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Use this calculator to determine how big a line of credit you may qualify to receive.
The line of credit is based on a percentage of the value of your home. The more
your home is worth, the larger the line of credit. Of course, the final line of
credit you receive will take into account any outstanding mortgages you might have.
This includes first mortgages, second mortgages, and any other debt you have secured
by your home.
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Definitions
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- Appraised value of your home
- This is current appraised value of your home.
If it has been a few years since you purchased your home, it may be worth quite
a bit more than your original purchase price.
- Mortgages you owe
- This is the total of all outstanding mortgages on your
home. This should include your first mortgage, second mortgages and any other debt
that is secured by your home.
- Loan to value ratio
- The loan to value ratio is the percent of your home's
appraised value that your lender will allow. For example, a 80% loan to value ratio
would allow you to have $80,000 in debt secured by a home appraised at $100,000.
Remember - the total debt allowed includes all outstanding mortgages plus your new
line of credit.
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Information and interactive calculators are made available
to you as self-help tools for your independent use and are not intended to provide
investment advice. We can not and do not guarantee their applicability or accuracy
in regards to your individual circumstances. All examples are hypothetical and are
for illustrative purposes. We encourage you to seek personalized advice from qualified
professionals regarding all personal finance issues.
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