Is Your Mortgage Bigger Than The Value Of Your Home?

Is Your Mortgage Bigger Than The Value Of Your Home?

| Property debt advice - What to do if your mortgage bigger than your home?

You know what we mean maybe your mortgage is quite chunky and yet your house is too small for your family needs.

Maybe that’s because you bought your home when prices were at their highest, nearly 10 years ago.

So you paid a lot of money and, since then, you’ve now started a family and outgrown your pad.And now that you’re house isn’t worth what it was, you’ve got a bit of a dilemma: stay stuck, paying a big mortgage for a small place or move on and lose money along the way that means selling up and keeping on paying the balance of your mortgage.

But that doesn’t make any sense whatsoever. And it’s why we’ve come up with a third option.

We see a lot of people in this exact situation every day. And that’s exactly because of the property bubble and subsequent crash.

As a result, we’ve worked out a way for you to write off as much off your mortgage as possible.

How is home equity calculated?

Home equity is calculated by subtracting the amount you still owe on your mortgage from the current market value of your home.

Can you have negative equity?

Yes. With standard loans, your home equity will increase over time. With negative-amortizing loans — a loan with monthly payments less than the interest rates — your equity decreases over time as your owed balance increases.

Current Market Value of the Property
Mortgage Balance
Equity Calculator

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