FinanceQuestion 85 of 120
'Equity' in a property is best defined as:
a.The total amount originally borrowed
b.The annual property tax bill
c.The market value of the property minus the debts secured against it
d.The broker's commission
Explanation
Equity is the owner's financial interest in a property, calculated as market value minus any outstanding liens or mortgage balances. Equity grows as the loan is paid down and as the property appreciates. It represents the portion of value the owner truly owns.
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