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Business Terms and Jargon Explained
What is Equity LineIs the same as equity loan.
It is the amount of credit you can get on your property or properties.
This
collateral based credit line is calculated on the bases of the appraised value
times a percentage (let say 75%) and then deducts the amount outstanding on
mortgages and other loans on the property.
Appraised value |
= 200,000 |
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75% |
= 150,000 |
Less outstanding mortgages ,loans |
= 70,000 |
Credit line |
= 80,000 |
There are other factors that will affect your equity line and
equity rates e.g.
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Ability to pay
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Income
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Current debts
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Financial accountability
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Financial responsibility
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Credit history
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Age of mortgage
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Partners
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Term created / updated 2006-03-28 10:29:31
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