Equity is the difference between the current market value of a property and the remaining mortgage or loan payments against the property. It is also known as assets minus liabilities. It is also called as :
- Owners equity
- Shareholders equity
Equity types:
- Positive equity-Equity is said to be positive, when the propertys market value increases to become greater than the mortgage value.
- Negative equity- Equity is said to be negative, when the properties market value decreases to become less than the mortgage value.
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