How to Calculate Home Equity Loan

Video Transcript

"Hi, so you're a home owner and you're wondering how to calculate HELOC or home equity line of credit or a second mortgage. No problem, I'll be able to answer that for you. My name's Adriel Torres and I'm the owner of ultimatecredittoday.com. Now there are different types of equity lines of credit. One of them's called HELOC. One of them's called a second mortgage. To calculate these you would need the interest rate and you will need the term of the loan whether there was a 10 year or a 15 year or a 20 year whatever the case may be. You also need to know what the loan amounts going to be. Once you have those three figures you can easily plug those into a mortgage calculator, you can find thousands online and then it'll give you the calculations or the payment for that note or for the home equity line of credit. Now HELOC works a little different. On a home equity line of credit you will still need those three figures but you'll only going to be making the payment on the portion that you're using. So you have a 50,000 dollar line of credit but you're use, only using 20,000 then you're payments going to be based on that 20,000 and not the entire 50,000. And that's how you calculate payment on a equity line for your home. Again my name's Adriel Torres and I'm the owner of ultimatecredittoday.com. Thank you very much."