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What does equity mean?

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2010-01-08 18:11:39
2010-01-08 18:11:39

In regards to home ownership and property, equity can be seen as:

Home appraisal value (minus) loan amount (equals) Equity amount

It is possible to have negative equity, which can happen when a homeowner buys in a rising market, and there is a price correction, reducing the value of the home appraisal. If there is no loan against the home, the equity is equal to the appraised value.

Equity can also be viewed as Share.

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Yes you do. *Clarification: if you own the home you are owner of any equity that may be realized by the sale or leveraging of the property. That does not mean the home has equity. It only has equity if it is worth more than loans or liens held against it.

Finance equity refers to the residual claimant or interest of the major type of investors in assets after paying off all the liabilities. Negative equity exists if liability is more than assets.

If you mean that there was a mortgage recorded prior to the home equity mortgage and the first mortgage is foreclosed then the equity mortgage would be wiped out by the foreclosure. If you default on a home equity mortgage then the bank will foreclose and take possession of your home.

A Home Equity Line Of Credit (HELOC) is generally granted by a bank or credit union. Equity is the amount of your home that you actually own. For example, if your home is worth $100,000 and you have paid $20,000 in principal, your equity is $20,000. A loan can be made using this equity as collateral. A line of credit for this amount basically means you will be given a checkbook that draws upon the loan.

EQUITY:- Equity is the term in which liability is introducedOwner Equity :- Owner Equity is the term in which liabilty and owner capital is introduce...it is some time called Equities....

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It can happen A: I don't think it can happen. let us see... equity = represents your ownership 80% equity = says that you own 80% of the business zero equity = you have no ownership negative equity = ??? Negative equity would just mean that you have no property plus you owe someone else which means its just another liability. So I think its not possible

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To apply for an equity loan you have to contact a mortgage or home equity lender and see what kind of equity your home has. If your property value has declined it is possible that you could have negative equity.

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