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3
votes
2answers
136 views

How can I use the equity out of my current property to purchase another one?

I got out a $200,000 loan for a property that is valued at $270,000. I managed to get the property for $250,000 and I threw $50,000 at the deposit. Therefore, I currently owe $200,000. I purchased ...
4
votes
1answer
177 views

What are the costs of using home equity to invest in another property?

I'm wanting to find out some details of using the equity I have in my home to invest in another property. Specifically, about the costs of the loan(s) involved. I'm currently assuming I need a ...
8
votes
5answers
696 views

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 ...
12
votes
4answers
2k views

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 ...
3
votes
2answers
160 views

Formula for determining equity in a home (multiple parties)

I am buying a house with two other folks, my partner and her step mom. We are going to own it together, all of us on the mortgage. We are drafting a joint venture agreement with an attorney to make ...
2
votes
1answer
86 views

What would happen if I were to lose all equity in my condo when it's time to renew the mortgage?

I've been reading Condo Bible and it has the following passage: A solid down payment of at least 25 percent will act as a buffer for you at mortgage-renewal time should interest rates slowdown. If ...
0
votes
1answer
44 views

What is the difference between Protected-equity loan vs Equity loan?

I cannot understand what a protected-equity loan is and how it is different from an equity loan. Please keep your explanation layman and easy to understand. It's a research question for class, for ...
1
vote
1answer
655 views

Where can I find historical data on home equity loan rates?

I have found a graph of historical home equity loan rates on bankrate.com, but I am looking for the underlying data, so I can do a 3-year average. I found the equivalent for mortgage rates on Freddie ...
6
votes
4answers
380 views

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 ...
2
votes
1answer
116 views

Pay cash for a home, get a reverse mortgage, and buy stock

I recently starting looking into purchasing a home and talked to a realtor if he knew how much any of the homes in the area went for. He said that a home across the street was purchased for 700k in ...
4
votes
2answers
430 views

What the the advantages and disadvantages of a mortgage vs a home equity loan?

Suppose for the purposes of this question that you have (or can temporarily borrow) the entire cost of the house. Then you can a) get a mortgage on the house to pay off over a long time, or b) buy the ...
7
votes
2answers
465 views

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 ...
3
votes
4answers
205 views

Economics of buy-to-let (investment) flats

I'm trying to figure out whether it is a good business to buy a flat and rent it out. These are the numbers I have so far: Costs Property: 150,000 Downpayment (30%) : 45,000 Interest ...
13
votes
9answers
721 views

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 ...
8
votes
4answers
316 views

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 ...
6
votes
3answers
780 views

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 ...
12
votes
10answers
833 views

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 ...
9
votes
5answers
319 views

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 ...