Risks associated with home ownership may include 1.excessive use of financial leverage
2)fluctuations in home values
3)possible theft and fire

Question

Quizplus · Accepted Answer

All of the choices are potential risks associated with home ownership. Using excessive financial leverage means taking on more debt than one can comfortably handle, putting the homeowner at risk for financial hardship or even foreclosure if they are unable to make the mortgage payments. Fluctuations in home values can also be a risk, as homeowners may owe more than their home is worth during market downturns. Possible theft and fire pose a risk to both the physical property and the contents inside the home. Therefore, all of these choices should be considered when weighing the risks associated with home ownership.

Risks Associated with Home Ownership May Include 1