That’s a great question! So when you buy a house, you instantly get equity. You get more equity the longer you live somewhere, most of the time as long as their isn’t a housing market collapse.
So equity is calculated like this: the After Repair Value of the home minus how much you owe on it. So let’s say you could sell your home for $150,000 and you owe $100,000 on the mortgage, then you have $50,000 in equity because the house is worth more than you owe. Equity can be very hard to attain because it takes either a huge lump sum to make it happen or for you to live in a house for over 15 years making your monthly mortgage payments. It’s just not something that comes quickly. https://sellmychattanoogatnhousefast.wordpress.com