How long doe it take for you to gain equity in a home?

Answer 1

Way too many factors to answer the question like the location for starters. Right now home prices are still going down in many areas of the country.

Answer 2

You get equity when you pay a down payment or when you pay payments or the house appreciates. So it could be between when your offer is accepted and you move in during a hot market or when house prices are dropping you may not have any until you pay down the loan pretty far.
I wouldn't worry about the first 10% equity since it would cost you about that to sell and move and houses can appraise for less than you owe.

Answer 3

Depends on what you paid for the house vs its current market worth. Right now, market prices are stagnant to declining, and many folks have found themselves in a 'negative equity' position.

Answer 4

Technically, with every payment you gain a little equity.....very little.

Equity is the difference between what you could sell the house for and what you owe on it. It all depends on the housing market in your area. In most places, housing prices are stagnant at best.

Answer 5

Depends on if real estate is on an up cycle or a down cycle.

Currently the U.S. is on a down cycle.

I think it just bottomed based on the BusinessWeek article out this week.

It will then go sideways for a few years before going back up.

I'm guessing 5 years for any decent appreciation.

Hope this helps.

Terry S.

http://www.Welcome2Arizona.com

Answer 6

You should always own a home for 5 years before selling it. It's rule of thumb the Clark Howard worships.

Answer 7

unless you are paying a only interest loan after the first payment you have some equity!!!