Many homeowners may be wondering what is an equity release calculator https://fundweb.co.uk/equity-release-calculator/ and why would you need one. The purpose of these calculators is to help you determine if an equity release mortgage loan is the best option for you when purchasing a new home. These loans have been on the rise in popularity lately as home values have increased but interest rates have remained low. If you currently own your home and want to make an equity release on your home by selling it or moving within the equity release term then you need an equity release calculator. Here is how you use an equity release calculator to determine if this equity release option is right for you:
– With no loan term, your potential monthly payment could be lower than your existing monthly budget. With lifetime mortgages the monthly payment you could borrow is basically based on: The remaining value of your home and the age of the oldest applicant. The best way to determine your potential monthly payment is to input the fields for your marital status, years of full time employment, the current value of your home, the expected date of retirement and the current retirement interest rate. To determine your potential payment, you would need to multiply these four numbers together to come up with your final amount.
– You will also need to take into consideration the level of equity you currently have. If you are planning to make an equity release on a property that has not yet reached its full value then you are going to need a much larger lump sum. However, if you are planning on making an equity release on a property that is nearly finished paying off then you would only need to borrow a smaller lump sum. This is important because with a much larger lump sum you could possibly pay off much or all of your lifetime mortgages.
A much greater portion of your monthly income can be diverted to paying off your life mortgages if you use a free equity release calculator. All it takes is some basic information and you can determine how much money you could be saving every month. You can also use this free tool to see how much money you would be spending if you were not repaying your monthly life mortgage. This valuable information can be invaluable to those planning on selling their homes or in some cases they can help those who are considering purchasing homes with a much larger down payment.
– You can use the equity release calculator to find the annual return on your property. This is basically the interest you would be paying on your loan and this is based on the age of the homeowner. By inputting the figures for your homeowner’s age as well as your postcode you can calculate how much money you can expect to save on your monthly mortgage payments each year. If you are planning on selling your home then these figures can prove invaluable.
A mortgage is usually an expensive commitment and it is important that you are properly planning your finances and ensuring that you have enough money to service your loan repayments each month. By using one of the free equity release calculators you can work out how much equity you may still have in your home and this can prove to be a valuable asset when planning for your retirement years. However, you need to remember that even if you release a large amount of equity into your mortgage each month this does not mean that you will always have extra cash available to you. Your home may still be tied up in the equity that you have already paid and you may need to refinance into a new loan to free up any further equity.