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:if an owner paid a quarter of the value of a home originally (the [[downpayment]]), and over time, the owner has paid a mix of [[interest]] plus another quarter of the [[principle]], the owner now has equity of half the value of the house.
 
:if an owner paid a quarter of the value of a home originally (the [[downpayment]]), and over time, the owner has paid a mix of [[interest]] plus another quarter of the [[principle]], the owner now has equity of half the value of the house.
   
Now, some of the ways this example is oversimplified is that it didn't explain that the interest is usually paid first and the value of the house changes over time. To calculate the current equity, you need to know the current [[fair value]] of the asset or home and how much is still owed. Subtract the amount owed from the value to get the current equity.
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Now, some of the ways this example is oversimplified is that it didn't explain that the interest is usually paid first and the value of the house changes over time.
   
 
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* [[buying]]
 
* [[buying]]
 
* [[co-signer]]
 
* [[co-signer]]
* [[land lease]]
 
   
 
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===Related articles on other wikia===
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