Calculating your home equity

Calculating equity is simple: You take the market value of your home and subtract any outstanding mortgages or liens. So if you have a $100,000 home and there's $60,000 left to repay on your mortgage, your equity would equal $40,000.
The amount of equity you have is not constant, however. It changes depending on your home's value, market conditions, and the terms of your mortgage. The simplest way to increase your equity is to pay off your mortgage. The more you pay towards the principal, the more equity you accrue.
In the beginning, most of your payments will likely go toward the interest, so you will build equity much slower in the first couple of years in your new home. You can build equity faster if you shorten the term of your mortgage, as more of your payments go toward principal. Once you've paid off your mortgage, the lien on the title will be cleared, and you'll own 100 percent of your home.
You can also increase your home's equity by making improvements that increase its value. Be careful here, however, as you rarely recoup the full cost of renovations. The best strategy is to make renovations that bring your house up to par with other houses on the block and to avoid souping up your house with upgrades and designer appliances the rest of the neighborhood doesn't have.
Best of all, your equity may increase without you doing anything. If property values in your area increase, so will your equity, as it's based on market values. Using the above example, if property values in your area increase by eight percent, your equity would equal $48,000.
But housing market conditions are affected by a number of things, including interest rates, inflation, and the economy. And while houses tend to appreciate over time, it is possible for these conditions to lower property values, resulting in a decrease in your equity. In a worst-case scenario, this could lead to negative equity, where the amount of your mortgage exceeds the value of your home.
Negative equity can also result from an interest-only mortgage. In these cases, your monthly payments may be covering just the interest or only a portion of it. At the end of the interest-only term, you still owe the lender the principal as well as any unpaid interest, making it possible that you owe more than the market value of your home.
To help avoid negative equity, make sure at least some of your mortgage payments are going towards the principal, and try to buy a home in an area where property values are increasing.
The good news is that national home values generally appreciate by an average rate of five percent per year. And on the whole, home prices have risen steadily since 1968, increasing by 8.8 percent in 2004, according to the National Association of REALTORS®. This wealth is readily accessible through home equity loans, which tend to have lower interest rates and may have tax benefits.

How to turn your home equity into cash

Perhaps you'd like to remodel your home, fund your child's education, or buy a new car. Or maybe you need money to consolidate your debts, recover from a financial setback, or respond to a family emergency. A home loan can offer ready cash so you can address a variety of situations.

What is equity?

The source of this cash is called equity, which is the current value of your home, minus however much you currently owe on any existing mortgages or other home loans.
For example, if your home is worth $300,000 and you owe $280,000 on your mortgage, your equity is $20,000. Or if your home is worth the same $300,000, but you owe $250,000 on your mortgage, your equity is $50,000. Essentially, equity equals appraised value minus debt.
If the amount you owe on your home is more than the value of your home, this calculation would result in a negative number and your equity would be zero. This is sometimes referred to as being "upside-down" on your home loan.
Most homeowners need positive equity to borrow against their home. Those who have an exceptionally high credit score may be able to borrow up to 125 percent of the home's value, meaning that they would owe more than their home was worth.

Refinance to access your home equity

One way to turn the equity in your home into ready funds is to refinance your first mortgage for a larger amount and take the difference in cash. This option is called cash-out refinancing.
For example, if your home is worth $300,000 and you owe $200,000 on your mortgage, you might want to get a new mortgage for $270,000. Of that amount, $200,000 would be used to pay off your original mortgage and $70,000 would be yours to use for other purposes. In this example, you would still have $30,000 of equity in your home.
A new first mortgage usually makes sense only if the interest rate on the new mortgage would be significantly lower than the rate on your current one. Essentially it allows you to "cash out" a specific sum that you'll repay over the term of your new mortgage (usually 15 or 30 years).

Line of credit offers flexibility

Two other ways to tap into equity are through a home equity loan or a home equity line of credit. A home equity loan involves a specific sum of money and a set repayment schedule. A line of credit works a lot like a credit card, but the money is secured by your home.
A home equity loan can be appropriate if you want to borrow a specific sum, say, $10,000 or $25,000, immediately, and you want to make regular monthly payments over a set period of time, such as 10 or 15 years.
A home equity line of credit is a good option if you don't know how much you want to borrow, don't need the money right away, or want to repay any money that you borrow within a short time. Some homeowners set up a home equity line of credit just in case of a future financial need.
A refinanced first mortgage will typically carry a lower interest rate than a home equity loan or line of credit, but refinancing usually includes significantly higher up-front costs. If you're planning to access your home equity, it's a good idea to compare the interest rates, costs, and monthly payments before you make a decision on which type of loan is right for you.

