Which of the following reflects the concept of equity in a home?

The concept of equity in a home refers to the ownership value that homeowners have in their property. This is calculated as the difference between the current market value of the home and the amount remaining on the mortgage. Essentially, equity represents what you would actually receive if you sold your home and paid off your remaining mortgage.

When homeowners make mortgage payments and property values increase, their equity often rises, reflecting their investment in the home. Therefore, understanding equity is crucial for financial planning and evaluating the net worth associated with real estate assets. This means that option B accurately captures the essence of equity by highlighting this difference; it quantifies the actual stake the homeowner has in their property, considering the debt still owed.