Option and 2/28 mortgages
A) have contributed to the subprime mortgage crisis.
B) are used by high income individuals in need of jumbo financing.
C) are subsidized by the federal government.
D) have a high initial rate that declines when the borrowers credit rating improves.
Correct Answer:
Verified
Q60: The mortgage contract rate
A)takes into account all
Q61: Negative amortization results when
A)the monthly interest payment
Q62: Private mortgage insurance
A)is typically required when the
Q63: Federal Housing Administration (FHA)insurance protects
A)you against defective
Q64: "Conventional financing" consists of all home loans
A)made
Q66: Convertible home mortgages permit the borrower to
A)convert
Q67: The acceleration clause allows
A)you to repay a
Q68: Possible negative amortization resulting from a rise
Q69: Adjustable rate mortgages
A)impose both higher risk and
Q70: Two organizations that help low-income earners obtain
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