Home Line Of Equity
Good Morning Investors:
I refinanced and now have a home equity credit line of $21K.
Is this just a line of credit with my home as the collateral?
When I repay the loan can I close it and extract my equity from my property?
By the way, I purchased my HUD home and rehabbed it with a 203K and then refinanced. HUD asked $112K, I bid $116K and won the bid. The house has now appraised for $143K.
Approximately how much equity do I have in my home. I always thought that equity was the difference between the purchase price and the appraised price.
Help me out guys!
Good Morning John Locke, whereever you are.
I want to begin wholesaling after my boot camp this weekend at Profitable Property and pay off this equity thing.
Peace,
Tybotica <IMG SRC="images/forum/smilies/icon_biggrin.gif"> [ Edited by Tybotica on Date 03/18/2004 ]
A HELOC is basically a credit card. You have access to the money and you make monthly payments. I'm not sure I follow you when you asked "When I repay the loan can I close it and extract my equity from my property? " If you are saying when you repay the HELOC can you close it? Sure you can. Can you get the equity in cash, perhaps by refinancing your home again. As for you equity question, you didn't say how much it cost you to rehab the home so it would be hard to say what your equity is. Equity, as defined by Barron's RE Guide, is the interest or value that the owner has in real estate over & above the Liens against it. So if the market value is $100K and you have a mortgage of $60K, you have $40K in equity. Hope this helps.