How Seniors Can Use a Reverse Mortgage Calculator to Their Greatest Benefit

A reverse mortgage calculator is a tool used to estimate the amount of money an individual might be able to receive through a reverse mortgage. To use a reverse mortgage calculator, seniors simply input their age, home value, existing mortgage balance and estimated interest rate. The calculator will use this information to determine whether the individual could qualify for a reverse mortgage, as well as how much the person stands to receive.

Use a Reverse Mortgage Calculator to Determine Whether Now Is the Right Time for a Loan

To qualify for a reverse mortgage, seniors must either own their home outright or have a small remaining mortgage balance. While many seniors are aware of this fact, few know exactly how much equity they need to qualify for a loan. To determine how much equity one needs, seniors are welcome to use a free online reverse mortgage calculator. Using a senior’s age, existing mortgage balance and estimated property value, the calculator will determine the individual’s eligibility.

Once seniors determine whether they have enough equity to qualify for a loan, they can continue their research by calculating their payout based on different factors. To get an idea of how their age and equity will impact their payout, seniors can use a calculator to see how much more money they could receive if they waited a few years to apply for a loan. Prospective borrowers can also explore their options by calculating their potential payout based on a higher property value, different interest rates and a smaller remaining mortgage balance. This should help borrowers determine whether now is the best time to get a reverse mortgage, or if it is in their best interest to wait.

Is a Reverse Mortgage the Best Option? Use a Reverse Mortgage Calculator to Find Out

While reverse mortgages are popular among senior homeowners, these loans are not the only way to access a person’s home equity. Seniors can also borrow against their home equity using a home equity loan or a home equity line of credit (HELOC). While these loans will require borrowers to make monthly payments to their lender, they tend to carry smaller upfront costs. Before getting a reverse mortgage, seniors should consider both of these alternatives.

One way to determine the benefits and disadvantages of each loan is to calculate the possible outcome of each option. Calculators are not only available for reverse mortgages; these tools are available for almost every type of loan. Before making any decisions, seniors should calculate how much they could receive through a home equity loan or HELOC, their potential closing costs and their estimated monthly payments. Comparing different loan products can help seniors determine whether a reverse mortgage is their best option.

The great thing about using a reverse mortgage calculator is that these tools are completely free. Calculators are designed to help seniors educate themselves and gain a better understanding of reverse mortgages. While no reverse mortgage calculator can promise to provide entirely accurate results, they can help seniors figure out whether they want to continue pursuing a loan.