EQUITY CONFUSION!!
OK i know that equity is the total value of the property minus the money owed on the property.
My question is: is equity actual cash you can go down to the bank on any given day and get, or is it a loan, or what???
Equity is something that exists (if the loans on the property are less than the property's value) but would have to be extracted via a loan if you want to get access to it. You don't just walk into a bank and say, I would like $1,000 in 100 dollar bills from my equity account please.
Hi RealEstate_Tycoon03,
You can go to the bank and get set up with a Home Equity Line of Credit. This is like a check-book that you can use that will draw against the equity in your house. You generally pay interest only on the amount that you use.
Hope this helps!
BAMZ