Online Calculators You Can Use Before Tapping On Your Home Equity

Online Calculators You Can Use Before Tapping On Your Home Equity
June 16 16:26 2019 Print This Article

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Homeowners can use their home equity for different endeavors. You can use this to fund home improvement projects, consolidate debts, pay for a luxurious vacation, or as emergency funds. But how can one tap on your home equity?

With a Home Equity Loan, you’re entitled to borrow against your home’s market value.  This is a second mortgage since your first mortgage is technically the first home loan you used to finance the home purchase.

One only needs to find a mortgage lender who will grant you with a home equity loan. The home equity loan rates will depend on your home’s appraised value and the amount you still on your first mortgage.

A Home Equity Line of Credit also allows you to tap in your home equity. However, with a HELOC, it enables you to draw money as you need it. For home equity loans, what you get is a lump sum.

However, home equity loans and HELOCs are not for everyone. Sure, you’re able to pay your monthly mortgages on time comfortably. But are you financially ready to take in a second mortgage?

Good Read: Comparing Home Equity Loans Versus Lines of Credit

Are you thinking about applying for a home equity loan or HELOC? Then it’s best to use an online calculator first to check if you’re eligible for a home equity loan or HELOC and which one will work best for you.

Here are some of the online calculators you can use.

Bankrate’s Home Equity Loan Vs. Line Of Credit Calculator

This tells you if you should get a home equity loan or a HELOC (Home equity Line Of Credit). One needs to answer a simple question first. Are you planning to borrow money periodically or not? You may or may not need to answer more questions, depending on your answer to the previous question.

Nerdwallet’s Home Equity Loan Calculator

Nerdwallet has a free calculator that helps you determine if you’re qualified for a home equity loan. One only needs to enter your home’s current value, your current outstanding mortgage, and your credit score. The result will show your current LTV or Loan-To-Value ratio and

the amount you’re eligible to borrow if you’re qualified for a home equity loan.

Good Read: Loan-To-Value Ratio – LTV Ratio Definition

Bankrate’s Home Equity Calculator

Bankrate has lots of free online calculators, including a home equity calculator. It helps you determine your LTV ratio and how much equity you’re eligible to borrow. Make sure to enter the correct details such as your home’s address, the estimated home value, your current credit score, and how much is your estimated mortgage balance.

Bankrate’s Home Equity Line of Credit Calculator

Another calculator from Bankrate allows you to check if you’re eligible for a HELOC and how much you can get out of the loan. It will ask you for your home’s current value, how much your mortgage’s outstanding balance is, and your credit score. Depending on your LTV results, it will tell you how much you can funds you can borrow.

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Clare Louise
Clare Louise

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