Finance
A Michigan property owner's equity equals:
AThe purchase price plus improvements
BThe property's current market value minus any outstanding liens✓ Correct
CThe original down payment only
DThe assessed value minus the loan balance
Explanation
Equity = Current market value − Outstanding liens (mortgages, other encumbrances). As the property appreciates and the loan is paid down, equity increases.
Related Michigan Finance Questions
- Michigan's state real estate transfer tax rate is:
- Which type of mortgage loan is backed by the Federal Housing Administration?
- In Michigan, the 'secondary mortgage market' refers to:
- A Michigan adjustable-rate mortgage with an initial fixed period of 5 years followed by annual adjustments is called a:
- In Michigan, a reverse mortgage allows homeowners aged 62 and older to:
- A Michigan home inspector's report noting 'deferred maintenance' on a property most likely means:
- A Michigan seller who provides owner financing by carrying back a second mortgage takes on which primary risk?
- A Michigan VA loan benefit for eligible veterans includes:
Practice More Michigan Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Michigan Quiz →