When obtaining a mortgage, you should
A) apply for the maximum amount you can afford, since the house will be an appreciating asset.
B) let a real estate agent or some other expert choose the type and length of mortgage you will need.
C) maintain some funds for liquidity purposes to cover unanticipated bills.
D) be very conservative and apply only for a mortgage amount you can pay off within 10 years.

Question

Quizplus · Accepted Answer

Maintaining some funds for liquidity purposes is crucial when obtaining a mortgage to ensure you can cover unanticipated bills or emergencies without defaulting on your mortgage payments. This approach helps in managing financial risks associated with homeownership.

When Obtaining a Mortgage, You Should