Real Estate Investing Quizzes-If a property is worth $250,000,

Answer to Quiz

If a property is worth $250,000, and there is a $100,000 mortgage on the property, the home equity of the property is:

Answer: (c)
"Home equity" is the fair market value of a home minus the amount still owed on the home. In the example where the home is worth $200,000 with a $100,000 mortgage, your home equity is $150,000. Home equity is essentially a way of expressing your ownership interest in the home, and it can be used as collateral to secure home equity loans.

Next Quiz:

The federal consumer protection law that requires disclosure of estimated settlement costs in the sale of residential property involving a federally insured lender is:

(a) HUD
(b) RESPA
(c) FNMA
(d) GNMA

Word of the Day

Churning

The term "churning" refers to excessive securities trading by a stock broker who...

Churning

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