euphoric_anomaly asked:
I purchased my home last august for $20k cash. No loans, no mortgage etc. I was wondering, if I ever needed to borrow some money using my home as collateral, how would I know how much I have? I’ve heard some people say that because I bought my house using cash that now I have $20k in equity right off the bat. I’ve also heard that’s not true…. anybody know the correct answer ?
Micheal
I purchased my home last august for $20k cash. No loans, no mortgage etc. I was wondering, if I ever needed to borrow some money using my home as collateral, how would I know how much I have? I’ve heard some people say that because I bought my house using cash that now I have $20k in equity right off the bat. I’ve also heard that’s not true…. anybody know the correct answer ?
Micheal
Jesus
Mobile homes decrease in value like a car. You do have equity since it is paid for, however it is less than the $20K you paid.
Comment by magnolia — August 25, 2010 @ 3:03 pm
Vernon
Equity is defined as the difference in what you owe vs what the property is worth….so the full appaised value, since you own it outright, is the amount of equity that lenders will use when giving you a HELOC.
Mobile homes go down in value, but the LAND (that holds most of the value) in most cases goes up….and sometimes it’s enough to offset the depreciation in the mobile home.
Comment by Expert Realtor — August 26, 2010 @ 6:09 am