Ssh port forwarding is not available (locally) for IP rather localhost only

Your question was a little unclear to me, so I'm going to specify what I assumed and then try and help you with your problem. You are at the computer 'remote' which is SSH'ing to 'local' and this part works fine. If this is the case we no longer need to worry about router.

Continuing my assumptions, 'local' has a service running on it on port 12345 that you would like to access from 'remote' without opening additional ports on your router. What you would want to do is use the following command from 'remote':

ssh -L 1234:localhost:12345 user@router's_ip

To connect to the service you would then access it through localhost:1234.

The way the port forwarding syntax works is: {local_port}:{proxy_dest}:{proxy_port}

local_port is the port that will open on the client machine you are connecting from, to access it you would use localhost:local_port

proxy_dest is the host you would like to connect to from the perspective of the server you are SSH'ing into

proxy_port is the port on the remote system that you would like to connect to.

Regarding <1024 you can only do that by using root for the ssh tunnel:

http://www.centos.org/docs/5/html/5.1/Deployment_Guide/s2-ssh-beyondshell-tcpip.html

Note

Setting up port forwarding to listen on ports below 1024 requires root level access.

Regarding 127.0.0.1 you probably need to use '-g' in your ssh setup:

 -g      Allows remote hosts to connect to local forwarded ports.