A Newly Married Couple Is Having Trouble Affording a Home

question 60

Multiple Choice

A newly married couple is having trouble affording a home.What type of mortgage arrangement would reduce the monthly payment as a result of an interest rate subsidy from a builder or real estate developer?

• A)FHA-insured loan
• B)Balloon mortgage
• C)Buy-down
• D)Shared-appreciation mortgage
• E)Growing-equity mortgage

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Definitions:

Henry III

King of England from 1216 until his death in 1272, known for his long reign, conflicts with nobility, and role in the development of parliament.

Huguenot Bourbon

Refers to members of the Bourbon dynasty who were Huguenots, French Protestants, in a predominantly Catholic France, highlighting the religious complexities within the royal family.

Edict of Nantes

A 1598 decree issued by Henry IV of France, granting substantial religious and civil rights to the Huguenots (French Protestants).

Protestants

Followers of any of the Christian denominations that broke away from the Roman Catholic Church during the Protestant Reformation.