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Requiring a Home Buyer to Have a Large Down Payment

Question 75

Multiple Choice

Requiring a home buyer to have a large down payment reduces the risk to a mortgage lender because:


A) If the price of the home falls the buyer is still likely to stay
B) The buyer is less likely to sell the house
C) It means the buyer likely underpaid when she bought the house
D) It means there is more information available on the buyer

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