Posted by Jim IL on January 17, 2000 at 14:28:26:
crey,
Equity is defined as the difference between what you owe on a property and what it is worth.
Example:
You owe $90k on the home loan, and the FMV is $100k.
You then have $10k in equity.
To figure this out is not an exact science.
You can determine accurately the amount owed, thats easy, its the loan payoff.
But, determining FMV is the not so exact part.
The best way to do that is by getting “comps”. That is what homes in the area that are like yours have sold for recently.
A home is worth what someone is willing to pay for it.
Some places you can do your own comps online, and others you have to use a RE agent.
In my area, Remax offers a FREE comp service.
check that out in your area, since they are national, they may offer it where you are.
Hope that helps,
Jim IL