On 8 May 2005 08:48:29 -0700, someone wrote:

Were you unaware that you can obtain a home equity line of credit
without having any actual equity in the home? In my state you can get
this based solely on an appraisal.

Uhh - tautlogy here? No, you CAN'T get an "equity" line unless the
bank beleives that you have equity in your house. Which is
demonstrated to them by an appraisal. Which could be wrong.

"Equity" is just difference between what the value is, and what is
owed. It is NOT how much you paid off on your loan. So an appraisal
that is higher than the debt DOES indicate there is equity. Unless
you go and sell the house to find out what the value is, an appraisal
*IS* what is used to determine this.


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