Yes and probably not.
Could you make the home smaller if you thought the heating bills were too high?
As long as I'm paying the mortgage I can do anything I want to the house provided I get the permits. But how many people would spend money to reduce the value of their home just to cut energy costs? That's a ridiculous scenario.
Have a major sickness in the family that causes the loss of the house due to forclosure. See what amount of that equity you get.
What percent of all homes in this country are foreclosed on every year for this reason? It still doesn't counter the fact that the average household owns 57% equity in their home and home ownership is at an all time high.
Are there tax advantages to living in a home as opposed to renting? Does the lender or the homeowner realize those benefits?
It may be but the fact that you have to get permission to do so means you don't "own" a home that's under a mortgaga.
It still doesn't counter the fact that the average household owns 57% equity in their home and home ownership is at an all time high.
You don't "own" the home outright if there is a mortgage. It doesn't matter who the profits a sale go to. You can't sell the house or do anything you want to it without the banks permission. I can do anything I want to my cars but not to my home. I must get approval either from the town or the bank. How can that be if I own it?
Equity is a meaningless number. It's a value that can't be realized without giving up the home. Even equity loans further consolidate the bank's ownwership of the property.
If the house burns to the ground or is destroyed by a tornado who gets the money? The bank does.