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Financial Goals:
- Upgrades to home such as landscaping and replace windows.
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Middle aged
couple with two children |
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Appraised value of home $225,000. |
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Balance on mortgage account $160,000. |
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Balance on car
loan $8,000. |
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Balance on credit cards $3,000. |
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Set up a Global Limit of 90% of the value of the home ($225,000). |
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The family now has $42,500 outside of their mortgage to divide among whichever financial products they choose. |
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They establish one line of credit for home renovations and another line of credit to pay out the car loan, credit cards and remaining balance is available as emergency funds or could be used towards the purchase of the new car next year. |
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Within 10 years, the total outstanding borrowings are expected not to exceed 75% of the value of the home. |
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Borrow back up to the global limit of 75%, WITHOUT HAVING TO REAPPLY OR INCUR ADDITIONAL LEGAL FEES. |
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