If property value is 500,000 and the mortgage balance is 320,000, what is the owner's equity?

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Study for the Washington Real Estate Fundamentals Rockwell Exam. Utilize flashcards, multiple choice questions with hints and explanations. Prepare thoroughly for your real estate career!

Multiple Choice

If property value is 500,000 and the mortgage balance is 320,000, what is the owner's equity?

Explanation:
Owner’s equity is the portion of the property that the owner truly owns after debts secured by the property are paid. It equals the current market value minus the outstanding loan balance. With a property valued at 500,000 and a mortgage balance of 320,000, subtract 320,000 from 500,000 to get 180,000. So the owner’s equity is 180,000.

Owner’s equity is the portion of the property that the owner truly owns after debts secured by the property are paid. It equals the current market value minus the outstanding loan balance. With a property valued at 500,000 and a mortgage balance of 320,000, subtract 320,000 from 500,000 to get 180,000. So the owner’s equity is 180,000.

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