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Positive equity refers to the situation where the value of an asset exceeds the outstanding liabilities associated with it. For example, in real estate, if a homeowner's property is worth $300,000 but they owe $200,000 on their mortgage, they have positive equity of $100,000. This indicates financial strength, as the owner has a stake in the asset that can be realized through sale or refinancing. Positive equity can also enhance borrowing capacity and financial stability.

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2mo ago

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How can I determine if I have equity in my home?

To determine if you have equity in your home, subtract the amount you owe on your mortgage from the current market value of your home. If the result is a positive number, you have equity in your home.


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Difference between equity and owner's equity?

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what are disadvatage of equity theory