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How 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. 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.

Example
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 $________

 

Try our loan calculators.

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