New KnowEquity When Calculator – Forcasts When Your Mortgage Will No Longer Be Underwater

Millions of borrowers have become victims of bad loan decisions, excessive leverage or adverse market conditions which fostered the collapse in home prices. Yet, more than anything else, most underwater homeowners are victims of unfortunate timing, having purchased homes at or near the peak of prices. Furthermore, with home prices still weak in almost all markets, the underwater sinkhole threatens to swallow even more homeowners.

Given the current market conditions in California the reality is that you will likely to be underwater for some time to come. The question is “how long?”

To answer that question, HSH.com has designed a new and unique mortgage calculator that can tell you when your home and mortgage will no longer be underwater.

Do you want to have a given equity stake in your home by a certain date in the future—like by the time you retire, before an expected move or the start of your child's college education? Many homeowners do. Home equity is an important component of your financial plans, and having none can be a real problem.

Getting your mortgage above water depends on the three factors mentioned above:
Amortization: The continued payment of your mortgage
Appreciation: How quickly home prices recover in your area
Prepayment: Any additional mortgage payments you can make

It is the intersection of these three factors that will tell you the exact date your home equity will return. Stronger home price appreciation or greater prepayments will speed up your time to solvency, while amortization alone will take the longest.

To use the “KnowEquity When” calculator, plug in your initial loan amount, term, interest rate, the date of your first payment, and what you think is the current value of your home, and the calculator will show you when you'll be back to a zero equity level.

If you can afford to pay your loan down more quickly, add in some regular monthly prepayments and see how much that speeds up the time, or even mix in some expected home price appreciation (anything from a fraction of a percent to 5 percent per year) to see how fast you can get back to breakeven.

The “KnowEquity When” calculator also conveniently calculates when you'll hit the typical 6 percent equity stake needed to cover sales commissions so you'll walk away cleanly.

Click Here to Use the “KnowEquity When” calculator.