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hazeleyes33
LIF Adult
Member since 5/05 13060 total posts
Name:
Ginger
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Stupid Question about Equity-??
How does it work? I know I must have some equity in my home now since we own it over 10 years. Do you take out a loan against it and have to pay it back?
Sorry I sound so stupid but I really don't know how you get it! Thanks.
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Posted 4/4/07 10:57 AM  |
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Prudential Douglas Elliman Real Estate
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: Stupid Question about Equity-??
yes- you def have equity b/c of how the market has gone up in the last 10 years
the equity is the difference between what you owe and what the house is worth
you can re-fi and get the equity out or take out a Home Equity Line of Credit or HELOC - which is normally an adjustable rate and more like a credit card
I would only recommed doing this to make improvements on your house
not to take you dream vacation like the ditech commerical says
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| Posted 4/4/07 11:03 AM |
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Kara
Now Zagat Rated!
Member since 3/07 13217 total posts
Name:
They call me "Tater Salad"
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Re: Stupid Question about Equity-??
WHY do you want to get the equity out?!
Equity is something you have, part of your net worth. It's $ you'd get above what you owe on your mortgage if you sold the home or money you could borrow against if you needed to. Like the above poster said, you should really only borrow against it (it's a home equity line of credit or a second mortgag) in very select circumstances.
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| Posted 4/4/07 11:12 AM |
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hazeleyes33
LIF Adult
Member since 5/05 13060 total posts
Name:
Ginger
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Re: Stupid Question about Equity-??
Posted by Beth1210
yes- you def have equity b/c of how the market has gone up in the last 10 years
the equity is the difference between what you owe and what the house is worth
you can re-fi and get the equity out or take out a Home Equity Line of Credit or HELOC - which is normally an adjustable rate and more like a credit card
I would only recommed doing this to make improvements on your house
not to take you dream vacation like the ditech commerical says
Cool-thanks. No I would NEVER take the money to just blow it and I would never take money against my home either. I am NOT putting my home on the line. Thanks!
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| Posted 4/4/07 11:37 AM |
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hazeleyes33
LIF Adult
Member since 5/05 13060 total posts
Name:
Ginger
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Re: Stupid Question about Equity-??
Posted by Kara
WHY do you want to get the equity out?!
Equity is something you have, part of your net worth. It's $ you'd get above what you owe on your mortgage if you sold the home or money you could borrow against if you needed to. Like the above poster said, you should really only borrow against it (it's a home equity line of credit or a second mortgag) in very select circumstances.
I don't want to at this moment. I just wondered how it worked. I know my sister has a home equity loan and was not sure if that was the same thing. She has updated her entire house.
Thanks!
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| Posted 4/4/07 11:38 AM |
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Kara
Now Zagat Rated!
Member since 3/07 13217 total posts
Name:
They call me "Tater Salad"
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Re: Stupid Question about Equity-??
Posted by hazeleyes33
Posted by Beth1210
yes- you def have equity b/c of how the market has gone up in the last 10 years
the equity is the difference between what you owe and what the house is worth
you can re-fi and get the equity out or take out a Home Equity Line of Credit or HELOC - which is normally an adjustable rate and more like a credit card
I would only recommed doing this to make improvements on your house
not to take you dream vacation like the ditech commerical says
Cool-thanks. No I would NEVER take the money to just blow it and I would never take money against my home either. I am NOT putting my home on the line. Thanks!
The only ways to get the equity are to borrow against your home or sell your house.
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| Posted 4/4/07 11:51 AM |
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hazeleyes33
LIF Adult
Member since 5/05 13060 total posts
Name:
Ginger
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Re: Stupid Question about Equity-??
Posted by Kara
Posted by hazeleyes33
Posted by Beth1210
yes- you def have equity b/c of how the market has gone up in the last 10 years
the equity is the difference between what you owe and what the house is worth
you can re-fi and get the equity out or take out a Home Equity Line of Credit or HELOC - which is normally an adjustable rate and more like a credit card
I would only recommed doing this to make improvements on your house
not to take you dream vacation like the ditech commerical says
Cool-thanks. No I would NEVER take the money to just blow it and I would never take money against my home either. I am NOT putting my home on the line. Thanks!
The only ways to get the equity are to borrow against your home or sell your house.
Is a home equity loan safe? Would you lose your home if you defaulted on it?
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| Posted 4/4/07 1:31 PM |
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Re: Stupid Question about Equity-??
Posted by hazeleyes33
Posted by Kara
Posted by hazeleyes33
Posted by Beth1210
yes- you def have equity b/c of how the market has gone up in the last 10 years
the equity is the difference between what you owe and what the house is worth
you can re-fi and get the equity out or take out a Home Equity Line of Credit or HELOC - which is normally an adjustable rate and more like a credit card
I would only recommed doing this to make improvements on your house
not to take you dream vacation like the ditech commerical says
Cool-thanks. No I would NEVER take the money to just blow it and I would never take money against my home either. I am NOT putting my home on the line. Thanks!
The only ways to get the equity are to borrow against your home or sell your house.
Is a home equity loan safe? Would you lose your home if you defaulted on it?
You consider a loan to be safe if you can default on it easily????????????????? With a home equity loan, your home is collateral and the lender has a security interest in it. The rate will be lower than it is for a personal loan.
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| Posted 4/4/07 10:51 PM |
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MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
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Re: Stupid Question about Equity-??
your house is used as collateral. if you default, bye bye house.
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| Posted 4/5/07 5:58 AM |
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hazeleyes33
LIF Adult
Member since 5/05 13060 total posts
Name:
Ginger
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Re: Stupid Question about Equity-??
Posted by ssdbk
Posted by hazeleyes33
Posted by Kara
Posted by hazeleyes33
Posted by Beth1210
yes- you def have equity b/c of how the market has gone up in the last 10 years
the equity is the difference between what you owe and what the house is worth
you can re-fi and get the equity out or take out a Home Equity Line of Credit or HELOC - which is normally an adjustable rate and more like a credit card
I would only recommed doing this to make improvements on your house
not to take you dream vacation like the ditech commerical says
Cool-thanks. No I would NEVER take the money to just blow it and I would never take money against my home either. I am NOT putting my home on the line. Thanks!
The only ways to get the equity are to borrow against your home or sell your house.
Is a home equity loan safe? Would you lose your home if you defaulted on it?
You consider a loan to be safe if you can default on it easily????????????????? With a home equity loan, your home is collateral and the lender has a security interest in it. The rate will be lower than it is for a personal loan.
I just would never want to get in a situation where if I could not pay the bill, I would lose my home. Knock on wood, I have never had this problem as I pay all my bills on time, but you never know.
I would consider a loan to be safer if your house was not on the line as that is my biggest asset.
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| Posted 4/5/07 10:22 AM |
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