Equity release is a particular kind of loan that gives an opportunity to homeowners aged 60 or above to release the value of money tied up in their home into cash or income, or both. Your belongings are mortgaged to obtain the loan, but there are no monthly repayments to make. Ownership of your home lies with you and you have every right to live there as long as you want or till death. You can also choose to repay the loan and move to some other accommodation of your preference. In all the circumstances the loan is repaid on the death and residue money is paid back.
All said and done, it is vital to know how much equity has accrued in your home, how much you want or can borrow and how much the repayments will be. This is where the equity release calculator plays a pivotal role and helps you assess the value of your home equity.The equity on paper an individual may be eligible for equity release, but in real financial terms it may be difficult to work out. The equity calculator is vital part of your decision. It also calculates the total of loan you are eligible basing on your existing equity and repayment ability considering your present income and expenses.
The two most important function of an equity release calculator are:
Decide your worth.
Calculate how much you have to shell out
It depends on the valuation of the house to take a loan. This is assessed by calculating the disparity between the current appraised value of your home and the outstanding total of your original mortgage. Depending on your credit history, you may be eligible to borrow up to 85 percent of the difference. If a recent appraisal of your home is not done, the equity release calculator will give you choices to estimate your home’s current value. This will depend on different criteria. Once you supply these data into the calculator, it will assess the approximate value of your home on the present market prices.
The other important use of the equity release calculator is to assess and determine the amount you can borrow and repay basing on your existing ability. People with fixed incomes normally opt to borrow small amounts so as not to increase repayments than are currently set. The calculation will give an idea of fixed and variable rate loan.
The basic eligibility criteria for an equity release loan are the cost of the home and age of the borrower. Apart from that, the geographical location as well as the square feet and period the building has been in existence are also important. Over and above, your credit history is also essential to determine the eligibility for equity release loan.
Find out more about equity release calculators and equity release loans at onlineequityrelease.com
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