Worksheet 1
This calculation worksheet is used to establish how much potential equity a customer may have on the property. Potential equity is based on the initial estimate of the current market value. The underwriter will calculate the actual equity after the appraisal is completed.

Items to Consider
• What is the property type
   (Single Family Residence, Co-op, Condo, Manufactured Home)?
• Is it a Primary Residence or Secondary Home?
• Does the applicant have an existing mortgage?
• Is the customer applying for the No Income Verification    program?

If the customer would like more than the CLTV stated, you may be able to calculate at a higher CLTV provided that the customer meets the qualifications.

Calculating Potential Equity
Use this worksheet to establish how much potential equity a customer may have on the property. Enter the information requested in each box that says "Enter" and corresponding items will be calculated for you. To begin, place the cursor in the first box and click the mouse. Enter numbers without commas.

Calculating Actual Equity
After the appraisal is complete, the underwriter will determine the actual equity that the customer has, which will always differ from the potential equity. Actual equity is calculated using the following steps.

1) The first mortgage balance and the home equity line/loan amount are added together.
2) The sum from Step 1 is divided by the appraised value.
3) The result from Step 2 is multiplied by the appraised value.