Question

If you buy a home that costs $100,000, it is currently worth $200,000, and you still owe $50,000 on it, how much equity do you have in the home?

Answer 1

The equity in the home is calculated by subtracting the amount owed on the mortgage from the home's market value. With a market value of $200,000 and $50,000 owed, the equity would be $150,000.

Step-by-step explanation:

To calculate the equity you have in your home, you subtract the amount you still owe on the home from its current market value. In your case, the current market value of the home is $200,000, and you still owe $50,000 on it. Therefore, the equity would be calculated as follows:

Equity = Market Value of the Home - Amount Owed on the Mortgage

Equity = $200,000 - $50,000

Equity = $150,000

So, you would have $150,000 of equity in the home.

Answer 2

The equity in a home valued at $200,000 with an outstanding mortgage of $50,000 is $150,000.

Step-by-step explanation:

To calculate the equity in a home, you subtract the amount still owed on the mortgage from the current market value of the home. In this scenario, the home's current value is $200,000, and there is an outstanding mortgage balance of $50,000. Therefore, the equity in the home would be:

Equity = Current Market Value - Mortgage Balance

Equity = $200,000 - $50,000

Equity = $150,000

So, the equity in the home would be $150,000.