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What is equity reserve?

Updated: 4/28/2022
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9y ago

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An equity reserve is a share of the equity in a home that is reserved in protection of the loan outweighing the value of the home. In a traditional loan, the loan proceeds have a safe ratio compared to the estimated value of the home.

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9y ago
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Q: What is equity reserve?
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Related questions

Are reserves equity?

Yes reserve is part of equity as it is created from net income and net income is part of equity as well.


Where does revaluation reserve go on the balance sheet?

Revaluation reserve is part of equity of business as shown under equity section in liability section of balance sheet.


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Debit Loan and credit Capital Reserve


How do you calculate adjusted leverage ratio?

The Formula should be : = Liabilities / Adjusted Networth ( Adjusted Networth : Shareholder's equity minus revaluation reserve ( intangible in nature)) Save


Where can one find information on refinancing the home mortgage equity loan?

The Federal Reserve website offers a consumer's guide to mortgage refinancing. Some bank websites, such as University Credit Union for example, offer information on the advantages and disadvantages of refinancing vs. home mortgage equity loans in particular.


Difference between equity and owner's equity?

EQUITY:- Equity is the term in which liability is introducedOwner Equity :- Owner Equity is the term in which liabilty and owner capital is introduce...it is some time called Equities....


What is net equity?

net new equity is given by the formula; new equity-old equity- addition to retained earnings


What is the singular possessive of equity?

The possessive form of the singular noun equity is equity's.


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What is the equity multiplier if a company has a debt equity ratio of 1.40 return assets is 8.7 persent and total equty is 520000?

The equity multiplier = debt to equity +1. Therefore, if the debt to equity ratio is 1.40, the equity multiplier is 2.40.


Is capital reserve a free reserve?

capital reserve is not a free reserve


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net new equity is given by the formula; new equity-old equity- addition to retained earnings