Como Funciona El Real Estate -

The bank agreed to lend him $247,500, but only after checking his credit, job history, and income. This loan is a . Leo would pay it back slowly over 30 years, plus interest (the bank’s fee for lending the money).

Leo’s down payment of $27,500 gave him control of a $275,000 asset. That’s —using a little of his own money and a lot of the bank’s money to own something big. como funciona el real estate

But Mrs. Gable wanted to move closer to her grandchildren. So she decided to sell. The bank agreed to lend him $247,500, but

An elderly woman named Mrs. Gable owned the house. She had bought it 20 years ago for . Over time, she paid off most of her mortgage. The difference between what the house was worth today ($250,000) and what she still owed the bank ($50,000) was her equity ($200,000). Equity is the owner’s true wealth in the property. Leo’s down payment of $27,500 gave him control

Carla also knew that in 5–10 years, Fairview’s growing population would likely make her duplex worth $450,000. That increase in value is . She could then sell it for a profit or borrow against the new equity to buy another property.

She lived in one unit and rented the other for $1,800 per month. After paying her mortgage, taxes, and insurance, she had $400 left over each month. That’s .