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  • Profile photo of freedom3freedom3
    Member
    @freedom3
    Join Date: 2003
    Post Count: 15
    May 23, 2005 - 1:05 pm

    Hi everyone

    I am trying to work out how much equity I have in my house so that I can pull out the equity to buy IP.
    My house is worth about $260.000
    owe $152.000

    How do I work out the equity.I was told difference between worth and owe eg.$108.00
    %80
    Equity $86.00
    Is this right?

    Regards Freedom

    Profile photo of Mobile MortgageMobile Mortgage
    Member
    @mobile-mortgage
    Join Date: 2003
    Post Count: 913
    May 23, 2005 - 2:37 pm

    Hi Freedom,
    At 80% LVR your available equity is $56.000

    E.g., Value: $260.000 @ 80% LVR = $208.000
    Minus the current loan balance of $152.000 = $56.000 in available equity,

    If you need to access more equity a higher LVR may be an option, but mortgage insurance will apply over 80% LVR.
    I hope this helps, Cheers.

    Regards
    Steven
    Mortgage Broker

    Mobile Mortgage Market
    Ph: 0402 483 216
    [email protected]
    http://www.mobilemortgagemarket.com.au

    PLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.

    Profile photo of Robbie BRobbie B
    Member
    @robbie-b
    Join Date: 2004
    Post Count: 2,493
    May 24, 2005 - 2:09 pm

    Hey freedom, you are working your 80% out on your ‘actual’ equity whereas Steve is showing you your ‘useable’ equity. Lenders work on ‘useable’ which is pegged to the property value itself, not the difference between property value and amount owing.

    The Mortgage Adviser

    http://www.themortgageadviser.com.au
    [email protected]

Viewing 3 posts - 1 through 3 (of 3 total)

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