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The lender takes the property of a pile in the stockholders' equity of the property. This means that they lend to you less than the full quantity which is required to buy the house. The interest is only charged on the quantity that they lend to you and not on the full value of the property. When you sell the property, the lender proportionally receives the payment with the quantity of stockholders' equity that they have, and thus draws benefit from any raising of prices of the property. |
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