An owner bought a property for $190,000 with 20% down. The current loan amount is $102,000. What is the owner's equity assuming the property appraises at $185,000?

To determine the owner's equity in the property, it's essential to understand the definitions of equity and how it is calculated. Owner's equity in real estate is defined as the difference between the current market value of the property and the outstanding mortgage balance.

In this scenario, the property is appraised at $185,000, which reflects its current market value. The outstanding loan balance, which represents the amount still owed to the lender, is $102,000.

To calculate the owner's equity, you subtract the loan amount from the appraised value:

Owner's Equity = Current Market Value - Outstanding Loan Balance

Substituting in the provided numbers:

Owner's Equity = $185,000 (appraised value) - $102,000 (loan amount)
Owner's Equity = $83,000

Thus, the owner’s equity in the property is $83,000. This result highlights how the market value of a property and the amount owed on the loan interact to determine a homeowner's financial stake in their property. The correct answer accurately reflects this calculation.