Have you ever wished you could take a look into the future and see what things are like? Do you own a home and wish you could estimate the amount of equity you’d have at any given point in the future? If so, we have two videos just for you!
A property’s equity is made of of two simple factors; the value of the home and the amount owed on the mortgage. Simply put, your homes value (the asset) minus the amount of your current mortgage(s) (the liability) = equity. For example, if you own a home worth $500,000 and the current balance of all mortgages is $300,000, you have $200,000 in home equity.
Great! I know both of these numbers today, but how do I determine these two values 10 years from now? Good question! The two short videos below are going to show you just how to do that.
The 1st video takes you through the use of an amortizing mortgage calculator. This calculator will help you determine the principal balance of your mortgage at any point in the future. In addition to the use of this calculator, you should have received a loan amortization schedule with your mortgage documents.
The 2nd video is a compounding calculator. A compounding calculator will assist you in estimating the future value of your home. Once you’ve estimated your homes future value, you can simply subtract your future mortgage balance and BAM! There you have it. A quick look into the future!
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