Hi {first_name},

 

Equity... 

 

As you might already know, Equity is simple math equation...

 

Equity = Current value of your home MINUS What you owe on your current mortgage 

 

Let's simplify it....if you bought your home for $250,000 and have paid 50% of your mortgage off, then your debt on that home is $125,000.

 

Oversimplified?

 

Yes, but let me explain...

 

Now imagine that your home gets valued at $400,000…a great investment! 

 

So if you take your outstanding $125,000 debt off of the current valuation, you’re left with $275,000 in home equity.

 

Not too bad, huh?

 

You have several options now...

 

One of them is to refinance for an amount greater than what you owe on your current home. 

 

This way, you can receive the difference in a cash payment. This is how cash out refinancing works...

 

Now you can take some of that equity out and put it to good use (mentioned quite a few ideas in the previous email). 

 

For example: you could increase the value of your home by investing your money into a new kitchen, bathroom, landscaping, or maybe even a swimming pool…

 

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P.S. Continuing on the four Cs theme.

 

First of all… Credit.

 

Well, this one’s the more simple one of the bunch.

 

But… just because you have excellent credit of say 800, doesn’t mean that you can skip ahead with no paperwork.

 

You still have to prove how much you earn and where your assets come from.

 

In the next email, I’ll share with you the next “C”, or, Capacity (DTI).

 

I’ll also explain both ends of DTI…

 

Both ends?

 

Yes, lookout for the next email.