>> On 8/29/2011 3:14 PM, Jordan Hayes wrote:
>>
>> This is actually a very good example of ...
Actually, SA wrote that.
> recently, I learned that the appraisal for the house was
> more than the purchase offer. The mortgage broker wrote to
> say, "Woohoo! Now you have instant equity!"
> [...]
> what amazed me was how, in the midst of clear and obvious
> evidence that a house is only worth what a buyer is going to
> pay for it, i was still told I had "instant equity"!
I guess. In the same way that a house is only "worth what a buyer will pay" equity is only "worth what a lender will lend" ...
What do you think "equity" should mean?
Should it include, for instance, the ordinary 8% haircut you'd take if you sold it?
/jordan