When home prices are rising it is easier for homeowners who have fallen behind on their mortgages to get caught up because ________.

Question

Quizplus · Accepted Answer

When home prices are rising, the value of the house increases and the built-up equity in the home also rises. Homeowners can use this equity to refinance their mortgages and catch up on any back payments. This can also help reduce the monthly payments and make it easier for them to stay current on their mortgage. Option A is not always feasible as selling and buying a new home can come with additional costs and fees. Option C might not generate enough income to cover the mortgage payment. Option D is not accurate as property taxes are usually based on the assessed value of the property and not the current market value.

When Home Prices Are Rising It Is Easier for Homeowners