Finance

An Iowa borrower with a $180,000 mortgage balance wants to calculate their equity in a home appraised at $245,000. What is the equity?

A$55,000
B$60,000
C$65,000✓ Correct
D$70,000

Explanation

Equity = Appraised value − Mortgage balance = $245,000 − $180,000 = $65,000. Using the values given ($180,000, $245,000), apply the appropriate formula.. The correct answer is $65,000.. This is a common calculation on the Iowa real estate exam.

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