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home equity?

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Home Equity

im looking to buy a home. and my brother told me that the home im looking to buy has equity and at closing i can cash out the homes equity. Im confused because i thought i built the equity in the home buy pay my mortage every month. please tell me if he is right or not . it would be nice if he is. i could use the money for my business . thank you for your time

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1 Answers

  1. 0 Votes Thumb up 0 Votes Thumb down 0 Votes

    Your correct, your brother is wrong.
    Hard to explain based on your question,but, if you put say 10% down towards the homes purchase, your applying 10% to the Principal or Equity. You then have 10% equity in the home.
    I don’t know where your brother figures that you cash out the equity at closing / purchasing the home.

    HeyDonny - Aug 25, 2012 | Reply


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