Home Equity CalculatorHow much equity do you have in your home? When you are applying for a home equity loan or line of credit, the amount of
equity in your home is one of the important factors which allows us to determine the maximum amount we can lend you.
Remember, equity is simply
the difference between the current market value of your home and the balance of the mortgage. In order to reduce its risk of losses, the bank establishes a
maximum loan-to-value, or LTV. Dollar Bank has loan-to-value options up to 90%. Speak to a Dollar Bank Representative for more information.
There are two things that you will need to estimate the equity in your home. First, you will need to know the approximate current market value of your home.
You can use a recent tax assessment, or the sale price of a similar home that has sold recently in your neighborhood. Second, you will need to know the
current remaining balance on your existing mortgage.
You are now ready to determine the equity available to secure a loan. For assistance, follow
the example shown below. In our example, we are assuming a home value of $100,000 and a remaining mortgage balance of $50,000.
If you have any
questions, please speak to a Dollar Bank Representative. Remember, Dollar Bank wants to work with you to create a loan that is best suited to your needs.
|What is the value of your home?||$ 100,000||$________|
|Example LTV percent||x .80||x .80|
|Maximum loan-to-value||$ 80,000||$________|
|Current mortgage balance ||$ -50,000||$ -_______|
|Maximum loan amount||$ 30,000||$________|
To try our loan calculators,
The information presented in this publication is general in nature; it is not our intention to provide specific
advice to individuals or a comprehensive discussion of the subject matter. We suggest that you consult with your
financial or tax advisor, accountant or attorney to obtain specific advice or comprehensive information.