Is there a calculator that I can use online to determine the future equity of my home, lets say in 2 or 3 years or can I count on it being roughly what it is now which is with the appraisal $12,000.
Does it depend on the appraisal of the home?
We have lived in this house and been making our payments since 2004. We have only paid off roughly $3000. and the pay off is approx $32000 however it appraised at $45000 we have done some work but not much a new roof , sheet rock etc. What Im wanting to do is take the equity out so that I can continue to upgrade the home and in about another 2 years I am going to want to refin can this be done?
2007-11-23 11:27:55 · 3 answers · asked by thecrew74 1 in Business & Finance ➔ Renting & Real Estate
There are two kinds of equity. The first one is "real" equity, which increases when you make payments and lover the balance of your mortgage. This is a very slow process because when you make your regular payments the larger part of a payment goes towards interest and a small portion goes towards principal (especially in the beginning.)
The second kind of equity is when the real estate prices go up and your home increases in value. In the long run (if you stay in this house for many years) you'll have a lot of equity, but in a short period of time you can actually lose all the equity.
Lets say you bought a house for $100,000 three years ago. You put $10,000 down and made payments and now owe approximately $87,000. The market went down and your home is worth only $85,000 in todays market. You lost all the equity and cannot take out anything.
You can find an online calculator, which will help you calculate what you owe after so many years of payments, but it doesn't mean anything because you do not know how much your property will be worth in several years. It depends on the market.
As for appraisal, yes, when you want to take some money out, your home will have to be appraised. The appraisal at THAT time will determine how much equity you have (if any.)
If your home was appraised at $45,000 in 2004, if doesn't mean it's worth this amount now. It maybe more, but it maybe much less. I'd guess it's worth less now because prices went down since 2004.
2007-11-23 11:52:21 · answer #1 · answered by REALTOR 3 · 0⤊ 0⤋
It depends on where the housing market goes, write now most people are loosing equity due to housing going down in price instead of up.
2007-11-23 19:50:16 · answer #2 · answered by mburleigh8 5 · 0⤊ 0⤋
Its not possible because no calculator can predict what the market will do.
2007-11-23 19:50:56 · answer #3 · answered by frankie b 5 · 1⤊ 0⤋