Finance
In Delaware, what does 'equity' in real estate mean?
AThe mortgage interest deduction available to homeowners
BThe difference between the property's market value and the outstanding debt against it✓ Correct
CThe homeowner's credit score times the property value
DThe amount of the initial down payment only
Explanation
Equity is the owner's financial interest in the property — the difference between the property's current market value and the total amount of all liens (mortgages, etc.) against the property.
Related Delaware Finance Questions
- What is the 'Truth in Lending Act' (TILA) and how does it protect Delaware borrowers?
- Which type of mortgage loan is insured by the Federal Housing Administration?
- Which type of mortgage requires the borrower to pay only interest for a specified period, after which principal payments begin?
- Which loan type is designed for rural homebuyers and is backed by the USDA?
- A Delaware homebuyer obtains a $250,000 mortgage at 6% annual interest. What is the first month's interest payment?
- Loan-to-value (LTV) ratio is calculated as:
- A short sale in real estate occurs when:
- What is the primary purpose of RESPA?
Practice More Delaware Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Delaware Quiz →