How does equity in a home make money upon resale?

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I am completely lost on the concept of buying a home and the selling it before the mortgage is paid. How does this make money/contribute to a new mortgage?

In: Economics

11 Answers

Anonymous 0 Comments

You get a loan to buy a rock for $10. You paint it and sell it for $20.

You pay the bank back it’s $10 and keep the other $10.

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