QQuestionBusiness Management
QuestionBusiness Management
Building equity in a home is a good thing because:
A. Mortgage payments decrease as equity increases.
B. Credit scores increase as equity increases.
C. Equity in a home increases the homeowner’s assets.
D. Property taxes decrease as equity increases.
5 months agoReport content
Answer
Full Solution Locked
Sign in to view the complete step-by-step solution and unlock all study resources.
Step 1I'll solve this problem step by step, focusing on understanding home equity:
Step 2: Define Home Equity
Home equity is the portion of a property's value that the homeowner actually owns. It's calculated by subtracting the remaining mortgage balance from the home's current market value.
Final Answer
Equity in a home increases the homeowner's assets. Explanation: Home equity represents a valuable financial asset that grows through mortgage payments and property value appreciation, directly increasing the homeowner's net worth.
Need Help with Homework?
Stuck on a difficult problem? We've got you covered:
- Post your question or upload an image
- Get instant step-by-step solutions
- Learn from our AI and community of students