Alysa and Todd purchased a home in 1999 for $80,000 with no down payment. In 2004, they were able to refinance their mortgage on the home for $140,000. They reinvested $75,000 into the home, adding a new addition and making upgrades. In 2006, the couple sold the home for $320,000. What was the value of Alysa and Todd's equity in 2006?

Question

Quizplus · Accepted Answer

In 2006, the couple sold the home for $320,000. They refinanced their mortgage in 2004 for $140,000, so they owed $140,000. Their equity is the sale price minus the mortgage owed: $320,000 - $140,000 = $180,000.

Alysa and Todd Purchased a Home in 1999 for $80,000