Reverse Mortgage Calculator (Oct 2021)
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Try Our Instant Reverse Mortgage Calculator for Oct 2021
Try our reverse mortgage calculator to discover how much cash could be tied into your property!
If you don’t look into this now, you could end up in a position where you have lost out on an incredible retirement opportunity.
We’re here to help you discover:
• What’s a reverse mortgage.
• If a reverse mortgage differs from a lifetime mortgage.
• How to use a reverse mortgage calculator.
• Why you should use a reverse mortgage calculator.
As leaders in the field of equity release, we’re constantly keeping you up to date with the latest terms and ideas.
Are you ready to discover the truth behind our reverse mortgage calculator? Find out now!
An Introduction to Reverse Mortgage Calculators
Have you heard the word reverse mortgage, but you don’t quite know what it is?
Unlike regular mortgages where monthly payments are required, a reverse mortgage works with compound interest, and the loan has no set repayment date. The loan, plus interest, is only repaid from the sale of your home when you die or move to long-term care.
Our reverse mortgage calculator for Oct 2021 is a fantastic way to get an estimate of how much cash could be tied into your home.
Reverse Mortgages Explained
When it comes to equity release products, like reverse mortgages, your home serves as a security against your loan. Therefore, the value of your property is the most important consideration of your lender.
The lender will do a proper valuation to determine the risk of their loan and ensure that your property is worth the collateral.
What’s fantastic for the property owner is that the Equity Release Council ensures that your family will never have to pay more than the loan and interest incurred, even if property prices drop drastically. Therefore, the risk lies with the lender.
Is a Reverse Mortgage for Pensioners?
Yes and no.
While pensioners most commonly use these products, you need to be 55 and above to qualify for a reverse mortgage. Therefore, even if you’ve got a good few years before your golden years, you can take advantage of a reverse mortgage scheme to supplement your income.
Pro Tip: If you want to reduce the interest from accumulating, it’s often best to delay using an equity release product as long as possible. However, now is a great time to unlock equity as interest rates are at an all-time low.
How Does a Reverse Mortgage Work in Oct 2021 ?
As previously mentioned, a reverse mortgage is another umbrella term for a lifetime mortgage. It’s a loan against the value of your estate that allows you to retain 100% ownership and stay in your home until you pass away or move into long-term care.
You can unlock the equity in 2 ways:
• Drawdown facility
In addition, you can opt for a combination of the 2. What’s fantastic about a drawdown facility is that you’ll only pay interest on the equity 3 you release. The balance that sits in the drawdown facility will remain tax-free.
Who Qualifies for a Reverse Mortgage?
You could qualify for a reverse mortgage if:
• You own your home.
• The youngest homeowner is over 55.
• Your property value is a minimum of £70,000.
• Your property is located in the UK.
• You have a small mortgage, or the house is fully paid off.
If you have an estimated value of your property, try our reverse mortgage calculator to see how much you could be eligible to release.
Got Questions? Check These First
How Much Money Do You Get From A Reverse Mortgage?
Well, the amount of capital you can unlock from a reverse mortgage depends on the amount of home equity you have available. According to various experts, you can’t use more than 80% of your estate’s equity based on it’s appraised value. Moreover, the maximum amount anyone can get from a reverse mortgage is approximately $680,000.
What’s the Downside of A Reverse Mortgage?
There are various downsides to taking out a reverse mortgage. Some of these drawbacks include:
- It reduces the amount of equity your family will receive as an inheritance
- It affects you need-based government aid like the Social Security Income (SSI)
- You might be forced to pay up the loan if you don’t keep up with the title fees, estate taxes, homeowner’s insurance and association fees, plus the location preservation
How Does A Reverse Mortgage Calculator Work?
Well to figure out how much you can release from the reverse mortgage plan, you’ll have to sue the reverse mortgage calculator which requires you to input:
- Your home’s estimated value
- Your age – you have to be aged 62 and above
- Any existing mortgage balance
What Percentage of Equity Can You Get On A Reverse Mortgage?
Well, based on research, you can take about 60% of your home’s equity in a reverse mortgage. There must, however, be enough left over to cater to the closing costs which are usually due in advance and can run as much as 5% of your estate’s value.
A reverse mortgage is a fantastic way to supplement your retirement income or fund a dream you’ve always wanted to fulfill.
In addition, being aware of the fact that a lifetime mortgage and reverse mortgage are pretty much the same thing will help you have a more extensive understanding of the industry.
While your final loan offered will be subject to a brand-new evaluation and the condition of your estate, our reverse mortgage calculator, is the perfect first step towards unlocking a financially stress-free life.
Spend just 8 seconds, and your results will be emailed to you. From there, contact an independent financial adviser who will guide you on your equity release journey. You’ve got endless support at your fingertips in Oct 2021!
Editorial Note: This content has been independently collected by the SovereignBoss advisor team and is offered on a non-advised basis. Sovereignboss may earn a commission on sales made from partner links on this page, but that doesn’t affect our editors’ opinions or evaluations.
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Most people are using equity release as a means of retaining the use of their house while also obtaining a lump sum or a steady stream of income. Get matched with an expert and check your eligibility for equity release options.
Use our free equity release calculator & see how much you can release today.