Posted on: 30th Mar, 2004 03:31 am
Equity is an owner's financial position in a property. Equity is the difference between the fair market value of a property and the unpaid principal balance of the mortgage and any liens. It is also known as an ownership interest- the value an owner has in real estate over and above the obligation against the property.
For example, let the fair market value of a property be $500,000 and let the unpaid principal balance of the mortgage be $200,000. Therefore,
Home Equity = Fair market value - Unpaid principal balance of the mortgage
Home Equity = $500,000 - $200,000
Home Equity = $300,000
Related Articles
For example, let the fair market value of a property be $500,000 and let the unpaid principal balance of the mortgage be $200,000. Therefore,
Home Equity = Fair market value - Unpaid principal balance of the mortgage
Home Equity = $500,000 - $200,000
Home Equity = $300,000
Related Articles
Is there such a loan where you can take out loan and have the loan paid back to the bank when the house is sold? I bought my house in Brentwood Contra Costa area 10 years ago for the price of $229,000 and I would say my house could sell easy for $500,000 or more. We would like to make some improvements, but don't want to add more to our monthly mortgage payment now. We owe about $198,000 still on the house
Hi Tina,
Its seems that you have already asked a similar question earlier. I've replied you there. To view my reply, you may refer to http://www.mortgagefit.com/know-how/payloan-homesale.html
Its seems that you have already asked a similar question earlier. I've replied you there. To view my reply, you may refer to http://www.mortgagefit.com/know-how/payloan-homesale.html