Also known as Home Equity Mortgage. Chances are the value of your home has increased since you bought it. At Alpine Credits, a home equity loan can get you access to money based on the increased market value.
To calculate how much you can borrow with a home equity loan simply use this equation:
PRESENT VALUE OF YOUR HOME – THE AMOUNT OWING ON YOUR MORTGAGE = HOME EQUITY
If you bought a home 20 years ago for $200,000 and have paid $150,000 of your first mortgage you now only have $50,000 remaining to pay.
Over the 20 years you have owned the home, its value has increased giving it a present day value of $750,000. By taking the present day value and subtracting the amount remaining on your mortgage you will get your home’s equity.
$750,000 (PRESENT DAY VALUE) – $50,000 (AMOUNT REMAINING ON INITIAL MORTGAGE) = $700,000
With an Alpine Credits home equity loan, you could have access to a portion of your home’s equity within a week.