eli5:Please explain to me what is meant by term “equity” , if possible also explain with the help of an easy example , i am unable to understand from google also the example there are complicated
In: Economics
If you’re buying a 200,000 house, you don’t usually have that all up front. Say you have 50,000 for the down payment. Then you have the bank pay for the rest of it, and slowly “buy” your house back from the bank over time.
The part of the home that you’ve paid for is called equity.
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