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Home Equity and Personal Balance Sheets

Provided by Khan Academy


For someone who plans to buy a house, it is essential to learn to balance their personal assets and liabilities, while accounting for home equity loan. The first part of the video tutorial explores assets, liabilities and owner's equity by using a home purchase example.

In the second part of the tutorial you will see what happens to equity when the value of assets increases or decreases.

The concluding part of the tutorial explores an example of borrowing from equity.

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