But Mrs. Gable wanted to move closer to her grandchildren. So she decided to sell.
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. como funciona el real estate
In a sunny town called Fairview, there was a small, slightly worn-out house on Maple Street. It wasn’t fancy, but it had good bones, a solid roof, and a nice yard. But Mrs
She listed the house for . Why $275,000 and not $150,000? Because in Fairview, more people wanted to buy homes than there were homes for sale. A new tech company had opened nearby, bringing jobs and families. That’s demand . The limited number of houses was supply . High demand + low supply = higher prices. An elderly woman named Mrs
Enter Leo, a young graphic designer. Leo had saved $27,500 for a down payment (10% of $275,000). He couldn’t pay the rest in cash, so he went to a bank.
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).