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12 September, 19:51

Q 6.18: Maria owns a house with a fair market value of $275,000. When Maria purchased the house she paid $210,000 but that was several years ago. She currently owes $195,000. How much equity has Maria built since she first purchased the house?

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  1. 12 September, 20:11
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    Maria has built $80,000 of equity since she first purchased the house.

    Explanation:

    Maria currently owes: $195,000

    Fair market value of home: $275,000

    Maria's Home equity = Current home worth - What Maria currently owes

     Maria's Home equity = $275,000 - $195,000

     Maria's Home equity = $80,000
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