2007-01-18 15:50:15 · 14 answers · asked by oliveoil 2 in Business & Finance ➔ Renting & Real Estate
If your house is "free and clear", meaning that you owe nothing on it, the equity that you have is the value of the house. If you sell the house, you get the money, which is the equity.
Example: House is worth 250,000 You owe 0... You have 250000 in equity. You may not be able to pull out all 250000, but you could pull out a substantial amount, maybe 85,90% in cash depending on your credit....
If you owe 125000 on the same 250000 house, you would have 125000 in equity, or 50%....
Hope this helps... I am a loan officer, if you need a loan, let me know!
2007-01-18 15:57:07 · answer #1 · answered by Here2Help 3 · 1⤊ 0⤋
Equity is by definition the value of Asset - Liability. So, if a house (or anything that has any value) is paid for (owned without debt), that it's an equity.
2007-01-19 00:00:08 · answer #2 · answered by Slugg 3 · 1⤊ 0⤋
Equity is the part of the house that you own. For instance, if your house is worth $297k and you owe $150k on it you have roughly 50% equity in the property.
In your example, you have 100% equity in the home (unless of course, you have a tax lien against it or something)
2007-01-18 23:54:55 · answer #3 · answered by Goofy Foot 5 · 1⤊ 0⤋
Yes of course. Equity is the value left in your home after the loan is satisfied. for instance if your house is worth 100K an your mortgage is 75K, then you have 100-75= 25K equity in your home.
If there is no loan, the term equity is not used anymore. But you can use the whole value of your home = 100K
2007-01-18 23:56:53 · answer #4 · answered by Mx2 4 · 2⤊ 0⤋
You have total equity. Equity equals the amount paid up in your mortgage.
2007-01-18 23:57:43 · answer #5 · answered by da_hammerhead 6 · 1⤊ 0⤋
100% equity actually. equity is the amount of the homes whole value that you have to borrow against. if the house is paid off then you have 100% of the houses value available to borrow against.
2007-01-18 23:55:33 · answer #6 · answered by nyxcat1999 3 · 1⤊ 0⤋
If it is all paid off then your equity would be the amount that it is worth
2007-01-18 23:54:19 · answer #7 · answered by DB 3 · 2⤊ 0⤋
Yes, the equity is the value of house, minus what you owe.
If the house could sell for $100,000 and you owe $40,000, you have $60,000 in equity/.
If you owe nothing, you have $100,000.
Think of it this way. It you sold such a house, you would have $100,000 in your pocket (minus selling costs)
2007-01-18 23:58:26 · answer #8 · answered by Anonymous · 1⤊ 0⤋
Yes. Its entire value is your equity.
2007-01-18 23:54:38 · answer #9 · answered by Anonymous · 1⤊ 0⤋
It's all equity, baby. YEAH!
2007-01-19 00:13:05 · answer #10 · answered by nickscalero 2 · 1⤊ 0⤋