Frequently Asked Questions
Equity is the positive difference between fair market value and any outstanding liabilities (debts) associated with the property.” Assets – Liabilities = Equity. Liabilities. The formal definition of equity is: The difference between the current market 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.
This question is asked very frequently and involves a number of unique variables. The first thing to keep in mind is that the moment you are 30+ days behind on your mortgage payment, your bank has the right to report to all of the credit bureaus that you are 30 days behind on your payments. When a late payment is reported to the three major credit bureaus, it does have a direct affect on your credit.