I am a new user and am trying to understand my reports. How is equity in the primary house calculated? I've entered my home's current value, mortgage, etc. However, my equity in the house is much greater than the value of my house. Any ideas how that is possible?
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RSS
Have you entered a number greater than zero for the real appreciation? If so, you'll see the value of the house go up in today's dollars. That number is entered in the Primary Home input area.
Dan, thanks. No, real appreciation is set at zero.
Pete
So you are looking at the Housing report in the details area of the reports. And you are seeing the Equity value of the house go up beyond the amount that you entered as the "Current market value" of the home as entered? Does it keep rising every year? Or does it rise to some level and then hold steady?
I may have to look at your database in a support ticket.
Dan
Yes, I am. The equity value starts at more than 2x current value, rises slightly until mortgage is paid off, then levels out.
OK, 2x *market* value (not purchase price) that you've entered. Doesn't make sense. If you create a support ticket and attach the database, I can take a closer look or get a technician to look if it doesn't make sense to me.
The equity should rise to the point of the amount you put in as market value until the point when the house is paid off and then stay even until the end.