You may encounter an instance where there is an unexpected Equity Takeout amount in the Purpose section under the Transaction category. This may be caused by the values not adding up to the intended mortgage amount or it may indicate that additional steps are required to complete the application. The example below demonstrates an Equity Takeout amount displayed in a purchase scenario.
In this example, the Equity Takeout amount is the result of the values used on the application not meeting the following: Purchase Price = Downpayment + Loan Amount. This can be easily corrected by amending the purchase price or mortgage amount to the intended value. Using the example provided, if the mortgage amount is amended to $320,000, this would eliminate the Equity Takeout amount as shown below:
If you are experiencing this on a refinance or equity takeout request application, please see the following articles to ensure all necessary steps are completed for the application: Refinance (Primary Residence), Refinance (Not the Primary Residence), or ETO (Equity Takeout).