A financial agreement in which a homeowner surrenders equity in their home, in exchange for regular payments.

Again, using the same example, a reverse mortgage would be giving up ownership of the house in exchange for periodic returns on the $800,000.

Returns on these loans can be a fixed monthly payment or a line of credit (LOC). LOC is a deal between any official financial institution like a bank and the borrower, where the maximum amount that a debtor can acquire against the loan is specified.

A direct mortgage insurance premium, origination fees, appraisal fees and other standard closing costs are involved in the calculation of the reverse mortgages. You could check for the reverse mortgage rates and use reverse mortgage calculators for accurate calculations. Evaluating the remaining home equity balance after a particular number of years or the outstanding loan balance after computing interest rates and such is possible with the help of free online loan calculators. Use it as a guide to your financial planning and investing.

YOU MAY ALSO LIKE

  • What are the Normal PSA Levels as Per Age
    Prostate-specific antigen (PSA) is a chemical protein produced by the normal as well as malignant cells of the prostate gland. Higher PSA levels may raise the chances of prostate cancer, a noncancerous ailment such as prostatitis or an enlarged prostate. In most cases, men with PSA levels below 4 ng/mL (nanograms of PSA per milliliter of blood) bear a minimum risk of prostate cancer. Also, men diagnosed with prostate cancer usually have PSA levels higher than four. However, this is not an established fact and cancer can occur at any PSA level. Understanding the PSA Levels Chart Usually, a lot of experts consider PSA levels under 4 ng/mL to be normal. However, owing to some modern conclusions, a lot of experts now recommend dropping the cutoff levels to less than 2.5 or 3 ng/mL as a limit for normal values, particularly in the case of young patients. It is because younger patients have smaller prostates and consequently lower PSA values. Therefore, PSA levels greater than 2.5 ng/mL can be a reason for apprehension. To determine if you conform to the normal PSA levels age chart, a PSA test is conducted. What is a PSA Test? The PSA test is a blood test that measures the PSA levels in a person’s blood. It is conducted for detecting prostate cancer and for monitoring its treatment. PSA is only produced by the male prostate gland. In rare cases, it is found in some breast tissues in women. Hence, prostate cancer is mostly found in men. PSA is released into the semen, where it serves to liquefy the semen after ejaculation. Most of this PSA is ejected from the body via semen, but a very small amount of it enters the bloodstream. So normally, PSA is found in small quantity in the blood. Normal PSA Levels Age Chart As per the PSA levels chart, the normal range tends to increase with age. Higher PSA levels generally serve as the first indication of prostate cancer. After the blood test analysis, the resulting levels show much of the chemical is being produced by the body and the probability of being diagnosed with prostate cancer. As per the PSA levels chart, the age-specific reference ranges for PSA are as follows:
    • 40 to 49 years 0 to 2.0 ng/mL in Asian Americans and 0 to 2.0 ng/mL in African Americans.
    • 50 to 59 years 0 to 3.0 ng/mL in Asian Americans and 0 to 4.0 ng/mL in African Americans.
    • 60 to 69 years 0 to 4.0 ng/mL in Asian Americans and 0 to 4.5 ng/mL in African Americans.
    • 70 to 79 years 0 to 5.0 ng/mL in Asian Americans and 0 to 5.5 ng/mL in African Americans.
    This PSA Levels Chart helps in understanding and determining the diagnosis of your PSA test. However, it is important to note that higher results do not necessarily mean you have prostate cancer. It just indicates a greater risk of developing it.
  • Toyota Sienna in its Generation 2 stage
    The minivan that was launched from Toyota’s stable to replace its popular, Previa, the Toyota Sienna soon acquired great popularity with its built-in safety features and high output variable valve timing units, saw the second wave of popularity as it took on its new avatar as the Toyota Sienna XL 20 in 2003. Its designer took his family on a road trip across the length and breadth of the United States to identify all possible design and engineering flaws. The result was the upgrade Toyota Sienna XL 20 which featured an upgraded five speed transmission V6. A major change from the previous generation of Toyota Sienna models was the inclusion of fold-flat third row seats that offered users the option of stocking and transporting even large pieces of equipment or materials. The overall car volume was increased by 45% while the volume of cargo space increasing by 39 %. The XLE Limited Model came to be known as just ‘Limited’ and new features included memory function for driver’s power seat, power folding side view mirrors and a power folding third row seat. Other features that were made pretty much standard across all models of the Toyota Sienna in this generation included a remote keyless entry, high solar energy absorbing glass on the front windshield and all windows, tilt and telescopic steering wheel and a towing capacity of up to 3500 pounds. Another feature in this generation of the Toyota Sienna was the all-wheel drive. A variety of other upgrade options were available on the higher trim models including parking sensors, a convex rear view mirror, voice activated navigation system with a backup camera and DVD entertainment system for rear seat users. The Toyota Sienna XL20 scored well on the NHTSA crash test ratings. Apart from the front mounted side torso airbags, all models in this generation of the Toyota Sienna came fitted with side curtain airbags for all the three rows. Subsequent models in the generation came with a standard vehicle stability control feature. The models per se didn’t under go any major design or engineering re-vamps until 2010, its final model year.
