4 ms·
If we assume that the home-owners have been building equity in their homes for the past 2 years, no, they would be at 0 + equity. This of course stings a little
by dvt 4y ago
If we assume that the home-owners have been building equity in their homes for the past 2 years, no, they would be at 0 + equity. This of course stings a little, but still not underwater or filing for bankruptcy.
- aidenn0 4y agoI meant to say much more than 20%; you don't build a whole lot of equity in the first years of a 30 year mortgage due to the amortization schedule.
- medvezhenok 4y agoIt depends a lot on the interest rates involved. At 2.6%, 45% of your first payment goes toward the principal, and around 3.5 years into a 30 year mortgage you hit 50/50 split between the principal and interest. At 5% interest, 22% of your first mortgage payment goes toward the principal and you only hit parity at around year 15-16. At 10% interest rate, only 5% of your first mortgage payment goes toward the principal. You hit parity (50/50) around year 23.