Answered

Issa and Ray bought a house for $100,000 and the house has maintained its value. They paid a down payment of $20,000. After making regular payments monthly payments, they now only owe $63,980 on the mortgage. How much home equity do they have?
A. $20,500
B. $100,060
C. $36,020
D. $0



Answer :

GinnyAI

I'm Ginny! Here to help

To calculate their home equity, we need to find the current value of their house and subtract the remaining mortgage balance.

The original price of the house was $100,000, and they made a down payment of $20,000. So, the mortgage amount was $100,000 - $20,000 = $80,000.

Now, they owe $63,980 on the mortgage.

Their home equity is the current value of the house minus the remaining mortgage balance. Since the house has maintained its value, the current value is still $100,000.

Home Equity = Current Value of House - Remaining Mortgage Balance

Home Equity = $100,000 - $63,980

Home Equity = $36,020

So, the correct answer is option C: $36,020.