How much equity do I have?

[Stanley Kong]

Hello BP, 

I'm wondering how much equity I actually have at my home right now. 

I bought for 202k originally with 5% down. Original mortgage was for 198k and after two years it is now 189k. 

Recently my neighbour underneath me in the same apartment complex sold their unit for 290k. All the units are the same size.

Therefore can I use that selling price a FMV comp and use that as my equity basis? Or do I need an appraisal to determine that first?

My real question is did 90k just magically appear from nowhere for me effectively making me have over 20% equity therefore I can unsubscribe from the CHMC default insurance. And also making me eligible for a HELOC.

[Charles Lemelle]

Hi Stanley,

From what i see you have about 100k in equity. Congrats on that. 

You will have to have an appraisal done for the lender to base their decisions off of. But at least you can use the neighbors sale for what is potential in your mind. 

You should have 33% equity, or 100k. 

HELOC's are all different. Meaning some banks will do 80% LTV, 85% LTV, etc. If the lender will do 85% LTV then you can borrow in our example $56,500

Home value 290,000

Times 85% equals 246,500

Minus 190,000 that you still owe

Leaves 56,500 Line of Credit you can have.