Reverse Mortgage Calculator Options: Easy Ways to Estimate a Loan
Many homebuyers who are in need of cash opt for a reverse mortgage to help them through a financial downfall. A reverse mortgage calculator helps you estimate your costs to decide if this type of loan is a good fit for your financial situation.
What Is a Reverse Mortgage Calculator?
You may have used a mortgage calculator to initially determine an estimate for your mortgage payment or interest you are required to pay when purchasing your home. A reverse mortgage calculator operates in the same way. Homebuyers can input data to determine how much cash they can draw from their existing mortgage loan.
What Data Is Required?
You have to enter financial data and information about your property when using a reverse mortgage calculator. The calculator, often found online or within software operated by a financial adviser or lender, asks for your date of birth, the property value, your zip code, the balance on your mortgage and any liens you placed on the property. Homebuyers must also input how many years they anticipate living at the residence.
What Results Are Provided?
The data you input into the reverse mortgage calculator provides you with an estimated amount of cash you can draw with a reverse mortgage loan and the charges you are assessed if you proceed with the loan. You may also be prompted to choose between a mortgage insurance premium that is low or high when determining upfront costs for the reverse mortgage loan.
People who are 62 or older have the option to obtain a reverse mortgage to convert equity from their home into cash. The disadvantages of obtaining this cash include higher upfront fees and interest you may accrue. Determine if a reverse mortgage is right for you by utilizing a reverse mortgage calculator to easily estimate your loan.