Many of the senior home owners opt for the equity release plans to ensure a part of their property equity in liquid cash. This is a wise decision in ways that are more than one. However, most of the retired home owners are not much aware of the various nuances of how the lending institutions work and exactly how the equity on the property is calculated. The lending organizations offer the potential consumers an equity release calculator which helps the retired home owner in finding out the equity that is release able from their property. After the calculations obtained from the equity release calculator, the home owner can decide if the equity release plans are really viable as an option for them in terms of their property.
What is equity? Well the equity is the difference in the amount of the value of your property in the present market and the amount that you owe on your mortgage. It is the share in the value of the property that the home owner actually calls as own.
Out of the total available equity on the home, the home owner can release a part of the equity with the help of the equity release plans. The equity release plans are a way of releasing a part of the equity on behalf of the home owner to a lending organization who in turn will pay the amount in a lump sum or offer a fixed monthly instalment to finance the home owner’s regular life style and expenses on a daily basis.
If you are wondering about the equity release calculator, then the answer to that question is that many of the lending institution offers the home owners a free tool with which they are able to calculate the total amount of equity that can be released on the house. Based on this calculation by the equity release calculator, the home owner is able to figure out exactly how much money he can receive as the equity release plans take effect.
The equity release calculator is also available as a free tool online with various equity release websites. As a first step, the home owner is required to provide the equity release calculator with some vital information about the property that he wants to apply for the equity release plans. Based on the information provided, the equity release calculator will predict exactly how much equity can be converted into liquid cash. Some of the more advanced equity release calculator will also be able to provide some in depth information about all the possibilities in terms of the various equity release plans. The availability of such equity release calculator is of course dependent on the lending institution that is offering the equity release plans.
It would be a wise idea to use at least two different equity release calculators from two different websites so that he is able to get hold of the best equity release plan for his property and also get the best deal.