Reverse mortgage calculator
Have you heard that there is a way to get money for your home and still live in it for the rest of your life with a reverse mortgage? It is true and using a reverse mortgage calculator helps you to see how much you will receive. However, if you type “reverse mortgage calculator” into a search engine, you immediately return a lot of information that overloads you with technical advice.
For those of you desperately searching online for concise information concerning how to use a reverse mortgage calculator to find out how much money you can expect, there is hope. Even if you are not a financial genius or have learning disabilities with math, you can easily use a reverse mortgage calculator to figure out if you are eligible for the return on your home investment.
Reverse mortgage calculator and cash for seniors
The most important thing to understand is how a reverse mortgage calculator can show you how to live out the rest of your days based on the value of your home. If you are at least 62-years-old and own your own home, you may be eligible for a reverse mortgage. The way that it works is that you get money from the bank for your house –- but you continue to live there. The reverse mortgage calculator will allow you to see how much money you will get and how long you can continue living in your home.
For example, if you are single (and continue to remain single) and think that you will live another 30 years, you can use a reverse mortgage calculator to see how much money you will receive every month. At the end of the term, after your death, the bank will own your home and place it on the market for sale. Any residual sales amount is passed on to the people indicated in your will. The bank will not pass on debt to survivors and the residual amount can be estimated by using information on the reverse mortgage calculator page.
How the reverse mortgage calculator began
Many seniors are interested in staying in their own home and avoiding nursing home care. To say the least, these expenses can be extreme. To cover the costs of staying in your home, the Federal government set up a program called the Home Equity Conversion Mortgage under the Fair Housing Administration.
To help consumers understand how they could turn their home into cash while still living there for decades, the government enlisted the help of web developers to make the first reverse mortgage calculator. Today, this tool is used to make the dreams of seniors come true and shows them how to receive up to $625,000 maximum in home equity.
What to expect from a reverse mortgage calculator
Navigating these types of financial waters can seem too good to be true. Is there a catch? If you are worried about the details, a reverse mortgage calculator will address your eligibility and give you a chance to review what the offer specifically entails for your situation.
Some of the information that you will need to use a reverse mortgage calculator is:
- Your five-digit ZIP code
- Date of birth
- Spouse’s/co-owner’s date of birth
- Estimated home value
- Outstanding liens or mortgages for home in question
- Current monthly mortgage payments
- Amount of upfront cash you would like access to
- Home repairs estimate
- Line of credit indication
Results from a reverse mortgage calculator
If you take all of the time to put your answers in a reverse mortgage calculator, what can you expect in return? In general, the results will tell you whether you qualify and gives you five types of payment options based on the information you put in the reverse mortgage calculator.
Those five payment options are:
Tenure - Monthly payments of equal amounts throughout the time at least one owner is living in the home.
Term - Fixed monthly payments of equal amounts for a specific period of months or years. Use the reverse mortgage calculator to adjust the months and see which period of time is more profitable.
Line of Credit - A lump sum that you can access that is not found in monthly payments.
Modified Tenure - This is a tenure option combined with a line of credit.
Modified Term - This is a combination of fixed term and a line of credit. To figure out if this is a better option, the reverse mortgage calculator can help to make comparisons.
What a reverse mortgage calculator cannot do
While the online tool known as the reverse mortgage calculator is an incredibly easy device to use, it is not the perfect option for everything. For instance, there is a way to get money from the value of your home known as a home equity loan. The reverse mortgage loan may sound a lot like a home equity loan, but there are some differences. For this reason, you should not use your favorite reverse mortgage calculator to comparison shop for home equity loan estimates.
Another thing that the reverse mortgage calculator does not do is reserve you in a program, lock in certain rates, promise that this is the loan amount your will receive, or sign you up for a bank to call and offer you a reverse mortgage. In fact, the reverse mortgage calculator is merely a tool to give you an idea of how much you will receive if the bank approves your request. The final steps toward securing a reverse mortgage begin when you apply online.