What Is a Leverage Ratio?

Transcript

♪ [music] ♪ - [Narrator] What is a leverage ratio? Let's use a housing example to break it down. Say you're buying a home that costs $100,000. When you put money down on a house that creates a kind of protective cushion. Now, the difference between the value of the house and the unpaid amount of the mortgage, that's called "owner's equity." So now,... Read More