Home equity line of credit or a home equity loan: Which is right for you?

If you're a homeowner, you can borrow against the value of your house through either a home equity line of credit (often called a HELOC or a line) or a home equity loan (often called a HEL or loan). Both are essentially a second mortgage.

What's the difference?

A HELOC is a form of revolving credit similar to a credit card. It allows you to draw funds, up to a predetermined limit, whenever you need money. There is generally a minimum payment due each month, with the option to pay off as much of the line as you want. With a HEL, you receive a lump sum of money and have a fixed monthly payment that you pay off over a predetermined time period. In each case, the amount you can borrow is based on factors such as your income, debts, the value of your home, how much you still owe on your mortgage and your credit history.

Benefits

The appeal of both of these types of loans is their interest rates, which are almost always lower than those of credit cards or conventional bank loans because they are secured against your home. In addition, the interest you pay on a home equity line or loan is often tax deductible (consult a tax advisor about your particular situation).

Which is best for you?

Generally, a HELOC is a good choice to meet ongoing cash needs, such as college tuition payments or medical bills. A HEL is more suitable when you need money for a specific, one-time purpose, such as buying a car or a major renovation.

Comparing the costs

Both HELOCs and HELs usually carry a higher interest rate than that of a first mortgage. With a HEL, you may choose either an adjustable rate that fluctuates according to variations in the prime rate, or you may opt for a fixed rate. A fixed rate enables you to budget a set payment monthly without worrying about increasing costs should interest rates rise. With a HEL, there are also closing costs that you should consider.
A HELOC usually carries a lower initial interest rate than a HEL, but its rate fluctuates according to the prime rate, so there is more interest rate risk. Unlike a HEL, where your monthly payments are a set amount, a HELOC enables you to borrow funds as needed and repay as little as interest only each month. In addition, there are generally no closing costs when you open a HELOC.
Keep in mind, your home is the collateral for both a HELOC and a HEL. If a HELOC's easy access to cash tempts you to run up more debt than you can repay, or if you fail to make your payments, you risk losing your house.

	Home Equity Line of Credit (HELOC)	Home Equity Loan (HEL)
What you get	Revolving credit, with a specific credit limit of up to 100 percent of the value of your home (its value minus all debts against it). Some lenders will allow you to borrow up to 125 percent of the value of your home.	A fixed amount of money, up to 100 percent of your equity in your home (its value minus your first mortgage debt and other debts). Some lenders will allow you to borrow up to 125 percent of the value of your home.
How to qualify	You typically need to provide proof of your income, home ownership, your mortgage and how much equity you have in your home. An appraisal is usually required as well.	You typically need to provide proof of your income and home ownership, and proof that at least 20 percent of the value of your home is paid off. An appraisal is usually required as well.
How you repay it	Minimum payments (as little as interest only) each month; eventually you have to repay the entire sum borrowed plus interest.	Fixed payments of interest and principal over a fixed period of time.
How long it lasts	You have a 10- to 20-year period when you can draw on the line (up to the credit limit), after which you have a fixed period to pay off the outstanding balance plus interest.	The term of the mortgage can be as short as a year or as long as 30 years.
Costs and fees	Usually no closing costs, but may have an annual fee.	Closing costs that are lower than for a first mortgage.
How you receive the money	You draw funds as needed, using special checks or a credit card.	You receive one up-front lump sum.
Interest rate	The prime interest rate plus a margin (which can vary from one institution to another).	A fixed or adjustable interest rate.
Tax status	Interest may be tax-deductible (consult a tax advisor).	Interest may be tax-deductible (consult a tax advisor).

Cash credit

A cash credit is a short-term cash loan to a company. A bank provides this type of funding, but only after the required security is given to secure the loan. Once a security for repayment has been given, the business that receives the loan can continuously draw from the bank up to a certain specified amount. -prearranged loan that a business does not have to take until it is needed.

Line of credit

A line of credit is any credit source extended to a government, business or individual by a bank or other financial institution. A line of credit may take several forms, such as overdraft protection, demand loan, export packing credit, term loan, discounting, purchase of commercial bills, etc. It is effectively a bank account that can readily be tapped at the borrower's discretion. Interest is paid only on money actually withdrawn. Lines of credit can be secured by collateral or unsecured.
Lines of credit are often extended by banks and financial institutions to creditworthy customers to address liquidity problems; such a line of credit is often called a Personal Line of Credit. The term is also used to mean the credit limit of a customer, that is, the maximum amount of credit a customer is allowed.

