Is this a reasonable plan for paying?

MommaJ
Mon, 01 Aug 2011 11:41:48 +0000

If your parents refinanced, that means the new mortgage completely replaced the old one, which is no longer relevant Their equity is the current market value of the house (the Zillow website is one way to determine this very roughly; a real estate agent could give you a better number) minus the outstanding balance on all mortgages, including a home equity line, (a kind of second mortgage), if they have one. To put it simply, if they sold the house today and paid off the mortgage(s) with the money they received, how much would they have left? That’s home equity.