What is the implication of equity when you hold a mortgaged house.?
Answers:
It's the amount the house is worth over the amoutn you owe on the house.
If you owe $20,000 and the house is worth $100,000 you own $80,000 in equity..
It is the value you own built up in the house that is NOT mortgaged (over and above the mortgaged amount). That belongs to you.
Equity refers to the amount of the property that you have actually salaried for, as opposed to the amount you are still paying off.
For instance, let's read out you buy a house for $100,000 and you give a down payment of $20,000. At the germ, you have $20,000 worth of equity (because that's what you have paid) and an $80,000 loan. As you money the mortgage each month, your equity increases.
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