What is a Reverse Mortgage Calculator?

A Reverse Mortgage Calculator is a free online tool that can allow potential borrowers to be able to receive estimates of how much they can get from a reverse mortgage loan. A reverse mortgage loan allows those who are 62 years and older to access a portion of the equity available in their home. This online calculator can be convenient for people who are interested in pursuing a reverse mortgage loan, as it can show them the estimated value of their benefits with a simple click of a button.

But how does a Reverse Mortgage Calculator work?

The first step is to fill out the information requested by the Reverse Mortgage Calculator. The form will ask the age of the youngest borrower, the value of your home, the mortgage balance on your home and address. All this information is essential to providing you the estimated costs of your reverse mortgage loan and to determine your qualification.

Why do I need to enter the information requested?

Each category requested for the calculator is to help provide the range of what benefits you can receive, and each has a special purpose to help determine the calculation.

Age – Age is requested because it can help determine the qualification of the homeowner(s). The youngest borrower must be at least 62 years old. Also, the older the age of the youngest borrower will allow the borrowers access to more money.

Home Value – When you apply for a reverse mortgage, an appraisal will be done on your home to determine the value of your home. Unless you have a large mortgage balance on your home, the higher the home value, the more availability to the access on the equity of your home.

Mortgage Balance – The mortgage balance on your home is to help figure out how much equity is available in your home. If there is not enough equity in the home for a reverse mortgage loan to make sense, then it may not be the best option for you right now. However, that does not mean having a mortgage balance on your home can automatically disqualify you. One of the benefits of having a reverse mortgage is that you are able to pay off the mortgage loan on your home with the funds you will receive.

Address – Providing your address will allow your reverse mortgage professional to provide you with a more accurate reading of what you can qualify for. The calculator provided uses your address to be able to look up the most recent information regarding the property value of your home.

 

While the calculator can be great for those who are just starting out on their research for reverse mortgages, it is important to remember that a reverse mortgage calculator provides estimates. The most ideal way for anyone to receive detailed information about their reverse mortgage loan is to speak with a professional. A Senior Advisor is available for your reverse mortgage needs at 1-888-808-8486.

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