Finance
What is 'equity' in a Hawaii real estate context?
AA. The concept of fairness in real estate transactions
BB. The difference between the property's market value and the total outstanding mortgage balances✓ Correct
CC. The lender's interest in the property
DD. The down payment required by the lender
Explanation
Equity is the owner's financial interest in the property: the market value minus all outstanding liens and mortgages. As the loan is paid down and value increases, equity grows.
People Also Study
Related Hawaii Questions
- A Hawaii homeowner's loan balance is $380,000. Their monthly payment is $2,400, of which $1,900 is interest. How much principal is paid that month?Real Estate Math
- A Hawaii property sold for $640,000 and the buyer paid 3.5 points to buy down the rate. The loan was $512,000. What were the total points paid?Real Estate Math
- A Hawaii home is purchased for $640,000 with a 25% down payment. The 30-year loan has an annual interest rate of 5.5%. Using a factor of $5.68 per $1,000, what is the monthly P&I payment?Real Estate Math
- A Hawaii buyer obtains a $350,000 30-year mortgage at 6% interest. The monthly factor is $6.00 per $1,000. What is the total interest paid over the life of the loan?Real Estate Math
- In Hawaii, what does the term 'loan-to-value ratio' (LTV) represent?Finance
- In Hawaii, a VA loan is available to which purchasers?Finance
- Which of the following best describes a balloon mortgage?Finance
- Under Hawaii's Condominium Property Act, each unit owner receives:Property Ownership
Key Terms to Know
Discount Points
Prepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
Private Mortgage Insurance (PMI)Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
AmortizationThe gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
Math Concepts
Study This Topic
Practice More Hawaii Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Hawaii Quiz →