Question

question 4 of 10
having more equity following the purchase of a home indicates that the
purchaser:
a. made a larger down payment.
b. created more value by buying the home.
c. paid more interest when buying the home.
d. earned the right to make the investment.

Explanation:

Home equity is the portion of the home's value owned by the purchaser, calculated as home value minus outstanding mortgage balance. A larger down payment reduces the initial mortgage amount, directly increasing the purchaser's equity in the home at the time of purchase. The other options are incorrect: home value creation depends on market changes post-purchase, not initial equity; more interest paid reduces equity over time; and the right to invest is not tied to equity level.

Answer:

A. made a larger down payment.