Finance
A NH homeowner's equity increases when:
AThe property tax rate increases
BThe property value increases or the mortgage balance decreases through amortization or extra payments✓ Correct
CThe homeowner takes out a HELOC
DMortgage interest rates rise
Explanation
Equity = Market Value − Outstanding Debt. Equity grows as property value increases (appreciation) and/or as the mortgage balance decreases through amortization payments or additional principal pay-downs.
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