Equity Loan Calculator Tips

Video Transcript

"This is Financial Adviser, Patrick Munro talking about what is an equity loan calculator. An equity loan calculator is a tool either software based, or manual based which will help a bank or a financial institution, or even a borrower establish what degree of equity they have in their asset. The word equity means the amount of ownership that the borrower has achieved over the loan that it took to receive their asset. For instance: if you have a hundred thousand dollar loan, and you put twenty percent down, you have inherently got twenty thousand dollars of equity in a one hundred thousand dollar asset. Ten years later, if you've paid your mortgage down to seventy thousand dollars, you now have thirty thousand dollars of home equity, which you can then take out under guidelines. There's a certain amount of money that a bank always requires to be on tap, they won't let you take all of your equity out, so therefore you can use a calculator to find out what your equity loan value, that is available to you. This is Patrick Munro talking about the various types of equity lines of credit calculators."