Personal Finance & Money Stack Exchange
Personal Finance & Money Stack Exchange

Questions tagged [home-equity]

A home equity loan is a type of loan in which the borrower uses the equity of his or her home as collateral.

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Why will the bank only loan us 80% of the value of our fully paid for home?

We own Land and a home, wanting to downsize and just buy a home and lot. We do not owe anything on our land and home, but have asked about a loan using our land and home as collateral, but, even though our land and home are paid, the bank says they…
Kathy Rust
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Why do some people say a house "not an investment"?

I have heard a few people say that "a house is not an investment" as an argument to stay in an apartment. (To me, this seems like a stupid reason, but that is not my question.) Of course, this is not the only place I have seen this argument. I've…
John Gietzen
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How to split home equity fairly where contributions differed?

My partner and I purchased a house together in DC. We each put the same amount down, but because of our salary differences, I pay 2/3 of the mortgage, and he pays 1/3. We have made a great deal of money on the house and intend to sell it in the near…
RDS
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Why can't house prices be out of tune with salaries

I have been arguing for years with my colleagues that having house prices go up 10% pr year and salaries only 3-4% means that we have less money, not more. They in turn say that its not a problem since the equity in their house will make up for it.…
Lars Tackmann
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How do you value your home when calculating your net worth?

I'm interested in tracking my net worth as a way of measuring progress and I'd like to include home equity in my net worth. How are you tracking home equity? Are you using purchase price? Average home price? How often do you update your home's…
Alex B
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Why are interest rates for home equity loans higher than for a mortgage?

The interest rates I see advertised for home equity loans are typically a little higher than the rates for mortgages used for a home purchase. Why is this? Is the reason because a home equity loan is basically a second mortgage, so it is riskier…
painter48179
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Pros and Cons of Interest Only Loans

I currently have a home with an FHA loan which require me to make mortgage insurance payments for the next 4 years. I am considering a refinance and have came across the idea of interest only mortgages. What are the advantages and disadvantages of…
Antarr Byrd
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Our home equity has increased. Can we get rid of PMI without an appraisal?

We have Private Mortgage Insurance on our house because we didn't put 20% down when we bought it. We've recently paid some extra money on the mortgage, and we now have > 22% equity. We've contacted the bank to try and remove the PMI, but they want…
davesw
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Does home equity grow with the investment put into the house?

A home equity loan is a type of loan in which the borrower uses the equity of his or her home as collateral. The loan amount is determined by the value of the property, and the value of the property is determined by an appraiser from the…
Grasper
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What equity would I have when selling early on in mortgage?

I'm trying to wrap my head around the idea of mortgages, and I hope someone can help me. Say I buy a house for $100,000. I put down $20,000, and get an $80,000 mortgage. I've heard that for the first few years, I'll only be paying down the interest…
GoldenBunny
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What is the true value, i.e. advantages or benefits, of building up equity in your home?

I am a relatively new home owner, having purchased my first home in October 2009. It was a $315,000 home, purchased with a 5% no-cost loan with I believe 12% down payment. I think the total financed amount was $283,000. I understand that the dollar…
jrista
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Buying a new home and having 'equity' in it

I viewed a model home that was originally priced at about $207,000. The builder is offering it for $173,000 since it was a model. He says that for this reason the home will already have over $30,000 in equity when I purchase it. Is this true, and if…
Antarr Byrd
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Upside-down mortgage - pay it down or invest elsewhere?

7.5% fixed rate 30 year mortgage, ~100k more than the house appraises for. 7 years into the loan. Variable 'extra' income between 20k and 30k net per year (new job!). No other debt and our only investment is a small 401k. Not knowing what will…
user11043
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Products for withdrawing from a home's equity?

I am a current homeowner with a property that has no mortgage (everything has been paid off). A family member is in need of some cash to consolidate some credit card debt and I would like to help them out. However, the amount of money that they need…
robjob27
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Can a jobless person get a home equity loan if he has other sources of income such as stock dividends?

Suppose a jobless person has a fully paid property. He wants to take out a home equity loan. Will the bank reject his loan application due to his lack of salary income as a jobless person? This person has other sources of income such as stock…
curious
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