I guess, we belong to Category 2. Bought our first house for 189K in 1998, sold it in 2002. Rolled everything that we made to our current house, which we bought that same year before the prices went really crazy. At the peak of the market, we probably have an equity of more than 600K. According to Zillow, the value of our house went down more than 150K from the peak. But we’ll be OK, our income to debt ratio is about 22% and we don’t have any debt but our mortgage.
