Line of credit A line of credit is a method that is utilized to tap into any equity built up in a particular property. It’s a deposit for the investment made on property. It permits you to withdraw a fixed amount to pay for whatsoever you wish for. It’s similar to a credit card with a huge limit, and the equity in the home proceeds as security for the loan. Loan amount – Total amount that you would like to borrow for the investment purpose. If you don’t hold your own money to the investment, then it would be the amount of your investment also. Loan term in years – This indicates the tenure in years to repay the loan. Loan interest rate – This is the percentage rate of interest, charged on the total amount of loan by the creditor. This is calculated as a monthly compounded interest rate. Opening investment value – This is the primary value of the planned investment. In case, the investment is made exclusively by the borrowed amount, then this is equivalent to the loan amount entered by you formerly. Also, the money from other loan along with the borrowed fund is calculated as the invested value. Investment rate of return – The yearly expected rate of return that compounds annually from your chosen investment. In reality, the actual rate of return may not be similar. Percent reinvested – This is the portion of return from the presently planned investment that is going to be re-invested. In case, your planned investment contributes you $3000 every month, and you are reinvesting 60% of the monthly return, then the anticipated amount of reinvestment will be $1,800.
For instance, in order to calculate your Monthly Payment, choose Monthly Payment. Fill-in your Principal loan amount, Interest Rate and then click ‘Calculate’ to get your Monthly Payment.