![]() ![]() The income tax-free cash 3 you get from a reverse mortgage can allow you to eliminate monthly mortgage payments 4, keep more money on hand to meet everyday expenses, consolidate credit-card debt, help with healthcare costs-or be used for any other purpose that suits your lifestyle.Ĭheck out our blog for 10 ways you can use reverse mortgage proceeds. If your home value differs from what you thought it may be worth, you may be eligible for more or less proceeds than provided by the calculator’s estimate.Ī reverse mortgage loan lets you use your home equity to help you improve your financial situation and achieve peace of mind. ![]() As with a traditional mortgage, your home will be appraised during the application process. Remember, one of the factors that the reverse mortgage calculator results are based on is an estimate of your home’s value. They can provide a more in-depth analysis based on your unique situation even without having to apply. That’s why speaking to one of our reverse mortgage consultants is important. One important thing to note, the calculator is just an estimate and does not include loan costs, lender credits or other programs that you may be eligible for. This line of credit growth is only offered via the variable-rate reverse mortgage. For example, if your initial interest rate is 3.50% and the MIP rate is 0.50%, the growth rate of your available line of credit would be 4.00%. To calculate the HECM credit line growth rate, the initial interest rate (IIR) is added to the annual MIP rate. 2 This chart shows how much additional money will be available in the years to come. Our calculator will also provide a projected credit line growth chart. Lastly, you will see your equity reserve, the amount of equity still remaining in the home, when you close your loan, after receiving the funds from your reverse mortgage. This number includes the amount of funds available at closing along with the portion available after 12 months ( FHA Rule). The second is the total amount in loan proceeds that may be available to you. The first is the estimated mortgage payoff amount (if applicable). The reverse mortgage calculator will provide you with all available options based on the information you enter.Īfter entering your details into the calculator, you will be presented with three main numbers to review. If the value of your home exceeds the lending limit, there are private, non-FHA reverse mortgages available with all the borrower benefits and safeguards of a standard HECM-such as Longbridge Platinum. For a standard Home Equity Conversion Mortgage (HECM), the maximum loan amount cannot exceed that allowed by the Federal Housing Administration (FHA). ![]() As rates naturally fluctuate, they impact the percentage of your home equity which you can borrow-for example, the lower the interest rate, the more cash that’s available. Keeping up with property taxes, insurance, and maintenance is required. Unlike a traditional mortgage, a reverse mortgage does not require monthly mortgage payments. All remaining money can be used any way you would like. Including all mortgages and liens, these loans must be the first items paid off when receiving reverse mortgage proceeds. Total outstanding loans against your house.This will compare your home to those which have recently sold in the area along with other factors. If you’re not sure, use your best guess or enter your address to get an estimate from. This is how much your home is worth in today’s market. In most cases, as you get older, the percentage of your home equity which you can borrow increases. Applicants must be at least 62 years old to qualify for a reverse mortgage. To calculate your loan estimate, our calculator uses the following information: ![]()
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