Home Equity

I'm looking to buy a house. and my brother told me that im looking to buy the house and equity at the end that I can collect the funds own homes. Im confused because I thought I built the equity to buy the house to pay my mortgage every month. Please tell me if it is right or not. It would be nice if it is. I could use the money for my company. Thank you for your time

Your good, your brother is wrong.
Hard to explain in terms of your question, but if you put say 10% over buying houses, your request 10% of the principal or equity. You then have 10% equity in the house.
I do not know where your brother figures you collect the capital at the end / purchase of the house.

You can find more explanations on http://equity-line-s.blogspot. ...

Good luck Report Abuse

haha, no.

Equity is the amount of value is beyond what you owe. If you get an agreement killer might be useful the more you pay, but cannot caash you that close, you have to get a loan (aka pay the back). Otherwise, the banks prefer that you at least 20% equity - if a buffer of 5% is not enough to get by without paying high rates.

What does your brother, is that the house you plan to buy less expensive, then the appraised value. This is an equity program that you buy, but the mortgage situation today, it is very difficult, almost impossible to get cash back on closing, because lenders do not allow such transactions. The only way to get money on the closing agrees to buy this house for a higher price and recover the difference by the seller after closing, because it will receive the check.

A house is worth what the assessment, it is said ..... It may be interesting to say $ 200K, but with the bad market, it can sell for .....$ 160K ...... who do you say $ 40K in equity ....

Equity is the result of reason at least to assess the house. Remember, you can enjoy .... high, but if there are no buyers ... no equity. Your brother is a dream.

A house is not that someone will pay for it. Unless you buy a family member and receive a gift of equity, the sale price or appraised value will be lower than the value used to calculate it. But anyway you can not get money at closing.

It's great that you have instant equity, but you can get cash back at closing. This is because the lender will use the lowest sales price or appraised value to determine your loan to value.

Sorry to disappoint you, but again, you can get cash back at closing.

CW

have equity means that it is better that you have paid and you can sell it immediately and make money (equity). unless you are talking about an auction or other unusual situation, the market sets the price of a house. So when you buy it at a market price, there is no equity in it or it would have sold for less. be careful. prices are still declining.

If the house appraise at purchase price and, yes, technically you should be able to borrow 90% of the capital - many lenders have repressed it because so many people to obtain loans at 100% , then cashing out of equity and flee, I would like to ask your lender

Unfortunately, no. Not least in the sense that I think you mean.

There are several ways to get cash to signing but it's more complicated and involves multiple buyers and some techniques for creating investors (which are legal if done properly)

But in the context of buying a house that someone thinks it's worth $ X and you will find at $ Y and you will get.