Home Equity Shield Computation Method
 
The example below provides a simple explanation of how to compute the Intrinsic Value (IV) of your home's equity when determining your cost under the Home Equity Protection Services programs.

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EXAMPLE:
- Bob purchases a home for $300,000 USD.
- Bob makes a $30,000 down payment towards the purchase of his            home.
- Bob makes $2,500 monthly payments, of which $700 / month goes toward   the principle.
- ​Year One Bob invest another $25,000 in remodeling.
- Year One Bob makes $8,400 in principle payments.

To determine the current “Intrinsic Equitable Value” (IV) of Bob's home, we compute Bob's Out-of-Pocket cost as follows:

$30,000 IV – Down Payment
$25,000 IV – Home Improvements
$  8,400 IV – Principle Payments =
$63,400 IV (Total Intrinsic Value)

$63,400 IV (Total Intrinsic Value)​
x       6.5% of IV  (Tier Rate) =
$4,121.00 (Secured IV Fees only)

In the above example, the cost of protecting 100% of the Intrinsic Value of Bob's $63,400 investments is $4,121.00 or 6.5 percent. Once secured, the value of Bob's equity remains protected for as long as he owns his home. Future equitable value is protected under the Max Shield monthly membership plan. Cancellation of your membership agreement does not terminate the existing equity you have secured and protected in your home.   



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