Home equity line of credit

A home equity line of credit (often called HELOC and pronounced HEE-lock) is a loan in which the lender agrees to lend a maximum amount within an agreed period (called a term), where the collateral is the borrower's equity in his/her house. Because a home often is a consumer's most valuable asset, many homeowners use home equity credit lines only for major items, such as education, home improvements, or medical bills, and choose not to use them for day-to-day expenses. HELOC abuse is often cited as one cause of the subprime mortgage crisis.

Jerry Lewis

Lewis has been married twice:
• First Wife: Patti Palmer (née Esther Calonico), a former singer with Ted Fio Rito; married October 3, 1944, divorced September 1980.
• Second Wife: SanDee Pitnick; married February 13, 1983; a 32-year-old Las Vegas dancer. They were married in Key Biscayne, Florida; Lewis was 56.
He had six sons and one adopted daughter:
• Gary Harold Lee Levitch was born on July 31, 1945 to Lewis and Patti Palmer. Gary Levitch's name was subsequently legally changed to Gary Lewis. As a 1960s pop musician, Gary Lewis had a string of hits with his group Gary Lewis & the Playboys.
• Ronald Lewis; adopted July 1950 with Patti Palmer
• Scott Lewis; born February 1956 to Patti Palmer
• Christopher Joseph Lewis; born October 1957 to Patti Palmer
• Anthony Lewis; born October 1959 to Patti Palmer
• Joseph Lewis; born January 1964 to Patti Palmer, died October 24, 2009 from a narcotics overdose.
• Danielle Sarah Lewis (daughter); adopted March 1992 with SanDee Pitnick.
Lewis currently resides in Las Vegas, Nevada.

Melissa Molinaro

Melissa Molinaro (born June 4, 1982) also credited or known as Melissa S. or Melissa Smith is a Canadian, pop singer, actor, choreographer and model. She is perhaps best known for her reality TV appearances on Making The Band 3 and Pussycat Dolls Present: The Search For the Next Doll. She is currently recording her debut pop/dance album scheduled for 2011 release, recently co-starred in Dolph Lundgren's action film, Command Performance, and had a major role in Honey 2 (2011). She adopted her mother's maiden name Molinaro as her professional name. Melissa has received notable attention from her appearance in Old Navy's "Super C-U-T-E" commercial in 2011. The video for "Dance Floor", the first single from Melissa's debut album "The Love/Dance Project" features choreography by JaQuel Knight had its debut on YouTube on 24 February 2011.

Bam Margera

Margera was previously engaged to Jenn Rivell, a divorced single mother six years his senior. Rivell played a prominent part in several of his projects and the couple appeared to be co-habiting in various episodes of Viva La Bam. However, the relationship ended in 2005. In November 2006, Margera filed for "Protection From Abuse" from Rivell after she allegedly broke into his house. He further alleged that Rivell had exhibited irrational and aggressive behavior towards him on several previous occasions including stealing several computers and vandalizing his house immediately after their initial breakup. The judge dismissed the allegations as "speculative" and "hearsay". Their break-up was attributed to rumors Margera had slept with pop star Jessica Simpson, which Margera initially denied before admitting they had been "intimate". Margera reasserted that nothing untoward had happened after he and Simpson met at an MTV Video Music Awards after-party in 2006.
In 2006, Margera became engaged to childhood friend Melissa "Missy" Rothstein. The events leading up to their wedding (with about 350 friends and family in attendance) on February 3, 2007, in downtown Philadelphia, were chronicled on the MTV series Bam's Unholy Union. The couple's honeymoon was in Dubai. In 2008, during an appearance LA Ink, Bam told Kat Von D about $13,000 in damages done to the hotel for his marriage, saying " I was kind of ready for it though. I was like: 'I’m inviting the Jackass crew. If something doesn’t get broken then that’s not right'."
In July 2009, Margera was taken to the hospital by paramedics and state troopers from his West Chester home after his wife Missy called 911 after a four day alcohol binge. On the drinking binge, Margera said "I may get a divorce . . . booze helps." In October 2010, Margera told Howard Stern he and Missy were living in separate cities, they meet once a week and Missy knows about his girlfriend in San Francisco and another in West Chester.

