Debt vs. Equity. Market Capitalization, Asset Value, and Enterprise Value.

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The negative equity for both cars is around 9000. Is it possible for me too trade in both cars towards a lease on one car and if so would a long term lease (3 yrs or something) ultimately get rid of the negative equity? Or is 9000 combined negative equity just too much?

Sorry you are so far in debt on your cars, that is not uncommon. Driving them out is about the only way to work this out.

Buying a Chevy, Ford or Chrysler is a good start, they will often go over 250,000 miles with minimal maintenance if they are kept up.

And buying American brands keeps most of the profits in the U.S., keeps American workers working paying high payroll taxes and helps pay for all our community programs.

I understand that employees take cuts in pay and in return get generous equity. How does that equity materialize in the future? If one is promised, for example, $20,000 in equity but the company suffers, would the employee see that money in the end?

When you get equity, you are getting a portion of ownership in the company. Equity becomes valuable usually when either the company is purchased by another or it sells stock on the public markets (exchange like NASDAQ) also called "going public" or an IPO (initial public offering). When another company buys your company, your stock will be purchased, typically with either cash or the new company’s stock which if a public company, you can sell.

It is difficult to say whether you’ll get any money from your stock if the company suffers but the likely answer is "no". Your stock will probably be common stock which puts you last in line to get money in the event of financial troubles. The investors will get theirs first and rightfully so. With equity, you are basically getting a bet on the success of the company. If the company does well, it could make you a lot of money. It is a very good way to incentivise employees to work hard to make the company a success.

Mortgage cycling is a strategy for building equity in your home and quickly paying down the balance of your mortgage loan. Cycling your mortgage is an effective strategy when executed properly; here are the basics you need to understand before attempting a mortgage cycling strategy to build equity in your home.

Mortgage cycling is a repayment strategy that can shave ten years off the repayment of your mortgage loan.

This is an effective strategy for any homeowner with a couple hundred dollars of disposable income every month. Many people don’t have this amount of cash on hand every month; if you don’t have the money there is still a way to implement this strategy using equity in your home.

Mortgage cycling works by making large equity payments against the principle loan balance of your mortgage, several times every year. Many homeowners make $5,000 equity payments every six months. If you don’t have the cash on hand you can utilize a home equity line of credit to make the equity payments. You will need to pay off the equity line quickly, usually within six months to make the next equity payment. This is necessary to take full advantage of the mortgage cycling strategy.

Making these payments quickly reduces the principle balance and the amount of your monthly payment that is applied to interest.

If you use the home equity line of credit option to cycle your mortgage it is important to shop for a competitive home equity loan as you will have to pay interest, lender fees, and often closing costs to secure this loan. Most of these fees will be one-time up font expenses and you will only pay finance charges when you borrow against the equity line of credit.

It is important to remember that home equity lines of credit come with variable interest rates; when interest rates go up, your payment amounts and finance charges go up with them. You need to factor this expense into your calculations before deciding to go forward with a mortgage cycling plan.

To implement a mortgage cycling plan effectively you need to continue making the equity payments for a period of ten years.

There are risks involved when using a home equity line of credit; because your home equity line is secured with your home if you fall behind on the payments you could lose your home. You can learn more about your mortgage options by registering for a free mortgage guidebook.

To get your free mortgage guidebook visit RefiAdvisor.com using the link below.

Louie Latour specializes in showing homeowners how to avoid common mortgage mistakes and predatory lenders.

For a free copy of “Mortgage Refinancing: What You Need to Know,” which teaches strategies to find the best mortgage and save thousands of dollars in the process, visit Refiadvisor.com.

Claim your free guidebook today at: http://www.refiadvisor.com mortgage cycling payoff quickly

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