Professional Realtors Blog

Often termed as an equity release plan, a reverse mortgage generally involves borrowing money and securing it against your home. Persons above the age of 62 are eligible for reverse mortgage. This is true for senior citizens and couples who are in need for an income and have equity in their homes. Interest is added periodically on the loan amount until death or until an event of a sale. The interest is thereafter added to the loan. Regular repayments do not occur until the borrower’s death or until the house is sold off. Reverse mortgages allow only a certain percentage of the value of the house to be borrowed. Moreover they have certain limitations when it comes to paying off the mortgage, For instance, you cannot attach any other asset than your home to pay your mortgage. So who will help you determine if or not do you need a reverse mortgage? The answer is a reverse mortgage calculator. What matters the most is the total value of your property and the payoff amount. A reverse mortgage calculator will estimate the amount of money that you can borrow against your property. Information such as birth date, current property value, money owed on your home etc is asked for in order to estimate the equity that you have in your home.

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