What Is Equity? Oh, Its Not Important.
I love the guys at TBWSdailyshow.com. Frank and Brian are middle-aged, a little doughy in the mid-section, and always chock full of good solid, and highly entertaining info. They’re the kind of guys you’d love to have a beer (or 7) with….kinda like me.
WHAT IS EQUITY?
Equity in terms of real estate is defined as: the difference between the value of the property and the amount the owner still owes on the mortgage. It is the amount that the owner would receive after selling a property and paying off the mortgage. Source Link
So what, Craig. I’ll tell ya, “So what!”
In the video below, Frank and Brian talk about how the average owner in America is leveraged to about 94.5% of the value of their homes. We are leveraged! Stated another way…the average homeowner is Ska-Roooooed, if the market takes another downturn in prices. Do you think this could translate to more foreclosures? Can I get a “Cha-Ching,” from the congregation?
They also talk about how appraisers are killing all of us! You feel me on that don’t cha’
THESE GUYS ARE SO SPOT-ON!