what is equity,how do you obtain it?,?

Answer 1

Equity is the difference between how much your home is worth or valued at (usually determined by a licensed appraiser) and the amount of money that is owed against the property (1st mortgage, 2nd mortgage, liens, etc...)

You obtain equity by paying down your mortgage loan balance and through your home appreciating (growing) in value.

You can access your equity by refinancing your main mortgage or by obtaining a home equity line of credit or a second mortgage. See the links below that explain equity and accessing your equity.

Answer 2

Equity is the residual interest in the assets of the entity/company after deduction of it's liabilities. The residual interest is a claim or right to the net assets of the reporting entity.
In accounting theory equity can be calculated as:
Owner's Equity=Assets - Liabilities.

Answer 3

Equity is how much of the principal amount of your mortgage you have paid off. It does not include interest, taxes, or anything else.

Once you've build up equity in your home, some lenders will accept it as loan collateral. Of course, if you can't repay the loan, you lose your house.

Answer 4

Equity is the monetary difference between the pay off amount of your mortgage (the total amount owed on any given day) and the fair market value of the house on the same given day.

The mortgage amount is easy to figure out, since it is all computerized. The fair market value is normally determined by a licensed appraiser who compares sale values of similar properties in the same area.

Answer 5

If you purchase a home for (say), $200,000.00, and a year later, it's worth $300,000.00, then you have $100,000.00 worth of equity in your home. Basically the difference between what you pay for your home and what it appreciates to.