What is home equity?

a. the closing costs associated with buying or renting a home

b. the difference between a home's market value and the homeowner's outstanding loan amount

c. the potential rental income that a homeowner can get from the house

d. the difference between the purchase price of the home and its current market price

Question

Social Studies

Kaydence Horton

2 May, 13:01

What is home equity?

a. the closing costs associated with buying or renting a home

b. the difference between a home's market value and the homeowner's outstanding loan amount

c. the potential rental income that a homeowner can get from the house

d. the difference between the purchase price of the home and its current market price

+5

Answers (1)

Know the Answer?

Martin Shelton · Answer 1

Home equity is the market value of a homeowner's unencumbered interest in their real property-that is, the difference of the home's fair market value and the outstanding balance of all liens on the property.