You just finished trying to read the bank’s definition of how to calculate a Home Equity Loan. What the &*%$! Who is behind all the rules, restrictions, and roadblocks? Is it time for you to solve this mystery?
How Much Equity Do I Have?
When setting out to solve a crime (and how the banks operate is just that) you need someone to point out the clues and the evidence. I am just the sidekick for your super sleuthing.
The banks act like a criminal mastermind who, through master manipulation and control, have taken your home equity and hid it in their interpretation of the mortgage rules.
Quick example: The home you purchased 5 years ago for 500K is now estimated to be worth 1 million. The bank has appraised it for 850K and because you hold a mortgage on the home for 550K (after refinancing to renovate) you have been declined for a home equity loan.
How is this possible when you have approximately 300K in equity sitting in your home? I will tell you how…the bank and those who pull their puppet strings have committed the crime of the century!
Easy Home Equity Loan Math
However bad the situation seems, there are clues left behind that will assist you in solving the case and finding out the truth about your home equity.
The first clue is in who evaluates your property’s value. When you use the big banks, you need to know that they use their own appraisers and that they use ultra conservative parameters that unfairly decrease the home’s value (they also don’t let you see the report).
When working with me as your Independent Mortgage Agent, you will receive access to the best appraisers who will provide you with your home’s fair value.
The next clue is the amount of debt you hold against the property in mortgages, lines of credit, and any other secured loans (home appliance liens). Once we total this up we can see exactly how much home equity is available to you today.
Quick example: Your home is appraised for 980K and the total of your debt on the property is 550K…the evidence says that you have access to up to 430K. (980 – 550 = 430) What a difference to what the criminal mastermind said was possible, eh?
Borrowing Your Home Equity
Now borrowing the full amount of the value of your home is very unlikely for a lender to agree to. Typically lenders like to see a minimum of 10% of your property’s value to remain in the home after you borrow a Home Equity Loan. More likely they will want to see 20% remaining equity.
Quick example: Home value of 980K X 80% = 784K available to borrow. Then we subtract what is owing and we see the total of what is available to borrow. 784K – 550K = 234K
So how did we get from $0 available to borrow to almost a quarter million available to you in a Home Equity Loan?!?
Elementary my dear, elementary. When you deal with the devil you get defeated every time because the game is rigged. Now the game is up and you have busted the banks. You solved the crime of the century. Congratulations!
Work with a company that is education oriented not product oriented. It should only take a few minutes of a phone call to know you are not being listened to and slowly directed into the one size fits all solution box that some banks have. A good Home Equity Loan provider will give you plenty of options and educate you along the way.
Find out more about all of the things you need to know about your Home Equity Loan Made Simple
You Calculate Your Home Equity
So what do you have to lose by allowing the banks to dictate what you can and cannot do with your home equity? In simple terms….defeat. The bank wins and you stay put and you don’t achieve the goal that motivated you to pursue a Home Equity Loan in the first place.
But I noticed that you have read this far…that like me you cannot sit back and let this injustice continue. My hope is that you will let your curiosity get the better of you and see this as a mystery to be solved. A crime to unravel.
That you would become recognized by those you care about as the one who is to be looked to as the source of this information. That is the goal. Now, this is your moment…contact me and let’s go solve the case!