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Reverse Loan Calculator
Simply stated, a reverse mortgage
is a loan that enables homeowners (age 62 and older) to convert
part of the equity in their home into a tax-free income without
having to sell the home, give up the title, or take on a new monthly
mortgage payment. More and more homeowners are using this to supplement
their retirement income, pay for health care, modify their home,
or just get some cash for emergencies. Since this is a new product,
some people have misconceptions of what a reverse mortgage is. The
bank doesn’t give you money and take your house. Let’s look at some
of the most common questions.
Are reverse mortgages for desperate people? No. It is an excellent
financial planning tool used from people of all walks of life. How
do I qualify? You must be 62 or if both parties are on the mortgage,
then you both must be at least 62. And, you must have equity in
your home. What if I still owe on my home? You may still qualify
even if you have a balance on your first mortgage. The proceeds
must be used to pay off the mortgage, first. How much can I get?
This depends on several factors such as, the age of your home, the
value, your age at the time of closing, and interest rates. Is it
just monthly payments? No. You can get a lump sum, line of credit,
monthly payments or a combination of monthly income and a line of
credit.
The results of this loan payment calculator are for comparison purposes
only. They will be a close approximation of actual loan repayments
if available at the terms entered, from a financial institution.
This is being provided for you to plan your next loan application.
To use, enter values for the Loan Amount, Number of Months for Loan,
and the Interest Rate (e.g. 7.25), and click the Calculate button.
Clicking the Reset button will clear entered values.
Enter only numeric values (no commas), using decimal
points where needed.
Non-numeric values will cause errors.
Before you jump on your computer and apply to the
first one you find you should first begin by getting all of your
information together. You will need employment information including
how to contact your employer, a recent bank statement or a recent
check stub. You will also need to contact your bank and get your
routing number, if you do not know how to find this out on your
personal checks. When you fill out the application they will not
ask for the routing number, but before the money is deposited into
your account the lending company will have to have the routing number.
Most lending companies today that offer cash loans
can give you what is called instant approval in around five minutes.
All you need to do is fill out your contact information and your
income history. These types of loans are not based on any type of
credit history or any other financial factors.
After, the lending company has verified
your income; you will receive your approval notice and the instructions
to complete the process for receiving your cash loan. Normally,
these cash loans are made for $500 up to $1000. The cash loan will
be deposited into your bank account through direct deposit usually
overnight. |
