The table below shows four households that each purchased a $500,000 home but with different initial down payments. The table then shows the financial impact after the market value of each home decreases by $50,000.
| Household | Initial Down Payment | Initial Loan Amount | Equity After Price Drop | % Loss of Initial Equity |
|---|---|---|---|---|
| A | $25,000 (5%) | $475,000 | -$25,000 | 200% |
| B | $50,000 (10%) | $450,000 | $0 | 100% |
| C | $100,000 (20%) | $400,000 | $50,000 | 50% |
| D | $250,000 (50%) | $250,000 | $200,000 | 20% |
Based on the data in the table, what is the primary relationship demonstrated between a household's initial financial position and its vulnerability to a fall in property value?
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The table below shows four households that each purchased a $500,000 home but with different initial down payments. The table then shows the financial impact after the market value of each home decreases by $50,000.
Household Initial Down Payment Initial Loan Amount Equity After Price Drop % Loss of Initial Equity A $25,000 (5%) $475,000 -$25,000 200% B $50,000 (10%) $450,000 $0 100% C $100,000 (20%) $400,000 $50,000 50% D $250,000 (50%) $250,000 $200,000 20% Based on the data in the table, what is the primary relationship demonstrated between a household's initial financial position and its vulnerability to a fall in property value?