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The net value of your home is Equity-Debt, so at first the net value of the mortgage will about what your down payment was
by frockington1 7y ago
The net value of your home is Equity-Debt, so at first the net value of the mortgage will about what your down payment was
- neogodless 7y agoEquity is the net value of the home minus the mortgage. So do not subtract the debt (aka mortgage) from equity to determine value. Either use the purchase price or appraisal as an estimate for what you'll be able to sell the house for. (It's often wise to decrease this number, as you can lose roughly 10% of the value in further transaction costs when you sell.)