julie bought a house for $315,000 and has a $285,000 mortgage. she claims she has $315,000 in equity. is she…

julie bought a house for $315,000 and has a $285,000 mortgage. she claims she has $315,000 in equity. is she correct? if not, how much home equity does she have? explain.

julie bought a house for $315,000 and has a $285,000 mortgage. she claims she has $315,000 in equity. is she correct? if not, how much home equity does she have? explain.

Answer

Explanation:

Step1: Recall the formula for home equity

Home equity = Home value - Mortgage amount

Step2: Substitute the given values

Home value = $315,000$, Mortgage amount = $285,000$ Home equity = $315000 - 285000$

Step3: Calculate the result

$315000-285000 = 30000$

Answer:

Julie is not correct. Her home equity is $30,000$. Home equity is calculated as the value of the home minus the mortgage amount. Using the formula (Home\ equity=Home\ value - Mortgage\ amount), substituting (Home\ value = 315000) and (Mortgage\ amount=285000), we get (315000 - 285000=30000).