Finance
A Wyoming homeowner who has been making mortgage payments for 10 years on a 30-year loan applies for a home equity line of credit (HELOC). The available equity is determined by:
AThe original purchase price only
BThe current market value minus the outstanding mortgage balance✓ Correct
CThe remaining mortgage balance only
DThe county assessed value minus the original purchase price
Explanation
Equity = Current Market Value − Outstanding Mortgage Balance. Over 10 years of payments, equity has grown through both principal reduction and any appreciation in the property's market value.
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