What is a Reverse Mortgage Calculator?
A reverse mortgage calculator is a tool used by homeowners to determine eligibility as well as to calculate the amount of equity they can receive when applying for a Reverse Mortgage. Recently, new Mortgagee letters introduced by HUD, have set a certain percentage based upon the youngest borrowers age. A Reverse Mortgage Calculator can be used to calculate the amount of money a senior homeowner will be receiving or, in most cases, how much of an existing lien will be eligible to be paid off with the proceeds of the Reverse Mortgage loan. The most efficient calculators can calculate to the penny how much you are eligible for, although, most calculators can give you a close estimate based off of the information entered by the user. It is important to keep in mind that only a licensed individual can quote an exact figure when it comes to calculating the amount eligible for.
When seeking to calculate how much equity you are eligible for, there are several factors to take into consideration. First and foremost, is the value of the property. Keep in mind, only a licensed FHA appraisal can determine the true value of your property, and eventually will need to be done in order to determine actual value. The second key factor is the age of the youngest borrower on the title to the property. Recent changes with the Reverse Mortgage program have allowed borrowers under the age of 62 to be able to qualify for the reverse mortgage program, granted, at least one borrower is at least 62 years old. Lastly, knowing how much you currently owe on your property can also play a big part in figuring out your Reverse Mortgage calculation. Existing liens include, 1st Mortgage, 2nd mortgage(s) and any tax liens on the property. A lien is defined as, a right to keep possession of property belonging to another person until a debt owed by that person is discharged.
As previously discussed by many other avenues, educating yourself on the ins and outs of reverse mortgages is always highly recommended. Being able to understand the terms and frequently used words associated with Reverse Mortgages will ultimately help you get the best deal for yourself as a consumer. Different educational websites that offer free information and a Reverse Mortgage Calculator would be the recommended first step when looking into a Reverse Mortgage.
ReverseMortgageSpace is certainly a leader in the education and information aspect when starting or looking into a Reverse Mortgage, Happy Hunting!!!