Easy Calculations for Equity Release
It is time to talk about equity release. Equity release, also known as lifetime mortgages, are a great way for homeowners to access the value of their property without having to sell it or move out. It is important that you know how much equity you have in your home before deciding on an equity release product so that there will be no surprises later down the road.
How do I calculate my equity release? To calculate your equity release, you need to know :The loan amount (how much will you need to borrow), the interest rate (how much will this cost you each year), the length of the loan (how long are you borrowing for).
To calculate the equity release, you would take your home’s current market value and then subtract what is owed on its mortgage loan or line of credit. The resulting figure will be the ‘equity’ available to fund your equity release product.
The best part about calculating your equity is that there are products to suit every need and budget! For example, a 55-year-old homeowner may want an income stream for life without the risk of repayments increasing over time (a lifetime annuity) or they might prefer a lump sum settlement cash payout now .
If you are considering equity release, it is important that you take the time to work out what will be best for your circumstances. Calculating how much money you need and at which interest rate can help guide your decision so that there will be no surprises later down the road.
Finally, equity release can be a great solution for homeowners that want to stay in their homes and maintain the lifestyle they have always had.…