Sara just bought her first new home. She put 20% down and got a mortgage for the remainder. The difference between what Sara owes and what her home is worth is known as what?

Equity

Explanation:

Since, We know that,

The amount she owen is called her liability while the worth of his home is her asset,

Also, the difference between the value of the assets and the value of the liabilities of something owne is called Equity,

Hence, the difference between what Sara owes and what her home is worth is known as Equity.