The equity in real estate investment refers to: a) the price at which the lender's and borrowers values are balanced

The equity in real estate investment refers to: a) the price at which the lender's and borrowers values are balanced b) the borrowers or owners share of the property value. c) the legal fairness between buyer and seller

Expert Solution

b) borrowers or owners share of the property value is correct. Equity means Own/ Self contribution so before applying for a home loan ( or any kind of a real estate investment), banks normally ask how much is the equity i.e. how much is the loan applicant putting up from his own pocket. Good amount of equity thus will help in getting a loan sanctioned.

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