Finance
What is 'equity' in a residential property in Idaho?
AThe assessed value minus improvements
BThe market value of the property minus all liens and encumbrances✓ Correct
CThe down payment amount only
DThe property's original purchase price
Explanation
Equity is the owner's net financial interest in a property — the current market value minus all outstanding mortgage balances and other liens. Equity increases as the mortgage is paid down or the property appreciates.
Related Idaho Finance Questions
- What is a 'hard money loan' and when might an Idaho investor use one?
- The Equal Credit Opportunity Act (ECOA) prohibits lenders from discriminating based on:
- In Idaho, a lien theory state, which legal instrument is commonly used to secure a real estate loan?
- In Idaho, a deficiency judgment after foreclosure means:
- A prepayment penalty clause in a mortgage:
- A hard money loan is BEST described as:
- The loan-to-value (LTV) ratio is calculated as:
- Under the Truth in Lending Act (TILA), what must be disclosed to Idaho mortgage borrowers?
Practice More Idaho Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Idaho Quiz →