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2006-12-04 13:18:21 · 6 answers · asked by joseph 50 ram 1 in Business & Finance Personal Finance

6 answers

Equity is the value of your home less the amount you owe on it. It is the value of the house that you actually own. If your house is worth $200,000 and you owe $100,000 your equity is $100,000.

2006-12-04 13:21:37 · answer #1 · answered by irongrama 6 · 0 0

Hi,

Equity is basically the difference between what you paid and what it is worth based upon appraisal.

Say you buy a house for $100,000 (HAH) and put down $20,000; your equity is $20,000 the day escrow closes.

The appraised value is based upon "COMPS" or recent SALES of similar homes in YOUR NEIGHBORHOOD.

If property values are growig at 6% a year in YOUR area then you gain an extra $6,000 after a year. If you added a deck, new kitchen and re-landscaped the yard then you will probably get more APPRECIATION.

In short, what you paid minus what someone will PAY.

Be CAREFUL with loan companies if you have a house with a GREAT LOAN! They want YOU out of that loan because it is COSTING THEM MONEY! They will tellyou that your house is worth more than IT IS to get you into a better LOAN FOR THEM! Just know what your house is REALLY worth and do NOT get sucked into something that you can't afford.

Good Luck,
Jacques

2006-12-04 14:19:48 · answer #2 · answered by jacquesstcroix 3 · 0 0

The equity in a house means the amount existing between the true market value and all mortgages or incumbrences there against. For example, if the house was worth $100,000 and there were mortgages or charges registered against it for $40,000, the equity is $60.000.

2006-12-04 13:23:48 · answer #3 · answered by Ted 6 · 0 0

The difference between your cost and the sale amount.

2006-12-04 13:21:36 · answer #4 · answered by G-Man 3 · 0 0

It is the money that is paid toward the principle , and can have a loan against it

2006-12-04 13:20:27 · answer #5 · answered by Anonymous · 0 0

what the house is worth minus what you owe on it.

2006-12-04 13:21:01 · answer #6 · answered by askmike 5 · 0 0

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