There is another term that is usually confused with the home equity line of credit and this is the equity loans. The two cannot be compared at all. Equity loans give money in a whole package all at once, while the equity line of credit provides a certain amount of money that has room for flexibility, moreover getting money for emergencies will not be a problem.
How to use a heloc calculator
Having grasped the knowledge on what a heloc calculator is, the other thing left is to know exactly how it works and how to use it if need arises. An online heloc calculator is easier to use as it comes with a user manual. The user manual simplifies the process of understanding how to efficiently use a heloc calculator by outlining features where the values of certain things are to be recorded. These features include:
- A place where the appraised value of property is to be recorded.
- Space for current balance of mortgages to be recorded. This is by putting the total of all current accounts or mortgages against the total value of the property.
- Loan to value ratio column.
Through the figures collected above, the line of credit available can be calculated and then the other calculations proceed as follows:
- LTV {loan to value ratio} of the appraised value that the lender is willing to offer column.
- Less outstanding mortgages costs and fees column.
- Then lastly the equity line of credit qualified for is also recorded in the calculator since it is a special one which does not only take mathematical figures but also other things like the names of equity line of credit qualified for.
The importance of a heloc calculator
As its features imply, a heloc calculator has proven to be very useful in many aspects and thus some of its major merits are as follows:
- Time saving:-the heloc calculator saves time since it does not require a lot of formalities.
- Simplicity:-it is simple to use because all the features are already outlined and all that is needed is to put the figures in specific areas.
- Easy to find:-the heloc calculator is easy to find since most websites offer it.
- Cheap to get and maintain:-it is very cheap to get as some websites offer it for free and no maintenance fee is required.
- Easy to understand:-the features in a heloc calculator are self explanatory as they do not require classes so as to be understood.
Where to get heloc calculators
Heloc calculators can be found in different places online like:
- Wachovia
- Wells Fargo
- Bank of America
- Bank rate
- Amerisave
When looking for the best heloc calculator it is good to know if its qualifications have reached the target because at times interest rates are higher than the advertised.