Okay, but I think you're now double dipping. Let's take the earlier example, $150K mortgage on a $200K home. Let's assume the mortgage is interest-only to keep things simple, and forget about sale-related costs for the same reason. The value of the house goes up to $250K and I sell it. I get $100K, the bank $150K. There is no 'equity' involved here, it's just a loan.
Okay, but I think you're now double dipping. Let's take the earlier example, $150K mortgage on a $200K home. Let's assume the mortgage is interest-only to keep things simple, and forget about sale-related costs for the same reason. The value of the house goes up to $250K and I sell it. I get $100K, the bank $150K. There is no 'equity' involved here, it's just a loan.
Oh, yeah, you're right there. I misspoke.
Thank you for the correction, comrade.