QUESTION IMAGE
Question
what does \equity\ refer to in a mortgage context?
the portion of the
property that a
homeowner owns
the mortgage
payment made by
the borrower each
month
the loan amount
owed to the lender
the tax benefit
from owning a
property
In a mortgage context, equity is the value of the homeowner's ownership in the property, calculated as the property's market value minus the outstanding loan balance. The first option defines this, while the others describe mortgage payment, loan amount, or tax benefit (not equity).
Snap & solve any problem in the app
Get step-by-step solutions on Sovi AI
Photo-based solutions with guided steps
Explore more problems and detailed explanations
A. the portion of the property that a homeowner owns