A reverse mortgage calculator is a tool used to calculate how much cash a borrower would be eligible to receive through this unique financial product. Calculators are also available to help borrowers calculate the costs associated with using this financial product. These tools are a indispensable resource for consumers who are unsure of whether it is right for them.
How to Use a Reverse Mortgage Calculator
Most reverse mortgage calculators require some basic information before they can begin calculating a person’s eligibility. These calculators will typically ask for the age of the borrowers, the Age calculator value of their property, and the current balance of their existing mortgage loan. This information is usually enough to give consumers a preliminary estimate of what they might qualify for.
In addition to this information, the calculator might also ask for a person’s zip code, full address, or contact information. Providing one’s address will help the calculator determine the value of the home. Contact information is typically requested in order to provide the consumer with additional information.
Many calculators provide additional information by asking whether a person has taken a second mortgage or if there are liens against the property. If there is a lien against the property, this must be resolved before a consumer can qualify for a reverse mortgage. A second mortgage will only be an issue if there is not sufficient equity in the home.
While some calculators only determine the amount a consumer can expect to get from a reverse mortgage, others will help consumers determine their interest rate, closing costs, mortgage insurance premiums, and other fees. This will help a person get an idea of what to expect from this product before deciding to apply for a loan. It is, however, important to realize that these figures are estimates and may vary from what a person actually qualifies for.
The Benefits of Using a Reverse Mortgage Calculator
There are several benefits to using a reverse mortgage calculator. The first is that a calculator can help a person determine whether he or she could qualify for a reverse mortgage. Many consumers are under the impression that being 62 years of age is the main qualifying factor. While that is important, the amount of equity borrowers have in their home is equally important. Before contacting a loan officer, many consumers appreciate knowing whether they are a good candidate for this financial product.
Once a consumer inputs their information into a reverse mortgage calculator, the tool will usually present the person with a few different options. Through this product, cash is given to the consumer in a lump sum, installments, or in a line of credit. The amount a person will receive depends on the type of loan and payment option they choose. Reviewing the different options will help consumers determine which would most greatly benefit their financial situation.
While using a calculator is helpful, it does not take the place of speaking to a professional. Consumers who are ready for a more accurate assessment of their eligibility will need to speak to a professional in order to determine exactly how much they can expect to receive through a reverse mortgage.