A Home Equity Loan Is Based on the Difference Between

question 112

True/False

A home equity loan is based on the difference between the current market value of your home and the amount you still owe on your mortgage.

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Definitions:

Net Income

The amount of profit left after all operating expenses, taxes, and interest are deducted from total revenue.

Interest Receivable

An asset account on the balance sheet representing the amount of interest income that has been earned but not yet received in cash.

Interest Revenue

Income earned by lending funds or allowing another entity to use your funds, such as interest from savings accounts, bonds, or loans receivable.

Brokerage Fees

Charges applied by a broker for executing transactions or providing specialized services.