Did you mean to say that you have a primary home *worth $140,000 but with a mortgage of $75,000”.
If that is true and what you meant, your equity in that home is $65,000.
Was your family initial mortgage $140,000? The actual value of that home could be higher.
What about the rental property?
Yep, that is what I meant. No my family’s initial mortgage was smaller. In the $80-90 range I believe. The market price is $140000. The rental property market value is $40-50k. We get a monthly rent of $200.
So are you saying that your parents have paid $65,000 of maybe a $90,000 mortgage?
I am sorry I dont understand
What I know is that our original house value was about $110K when we bought it in 2018. In 2024, my parents have told me that the market price is about $140K. We have a home loan (I believe this is the mortgage) of $75K remaining (65 lakh inr)
Thank you. That is clear.
sorry if it wasn’t clear before. I am not entirely comfortable with the proper terminology regarding housing.
So the equity they have in that house is about $65,000.
Is there a loan on the rental property?
No,there is not debt there
So you have total $50,000 or so in equity in your rental, and $65,000 in equity in the primary home. Right there you have $6400 available per the colleges towards your family contribution.
I agree with the above poster who said that likely is not all that is accounting for the difference…but it’s something.
but the same thing is there in the npc right? Why is it not reflected there? I entered the same values there as well
I do not know the other details of your CSS Profile, but those are the schools that look like they are coming in with a higher net cost than your NPC.
Are you positive you entered the parent info on the Profile ONLY in the parent section, and the student info ONLY in the student section?
NU’s NPC asks specifically about the primary home’s purchase price, current market value, and debt. It separately asks the same for any additional real estate. So, if OP included the correct values when they ran the NPC, these real estate holdings would not explain any of the difference between the NPC result and the actual FA offer (assuming NU’s NPC is accurate.) It could also be possible that NU made different current market value estimates for one or both of the real estate holdings though…OP will find this out when they have their call with the FA staffer. I hope that OP’s parents can be on that call.
Or expects the family to sell the second piece of real estate.
Maybe. But seems like the cash resulting from a sale of $60K would only be assessed at 5%, increasing the NPC by $3K. If NU expects the entire $60K be applied to the first year of college (and I would be surprised if that’s the case), the actual FA offer would be lower (COA higher.)
I don’t know the exact difference…but $3000 from a sale plus $6400 in equity from the primary residence would be $9400.
An issue is that in many countries you can’t borrow against your house’s value until you own it outright. So the discrepancy might in part come from what the College thinks they can access and what they can access in reality.
That’s still only about 1/4th of the difference (at most) in any case. Based on what you explained above, not even that.
It still would t explain the 22k->46k NPC to COA difference.
In that case it’d be good for OP to have an official document showing what each property is worth (in English and in Dollars).
I will check with my parents to see if we can obtain something like that
I was just talking about the additional real estate, not the primary home (and again, if OP put both holdings in the NPC, the NPC results would have assessed 5% on the equity of each.) I would be surprised if NU wants the family to sell the primary home, and I would expect NU knows the family can’t borrow against their home in India like myos said. But, let’s see what NU says in the meeting.