Home Buying in Dixon>Question Details

Satindoll91, Home Buyer in Dixon, IL

We put 20,000 down payment on our house, 3 years later, is that considered part of our equity in the house?

Asked by Satindoll91, Dixon, IL Mon Jan 17, 2011

When we receive our statement it only shows the payments we have made on interest and principal each month.It does not show our 20,000 down payment. Did that 20,000 go towards the interest or the equity? Thanks.

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3
Satin
Your downpayment pays down your loan amount at time of purchase. After that, the down payment is irrelevant to what you owe, and how much equity remains. Depending on the price of the house you still might have some of that $20k if you bought a $50k house. If however you bought a $400k house, very likely that 20k vanished with the declining market and now you have we we refer to as negative equity-you owe more than the house is worth..
0 votes Thank Flag Link Tue Feb 8, 2011
Satindoll,
Your mortgage statement is not a reflection of your purchase price. It's only a statement about your loan. If you bought a home for $100,000 and put $20,000 down, you borrowed $80,000. You started out with $20,000 in equity.
After two years you probably still owe around $78,000. If the home is still worth $100,000 you have $22,000 in equity. If the value has changed, and for most of us it has, your equity is based on the current value less what you owe.
0 votes Thank Flag Link Mon Jan 17, 2011
Satindo;
Yes, it's part of the equity in the house.
Your mortgage amount should be the sale price of the property less your down payment amount.
Web Reference: http://www.321property.com
0 votes Thank Flag Link Mon Jan 17, 2011
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