Question

The difference between the value of a home and how much you owe on the mortgage is called _____.







A.

amortization








B.

appreciation








C.

a line of credit








D.

equity

Answer 1

i think it's d

Answer 2

A. Amortization:Means loan payment by equal periodic payment calculated to pay off the debt at the end of a fixed period, including accrued interest on the outstanding balance.

B. Appreciation: a mortgage in which a borrower receives a below-market interest rate in return for which the lender (or another investor such as a family member or other partner) receives a portion of the future appreciation in the value of the property. May also apply to mortgage where the borrowers shares the monthly principal and interest payments with another party in exchange for part of the appreciation.

C. Line of Credit: any credit source extended to a government, business or individual by a bank or other financial institution.

D. Equity: the residual claim or interest of the most junior class of investors in assets, after all liabilities are paid.