2006-07-08 12:51:04 · 9 answers · asked by natasha 1 in Business & Finance ➔ Renting & Real Estate
Equity is the difference in the balance due on the mortgage and the value of the real estate. Equity can be created either by paying the principal down, appreciation in value, or combinations of both.
2006-07-08 15:39:42 · answer #1 · answered by hithere2ya 5 · 0⤊ 0⤋
Equity is the difference between what a house is worth and what you still owe on it.
For example, you buy a house for $100,000 and live in it for a year, paying your mortgage. Now you owe $99,000 on your mortgage, but your house value has risen to $103,000 over the last year. You now have $4,000 equity in your house. Many institutions will lend you the value of your equity at very reasonable rates, because if you default on the loan, they get your house!
2006-07-08 19:58:10 · answer #2 · answered by Anonymous · 0⤊ 0⤋
A homeowner's financial interest in a property. Equity is the difference between the fair market value of the property and the amount still owed on its mortgage and other liens.
2006-07-10 04:53:50 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Current Appraised value of the home minus mortgage amount = equity amount.
EX
Appraised for $150,000 - Mortgage is $100,000 = $50,000 Equity
2006-07-09 20:10:40 · answer #4 · answered by unclejesse1 3 · 0⤊ 0⤋
It's the amount of money that your house is worth, but don't owe.
For instance, your house is worth $100,000. You owe $75,000
your equity is $25,000
2006-07-08 19:54:55 · answer #5 · answered by Jessie P 6 · 0⤊ 0⤋
equity is the good part of owing a property, it's money saved in your house, that good part is that over the time it increases and your debt decreases so when you sale your home you have lots of money..
2006-07-09 00:49:36 · answer #6 · answered by chacio 2 · 0⤊ 0⤋
Equity is what the market price is.
2006-07-08 19:54:50 · answer #7 · answered by wardspirit 2 · 0⤊ 0⤋
The total amount you have paid so far on the house.
If your house cost $100,000, and you've paid $45,000, you have $45,000 equity.
2006-07-08 19:54:16 · answer #8 · answered by Anonymous · 0⤊ 0⤋
It's the differance between what you owe and what it appraised for in othewr words what it's worth.
2006-07-08 20:07:51 · answer #9 · answered by howaboutit99@sbcglobal.net 2 · 0⤊ 0⤋