🎨 How much would you save by selling an inherited home?
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Inheriting a house can feel like a windfall until the tax and repair bills arrive. If your credit is low, a Home Equity Investment (HEI) might seem like the only way to keep the house. But HEIs take a huge cut of your equity. Let's see how much you'd save by selling instead.
💰 Sell Scenario
Selling means you pay closing costs, but you clear your debts immediately and keep the rest. Because of the 'step-up in basis', you likely owe no capital gains tax on an inherited home.
Net Sale Proceeds
Cash After Debts
Future Cash Value
See Also
🏡 Inherited Property & Debts
Start with the basics of your property and current mortgage. The current market value is crucial for both selling now and calculating future appreciation if you rent. Your mortgage details are used to determine how much equity you build each month versus how much you pay in interest.
Total Cash Needed
🏦 HEI (Keep the House) Scenario
An HEI gives you cash now in exchange for a share of your home's future value. They often take a disproportionate share of your equity, making them very expensive in the long run.
HEI Cash Received
Future Home Value
HEI Payoff Amount
Your Future Equity
📊 Results
Here is how your net worth compares at the end of the HEI term. Selling usually leaves you with significantly more wealth.
Keep (HEI): Future Wealth
Sell: Future Wealth
Net Advantage of Selling
Verdict
Sell
Calculator updated by heyfinfam (v26.7.0) · View history
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