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Clueless |
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I found a house listed for 199,900. The agent that has it listed says the S.E.V. is over 320,000. I was wondering if we bought the house, could we take the equity value it has and pay down the morgage with out owing anything on the extracted equity? Thanks so much! I'm totally inexperienced |
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I don't know what S. E. V. means, but if it's an estimate of value, it's way off, at least for today's market. If no one has bought the house for $199,900, then it isn't worth $199,900.
No lender will give you a mortgage loan for more than you pay for the property. In fact, these days most mortgage plans require a substantial cash down payment, so that you borrow less than the full purchase price. And the definition of equity is "what you'd have left if you sold the place today and paid off the loan." That house, clearly worth something less than $200,000, wouldn't have any equity you could borrow against.
I'd be suspicious of the agent who said it was worth $320,000. |
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Edith
Originally published on January 26, 2009 |
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