Business Terms and Jargon Explained
What is Equity Line
Is 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
75%
= 150,000
Less outstanding mortgages ,loans
= 70,000
Credit line
= 80,000There are other factors that will affect your equity line and equity rates e.g.
Ability to pay
Income
Current debts
Financial accountability
Financial responsibility
Credit history
Age of mortgage
Partners
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Term created / updated 2006-03-28 10:29:31
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