How Do I Calculate a Reverse Annuity Mortgage?
- 1). Type your ZIP code and home value, along with your birthday and your spouse's birthday, into a reverse mortgage calculator, such as the one on the AARP's website (see Resources).
- 2). Press "Calculate" at the bottom of the calculator. This will generate an average of what you could expect with a reverse annuity mortgage. The calculator will show you the difference between a lump sum distribution and regular payments made to you.
- 3). Contact a reverse mortgage lender. All reverse mortgages are guaranteed by the U.S. government. However, private banks service the loans and handle all of the necessary paperwork. Fill out the paperwork to get an exact quote from your bank. This will normally require filling out a reverse mortgage loan application. No credit checks are necessary because the loan is fully secured by the house.
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