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 Sam
Site Admin
Joined: 21 May 2005
Posts: 286
Location: CALIFORNIA
120.33 Dollars($)
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 Posted: Tue Mar 30, 2004 4:31 am Post subject: Equity |
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Equity is an owner's financial position in a property. Equity is the difference between the fair market value of a property and the unpaid principal balance of the mortgage and any liens. It is also known as an ownership interest- the value an owner has in real estate over and above the obligation against the property.
For example, let the fair market value of a property be $500,000 and let the unpaid principal balance of the mortgage be $200,000. Therefore,
Home Equity = Fair market value - Unpaid principal balance of the mortgage
Home Equity = $500,000 - $200,000
Home Equity = $300,000
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Tina
Guest
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| Posted: Tue Sep 25, 2007 1:03 pm Post subject: Home Equity |
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| Is there such a loan where you can take out loan and have the loan paid back to the bank when the house is sold? I bought my house in Brentwood Contra Costa area 10 years ago for the price of $229,000 and I would say my house could sell easy for $500,000 or more. We would like to make some improvements, but don't want to add more to our monthly mortgage payment now. We owe about $198,000 still on the house |
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larry
Joined: 27 Jun 2007
Posts: 3328
474.61 Dollars($)
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