  • Buying Xbox One console online
    Xbox One is a revolution in the gaming world. With the detailed specifications and configurations, one does get baffled as to which is the best console to go with. From monthly updates to inevitably scraping Kinect as a compulsory peripheral, the Xbox One has come a long way with ever-evolving features. Purchasing Xbox One console online might be a tedious job but here are a few handy tips that may help you find the right bet. Types of Xbox One console available online When you are purchasing Xbox One console online, you will find that there are two types of these namely X Xbox One and Xbox One S. The Xbox One S features ultra HD Blu-ray and video streaming, high dynamic range, a smaller console and storage space up to 2TB. On the other hand, the Xbox one console comes with motion control, is Blu-ray compatible, and starts with a storage capacity of 500 MB and goes up to 1TB. The Xbox One gives you the benefit to play the Xbox 360 games on this console. So, once you are looking to buy Xbox One console online, research before you seal a deal. Read on the user experiences and reviews One of the most important things to do before purchasing an Xbox One console is to read the customer reviews and experiences. Some of the times, as a gamer, you might get carried away with a few of the inbuilt features and multimedia add-ons in a video game. But it is equally necessary to read the user experiences before you make a bet. There are online user reviews that can be of great help if you are a new Xbox user and these reviews can also help you to make the right pick. With the star ratings and customer comments, you can know about the benefits of any new add-on in the console or also get a glimpse into the added specifications. Compare the prices on various online shops The price of the Xbox One console differs on the basis of the version and space that it offers. Buying an Xbox One console online might give you some of the best deals to choose from. You can either purchase a new, pre-owned or bundle packages. Pre-owned Xbox One console If you are good with buying a pre-owned or used Xbox One console, then there are a number of websites where you can look for these consoles. If you are picking these online, then be sure to check the configurations, specifications, the graphics card, and controller. You should also look if you are getting any pre-installed games or free games.
  • Top 3 Accounting Software for Small Businesses
    The success of any business depends not only on how quickly you build your customer base but also how efficiently you manage the day-to-day business dealings. Accounting for financials is the biggest worry for any business owner and if you’re one of those who wants to have all information well-classified and up-to-date, accounting software is your best business tool. When it comes to choosing the right accounting software for your business, there are ample choices available. Based on your needs and what fits your budget, you can choose to buy an accounting software and use it to maintain a tight grip on your finances. Here is an overview of some of the top-rated accounting software of 2018.
    FreshBooks
    The most suitable software for sole proprietors and very small businesses, FreshBooks has launched a new version that has an easy-to-navigate user interface. Since it doesn’t rely on accounting jargon, the software can be easily used by novices. With good import options, FreshBooks offers flexible invoice and expense management tools. The accounting software doles out plentiful reports that can help you study the performance of your business. This accounting software offers excellent time-tracking tools. It does not follow the full-blown double-entry accounting, but scores high on invoicing tools and user experience. Easy on the pocket, FreshBooks Lite comes at a price of $15 per month. The premium plan costs around $50 and allows you to bill up to 500 clients. Plus you also get a 30-day free trial offer. Within a few minutes of setting up the accounting software, you can start invoicing.
    Intuit QuickBooks Online
    This accounting software offers comprehensive features for small business accounting. The software is easy to use and offers a good number of integrated add-ons, coupled with flexible functionality. The stand-out features of this accounting software include numerous customizable report templates, comprehensive payroll support and flexible contact records and transaction forms. QuickBooks Online offers seamless import of financial information from any other accounting software. You can choose from any of the three versions available, all with a 30-day free trial period. The Simple Start version that costs around $15 per month is ideal for micro businesses. Income and expenses can be tracked, along with creating and sending invoices and estimates. You can also connect to your bank account and add-on applications. The Essentials version, at around $35 per month, offers additional services like bill paying and invoice reporting. The Plus version, at around $50 per month, enables inventory tracking as well, along with preparing 1099s for the contractors.
    Xero
