Using a reverse mortgage calculator is a great place to start if you are trying to see if you have enough home equity to qualify for a reverse mortgage loan. A reverse mortgage calculator will give you an approximation of your reverse mortgage loan amount eligibility.
Using a reverse mortgage calculator is the easiest way for senior homeowners to find out if they have enough equity in their home to qualify for a reverse mortgage. If you have been thinking about tapping into your home equity through this unique type of home loan, you might be wondering how much money you could actually get from your home and still continue living there without monthly payments.
The easiest way to get an approximate idea of what you might be able
to qualify for, is to utilize an online reverse mortgage calculator tool. A reverse mortgage calculator is very simple to use. You only have to input a couple of personal details into the reverse mortgage calculator and it will estimate approximately how much money you are eligible for.
The required details consist of your zip code, the dates of birth of all persons on the title to your home, what you think your home value is, and what your current mortgage balance is, if any. Once these details are entered, the reverse mortgage calculator will then show you the approximate loan amounts for several loan programs that you are eligible for.
FIXED INTEREST RATE VS. ADJUSTABLE
Each loan choice displayed by the reverse mortgage calculator will offer slightly different loan amounts because they have slightly different interest rates and margins. In most cases, the reverse mortgage calculator will also show you a fixed rate loan choice along with several adjustable choices. Sometimes there is a fairly large difference in the amount of money you can get from a fixed rate reverse mortgage versus an adjustable. Current market interest rates will dictate these differences.
INTEREST RATES AFFECT LOAN AMOUNTS
One noteworthy thing to keep in mind, is that interest rates are constantly changing with market conditions. Consequently, a reverse mortgage calculator must be re-programmed whenever interest rates change. Usually changes are made each Tuesday, if there has been a fluctuation in the indexed rates that these loans are tied to.
If you are using a reverse mortgage calculator, please be aware that it is strictly a tool for you convenience and will give you an approximation of how large a loan you might be able to qualify for. If the numbers provided from the reverse mortgage calculator are attractive to you, you will definitely want to take the next step and get a customized loan benefit summary from a lender. The summary that a lender can provide will be much more comprehensive and will be a more accurate presentation than what can be provided by a simple online reverse mortgage calculator.
The lender's benefit summary will provide a complete cost breakdown of the fees that will be involved in obtaining a reverse mortgage. It will also give you an amortization schedule so that you can estimate years into the future what the loan balance will be compared to your home value in later years. This is something that many people are interested in seeing because they want to know how a reverse mortgage will impact their estate over the long term.
START WITH A REVERSE MORTGAGE CALCULATOR
So if you are just starting to look into the possibility of getting a reverse mortgage, using a reverse mortgage calculator is a great first step. Because, if you are not even close to having enough equity in your home to qualify, you might as well find out right away and be done with it. On the other hand, if the reverse mortgage calculator displays numbers that you like, you will probably want to do further investigation and request a full blown benefit summary from a reverse mortgage lender.
Source
No comments:
Post a Comment