Posted by Brent_IL on July 21, 2003 at 11:12:41:
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What is equity? - Posted by Rj
Posted by Rj on July 20, 2003 at 17:50:48:
I see equity and how u take out equity on houses and can use it for repairs, etc. now how does it work would someone please give me a general description of how equity works and as much that goes along w/ it as you care to talk about
Thakns,
Ron Jacobson
Tulsa, OK
Re: What is equity? - Posted by Brent_IL
Posted by Brent_IL on July 21, 2003 at 11:11:22:
It’s the value of the owner’s unencumbered interest in the property. Subtract the total unpaid mortgage balances and any other liens from the Fair Market Value (FMV). What’s left is owner’s equity.
Unless there are compensating factors, the top 10%, at least, is “air” because it is costly to borrow against it and if the house is sold, it’s eaten up by costs of sale.
Re: What is equity? - Posted by Tom-FL
Posted by Tom-FL on July 20, 2003 at 19:35:42:
This is as general as it’s going to get.
100,000 Value of your house
-80,000 Amount you owe on the house
=20,000 Your equity
You can borrow against this 20,000 to make repairs or take vacations or whatever.