Federal Housing Value Calculator uses 2006 index

Paying for College
1

<p>The link that I used to the Federal Housing Value calculator is using a 2006 index and says add 10%...
which is insane--because even at the 2006 value--there is no way I could get kind of $ for my house..let alone more!</p>

<p>Does the FAFSA use that calculation?</p>

2

<p>FAFSA doesn’t ask you to estimate home value or report home equity.</p>

3

<p>The value of a family’s primary residence has not been considered by the federal need analysis methodology since the 1993-94 academic year. Nevertheless, many private colleges and universities do take home equity (the market value of the home minus the unpaid mortgage) into account. Moreover, if the family owns a second home, the net value of that home is considered by both the federal and institutional formulas. </p>

<p>Note that the need analysis formulas use the market value, not the insurance or tax value, when determining your home equity. </p>

<p><a href=“http://wwwDOTfinaidDOTorg/calculators/federalhousingDOTphtml[/url]”>http://wwwDOTfinaidDOTorg/calculators/federalhousingDOTphtml&lt;/a&gt;&lt;/p&gt;

4

<p>For CSS Profile, that federal calculator might be used to check on what you report, according to “Paying for College Without Going Broke.” It was very conservative vis a vis market value when I used it in 2007, but not now! Still, the book says to be sure you take into account the prospect of selling your house at fire sale prices - as if you needed the money right away. That means you use a house price that would get the house sold immediately, plus around 10% costs of sale. That’s what I’m going to do anyway.</p>

5

<p>I posted a separate thread recently about the same thing…still trying to figure out IF the schools or the CSSPROFILE process uses a housing multiplier to check the housing market value you report or not? The PROFILE specifically asks for original cost and when you bought home – I have to believe they use that info for something, right? Anyone know?</p>

<p>Thanks</p>

6

<p>According to the book I mentioned just above, yes. (When I said “might” I meant that an individual might have the calculator applied by CSS - for instance if the value posted seems unusually low, they might double check by using the multiplier based on purchase price/date).</p>