Estimated Home Value

For the purpose of calculating the annual payment required and calculating the value at which underpaid income converts to additional equity rights, we need an updated estimated home value at every year between the date of the initial appraisal and the date of the eventual property sale. Getting an annual appraisal would be too expensive, so instead we make the assumption that the property's value changes in direct proportion to a regional home price index, such as the

FHFA's Quarterly All Transaction Index⁠

Input:

Initial Appraised Value

0000000

600000

⁠

Home Price Index at Investment Date

⁠

000

200

⁠

Home price Index at year n:

⁠

000

426

⁠

Output:

Interim Home Value in year n:

600000

⁠

* (

426

⁠

200

⁠

)

600000

⁠

2.13

⁠

1278000

⁠

Want to print your doc?
This is not the way.

Try clicking the ⋯ next to your doc name or using a keyboard shortcut (

CtrlP

) instead.