Reverse Mortgage Calculator - This Reverse Mortgage calculator is specifically designed to show you how the outstanding balance of a reverse mortgage can rapidly grow over a period of time. Use this reverse mortgage calculator to help determine the balance of a reverse mortgage and to make an informed financial decision.
Lump sum advance - The starting balance or amount you expect to receive immediately from your reverse mortgage.
Years - The total number of years you are planning draw from the reverse mortgage.
Monthly loan advance - Total monthly amount you plan on receiving, in addition to the lump sum advance under the reverse mortgage.
Interest rate - The annual interest rate for this reverse mortgage.
Many seniors use reverse mortgages to supplement their social security payments, pay medical expenses, or even make home repairs or improvements. So what is a reverse mortgage?
A reverse mortgage is a special type of home loan that lets a homeowner convert a portion of their equity in a home into cash. The equity, which has built up over years through home mortgage payments and home value appreciation, can be paid to you using a reverse mortgage. Unlike a traditional home equity or mortgage, no repayment is required in a reverse mortgage until the borrower dies, sells the home, or permanently moves out of the home.
The cash paid to you from a reverse mortgage can be distributed in several ways:
• all at once, in a single lump sum of cash;
• as a regular monthly cash payment;
• as a line of credit account that lets you decide when to access the cash; or
• as any combination of these payment methods.
To be eligible for most reverse mortgages
, you must be 62 years of age or older, own your home outright, or have a low mortgage debt balance that can be paid off at the closing with proceeds from the reverse mortgage; and must live in the home.
With a reverse mortgage, you don't have to make monthly repayments, so you don't need a minimum amount of income to qualify for a reverse mortgage. You could have no income and still be able to get a reverse mortgage. And since there aren't any monthly repayments to make in a reverse mortgage, you cannot lose your home by not making them.
The amount you can borrow under a reverse mortgage depends on your age, the current interest rate, and the appraised value of your home or FHA's mortgage limits for your area, whichever is less. Use the reverse mortgage calculator to determine the balance on your reverse mortgage.
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