    Xero is an accounting software built on the double-entry accounting framework. It offers a new inventory tracking system and detailed records and transaction forms. Plus, it has online quotes features and smart lists as well. Xero makes it easy to track and manage inventory, sales, purchases, and payroll, the most vital aspects of any business. Xero also offers a unique feature of managing fixed assets. This accounting software also enables creating records for suppliers, customers, employees, and items and uses the same in standard or customizable transactions. Xero is a very popular and top-rated accounting software. Available at three pricing levels, you can decide to purchase Xero after availing the 30-day free trial offer. The Starter Plan which costs as low as around $9 per month, sets a monthly limit of 5 invoices and quotes, 5 bills, and 20 bank reconciliations. The Standard Plan at around $30 per month offers unlimited billing, invoicing, quotes, and reconciliations. Plus it also supports payroll for 5 people. The Premium Plan at around $70 per month, in addition to the above features, offers multi-currency support. You also get payroll support for up to 10 employees under the premium plan. Other possible accounting software choices include Zoho Books, Kashoo, GoDaddy Bookkeeping, Wave, One Up, Sage 50c, and Accounting Edge Pro. A number of accounting applications are available for small and midsized businesses, which are cloud-based. Get one and ensure that your business transactions are well-streamlined.
  • Causes and treatment of DVT
    DVT can happen at any age. However, it is most commonly found in people over 60 years of age. Blood clusters take shape when there are changes in the blood stream in the veins. The point where a coagulation severs and travels through the circulation system is called embolism. There are several causes of Deep Vein Thrombosis. Some of them are:
    • Fracture in legs or pelvis
    • Pregnancy
    • Obesity
    • Family history of blood clusters
    • Excessive number of platelets made by bone marrow
    • Having an in-dwelling catheter in a vein
    Blood will probably clump with if a person has the following issues:
    • Cigarette smoking
    • Immune system issues such as lupus
    • Cancer
    • Taking estrogen or conception prevention pills
    Sitting for long stretches when travelling can increase the possibility of this condition. The possible treatments for this include the following:
    • Vena cava filter: In this, blood typically goes through the filter. It goes in the vena cava, which takes blood from the lower body back to the heart. The filter gets blood clusters and prevents them from moving to those parts of your body where they can prove to be harmful. The filter is placed on an arm, leg, or neck vein and moves it into the belly vein. In such a procedure, radiologists use picture direction to put a channel in the IVC-inferior vena cava, the extensive vein in the mid-region that returns blood to the heart from the lower body. An IVC filter traps extensive cluster sections and keeps them from going through the vena cava vein to the lungs and heart and avoid medical complexities.
    • Venous thrombectomy: An extreme sort of this condition called phlegmasia cerulea dolens does not react well to different sorts of treatment. In many uncommon cases, you may need a cut in the deep vein clot. The doctor inserts a catheter sheath through a little cut in the vein underneath the knee or the femoral vein in the crotch. A contrast dye is infused through the catheter and venography is performed. This procedure permits the doctor to see using the X-ray screen which vein is to be dealt with.
    • Percutaneous mechanical thrombectomy: In this treatment, the doctor embeds an assisting wire through the catheter in the femoral vein and progresses it past the coagulation, and goes through the catheter to the area that is blocked by the clot. If performing surgical thrombectomy, the doctor incises a bigger entry point over the affected vein and removes the coagulation or the clot with a catheter. Either a high-speed liquid jet or a mechanical device is present at the tip of the catheter that separates the coagulation.
  • EMR and EHR – What is the difference
    Both these terms—electronic medical records (EMR) and electronic health records (EHR)—seem to have a simple change of an alphabet in the middle, but still, both of the terms are used by doctors, patients and other health practitioners interchangeably. There is a slight difference between these two forms of record systems. Let us find out more. Know the difference Before we delve any further, we must first understand what the two terms mean. An EMR is an Electronic Medical Record which is used by clinicians in carrying our diagnosis and treatment of an ailment based on the health metrics contained therein. These records include information regarding the past ailments and any allergies as well as current medication, for the patient. Whereas EHR is known as an Electronic Health Record, and it is used to record all the information that pertains to the state of the patient’s health. In this way, an EHR goes a little further than an EMR and helps in understanding the health of the individual rather than merely carrying out treatment and diagnosis of a particular ailment. Data usage While the EMR or Electronic Medical Record will keep track of all the information about the ailment for which the patient may visit the doctor, it also helps in setting screening schedules depending on the health and other metrics defined with the records. The EHR goes a little further by depicting the health of the patient. This information is not merely collected and collated, but it is also in a format which can be shared across health organizations and with clinicians who can compute this data to help in better care giving practices across various clinical settings. Benefits While the Electronic Medical Records will talk about the ailment and screening schedules, the EHR will be helpful in emergency situations as well so that proper care may be accorded without having to hunt for the appropriate health information. Maintaining medical records is of utmost importance in today's day and age so that one can get the right care at the right time for timely treatment of an ailment.