A reverse mortgage calculator is an excellent way to obtain a good estimate of just how much cash you can receive from a reverse mortgage. Depending on which type of reverse mortgage you decide to take out, you might be able to access as much as 60% of the equity of your house. This equity is not taxable unless you are taking the money out in a lump sum.
The amount that you can access through a reverse mortgage brookings Oregon is never more than the total amount that you paid for the house, and it is tax exempt. In order to determine the potential value of the equity in your home you should also consider the current market value of your neighborhood. Assume that your neighborhood is in good repair, and that there is no foreclosure or large scale development occurring in the immediate area.
Also assume that your home has a relatively high market price, and that there are many prospective buyers. Your reverse mortgage loan balance will be based upon the estimated amount of equity that is available in your home, and the interest rate that is being charged on this loan. If your loan balance is higher than the home equity that exists in your neighborhood, then you can qualify for a larger reverse mortgage loan, which will give you a greater cash flow for your retirement. Your financial goals should dictate the size of the loan balance that you seek.
For example, if you have a very tight budget but are interested in a large cash amount for your retirement, you will most likely want to obtain a smaller reverse mortgage loan balance. However, if you already have a significant home equity balance and are planning for a large purchase you will likely want to obtain a larger loan balance in order to cover the cost of the home, and to secure the purchase price. There are many reverse mortgage calculators available online that can provide you with the appropriate loan balance that you need in order to work your way towards your financial goals. A reverse mortgage specialist can greatly assist you in the selection of the right loan balance to meet your individual financial goals.