An equity release calculator is an excellent tool for working out how much equity would be available to you in your property. This article will take you through all of this and much more:
Using an equity release calculator allows you to work out what you could potentially get from selling your home. The amount of equity that you could release is based on a number of different things including the equity of your home and the equity of your employer. However, it is also based on certain interest rates that you can offer. You should take into account the difference between these two values when choosing which equity release calculator you are going to use. For example, if your house is worth about two hundred thousand pounds and your annual salary is around twelve thousand pounds then you would be looking at two hundred thousand pounds of equity. By using an equity release calculator, you can work out what you could potentially get by releasing just a fraction of this.
One thing to remember when using any free equity release calculator is that you can end up paying hundreds, if not thousands of pounds in interest charges on the money that you are getting away from your home. It’s important that you know this before taking out any loans to pay for these costs. Therefore, it is a good idea to ensure that you read any terms and conditions associated with the loan very carefully.
Many people have found that these types of equity release plans are ideal for first time home buyers as they offer a really quick method of getting equity from their homes. However, many people have been finding that this type of plan are ideal for use by people who are planning on buying second homes. A lot of lenders will give equity release plans away in order to attract people to their lending programmes.
A good free equity release calculator should be able to tell you the answer to the question ‘How much equity can I release?’ Using this information you should be able to work out how long it will take to recoup the cost of giving up your home. This is usually roughly two to three years depending on how much equity you have in the property. It is also important to note that this number is only an estimate. You should always check with any potential lenders to ensure that you are getting the best deal possible on your mortgage.
Finally, it’s worth remembering that whatever kind of equity release calculator you are using, you should always double-check your calculations. There is no point getting your hopes up and then having them dashed when you find that the numbers aren’t as you had hoped. When you are using a free online release equity calculator, it is vital that you are completely honest with the figures you are given. If you are not 100% sure about any of the figures you are given, then it might be better to keep looking. After all, your home is probably the biggest investment you will ever make.