There are an estimated 80 million individuals on the brink of retirement, which means they will likely need additional sources of income. The recessing economy has decreased the amount of retirement funds that many expected to receive, and many homeowners do not want to eliminate their savings just to be able to remain in their home. Many homeowners in this financial predicament have found their solution in a reverse mortgage loan, which helps homeowners save money by eliminating monthly mortgage payments and providing access to home equity.

What the Calculator Accomplishes

If a homeowner thinks a reverse mortgage loan could be a viable option, there is now an efficient way for homeowners to determine their eligibility for the loan, as well as determine how much they could possibly receive. Newretirement.com has recently launched a new reverse mortgage loan calculator that can help homeowners who are considering a reverse mortgage loan with their decision process.

The calculator first determines whether a homeowner is eligible for a reverse mortgage loan. Then, it uses the homeowner’s age, home value and mortgage balance to calculate the loan amount he or she could possibly receive. While there are other, similar reverse mortgage loan calculators that exist, this calculator is unique in the fact that it uses an average of interest rates and program fees from all over the industry to provide the homeowner’s estimate. The homeowner can then compare their estimate with what is being offered by reverse mortgage lenders.

In addition to everything else, the calculator provides estimates for both fixed-rate and adjustable-rate mortgages in order to give potential borrowers more options to choose from. Once a homeowner receives an estimate of the loan amount he or she could receive, the calculator also shows the different disbursement options the homeowner can choose from, including a lump sum, line of credit, monthly tenure payments or a customized option that best suits the homeowner’s needs.

This calculator simplifies the most difficult part of the decision process one goes through when deciding how to finance his or her home. Once a homeowner’s eligibility and loan estimates are calculated, he or she should speak with a reputable reverse mortgage loan specialist to confirm the accuracy of the information he or she received. A loan specialist can verify the homeowner’s eligibility and provide them with an official quote, which should either verify the estimates they received or make them more precise.

Reverse Mortgage Loan Eligibility and Requirements

To be eligible for this loan, the homeowner must be at least 62 years old and be financing his or her primary residence. The loan does not require monthly mortgage payments as long as the homeowner remains current on his or her home repairs, real estate taxes and homeowner’s insurance. If these are not kept up-to-date, the loan will be considered delinquent and will become due and payable. Homeowners who are considering a reverse mortgage, have questions, or have used this calculator to determine what they want from a reverse mortgage and are ready to proceed should contact a reputable mortgage specialist for more information.

Author Bio: Victoria Belle-Miller is the newest member of the Senior Reverse Mortgage writing staff. Her background in journalistic writing and ability to evaluate the issues that Americans face in daily life make her a strong addition to the reverse mortgage team.

Category: Finances
Keywords: Reverse mortgage, home loan, reverse loan, calculator, seniors, equity, eligible, funds, fixed income, foreclosure, specialist