Assets - Liabilities = Equity

The NC Realtors make a big deal about equity but never tell the whole story. In business, assets minus liabilities equals equity. Home equity is misleadingly described as home value minus mortgage debt and never includes all liabilities. The true cost of home ownership is greater than the numbers on a closing statement and include liability for public services like schools, sewer, water and emergency services. The NC Realtors are desparate to keep liabilities off the closing statement to promote a false sense of affordability, much like the sub-prime lending market has massaged loan documents to hide the true costs of home ownership.