Finance

A Pennsylvania homeowner's property is appraised at $350,000 and they have a $200,000 mortgage balance. How much equity do they have?

A$150,000✓ Correct
B$200,000
C$350,000
D$550,000

Explanation

Equity = Property Value − Mortgage Balance = $350,000 − $200,000 = $150,000. Equity represents the owner's ownership stake in the property — what they would receive if they sold the property and paid off the mortgage (before closing costs).

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