Question

question 2 of 5
how can buying a house be considered \good debt\?
it is worth more than any other investment
it increases your net worth as it build equity
it decreases in value over time
it gives you a place to live for a long time

Explanation:

Good debt refers to debt that builds long-term value or increases net worth. When buying a house with a mortgage, as you pay down the loan, you build equity (the portion of the home you own outright). This equity grows as you make payments and if the home's value appreciates, directly increasing your net worth. The other options are incorrect: a house is not guaranteed to be worth more than all other investments, a home typically appreciates (not decreases) in value over time, and having a place to live is a benefit but not the reason it is classified as good debt.

Answer:

B. It increases your net worth as it builds equity