Demi Moore

Moore's primary residence is in Hailey, Idaho, near the famous Sun Valley resort, although she spends much time in the Los Angeles area with Kutcher. She also owns a waterfront mansion on Sebago Lake, Maine. She is a practicing follower of the Philip Berg's Kabbalah Centre religion, and initiated Kutcher into the faith, having said that she "didn’t grow up Jewish, but ... would say that [she has] been more exposed to the deeper meanings of particular rituals than any of [her] friends that did. Contrary to popular belief, Moore claims she has never been a raw foodist and dispelled the vegan rumors by eating a hamburger in a recent Mario Testino photo shoot.
Moore legally changed her last name to Kutcher two years after marrying Kutcher. However, she continues to use Moore in her professional life. According to the New York Times, Moore is "the world's most high-profile doll collector," and among her favorites is the Gene Marshall fashion doll.

Megan Fox

Fox has been involved with actor Brian Austin Green since 2004, having first met on the set of Hope & Faith when she was 18 and he was 30. In 2006, they became engaged, and then broke it off in February 2009. Some time later in 2009, Fox was targeted by a group of fashion-motivated criminals known as "The Bling Ring", who robbed Green's home because she was living with him. Fox and Green were engaged again in June 2010, and just a few weeks later, on June 24, 2010, the two wed in a private ceremony at the Four Seasons Resort on the Big Island of Hawaii.

Deep-Fried Kool-Aid Balls

Just when you thought all the ridiculous things in the world had already been fried, here come deep-fried Kool-Aid balls. The balls, which inventor and carnival fried-food legend Charlie Boghosian makes by popping scoops of Kool-Aid batter into the deep fryer, debuted at the San Diego County Fair and have become hot sellers and a bona fide Twitter trend.

Jill Scott

Scott and longtime boyfriend Lyzel Williams, a graphic artist and DJ, married in 2001 in a private Hawaiian ceremony during a vacation. The couple dated for seven years before they wed. Scott wrote and recorded the song "He Loves Me (Lyzel in E Flat)" about Williams. After six years of marriage, Scott and Williams divorced in 2007.
On June 20, 2008, at a concert in New York's Carnegie Hall, Scott shared a long on-stage kiss with her drummer, Lil' John Roberts; the couple then told the audience that they were engaged. They expected their first child on April 25, 2009 but the baby boy, Jett Hamilton Roberts, arrived five days earlier. On June 23, 2009, Scott announced that she and Roberts had broken up, with Scott breaking the news to Essence. Despite the break-up, Scott hopes for both parents to have an active part in their child's upbringing, stating that "We definitely love our son and we are co-parenting and working on being friends. It is what it is. I have a lot of support, so I want for nothing as far as that's concerned." During her 2010 tour with Maxwell, Scott has introduced her music band and Roberts is no longer a member. He is now a member of Mo'Nique's band on The Mo'Nique Show.

Tatum O'Neal

One of O'Neal's first public boyfriends was pop star Michael Jackson, whom she dated in the late 1970s to early '80s. In 1986, O'Neal married tennis player John McEnroe. No one from her family attended the ceremony. The couple have three children: Kevin (born 1986), Sean (born 1987) and Emily (born 1991). They separated in December 1992 and were divorced in 1994. Following the divorce, O'Neal's drug problems reemerged and she developed an addiction to heroin. As a result of her drug problems, McEnroe obtained custody of the children in 1998.
O'Neal was estranged from her father for 20 years.

Rita Wilson

She has been married to actor Tom Hanks since April 1988, with whom she has had two stepchildren and two children, Chester, or "Chet" (who has a small part as a student in Indiana Jones and the Kingdom of the Crystal Skull and released a rap single in 2011[24]), and Truman. She contributed to the Moffitt Cancer Center by donating "True Hearts" jewelry made of sterling silver and 14k gold. The proceeds will benefit several charities. Wilson credits good friend Rosie O'Donnell as inspiration for her charitable work, particularly with cancer and children's charities.[5] She is a member of the Greek Orthodox Church.[6]
In the director's cut of the Tom Hanks film That Thing You Do!, her brief appearance as a cocktail waitress named Marguerite has another scene, in which main character Guy Patterson (Tom Everett Scott) drunkenly calls her Margarita, a reference to Wilson's real-life first name.

Half Past Now’

  I wonder which is more exciting to be; living life knowing that I am going to die some day, or dying death knowing that I am going to live on that same exact day.