A Loan Based on the High Equity in a Home

question 39

Multiple Choice

A loan based on the high equity in a home that provides the homeowner with tax-free income and which is paid back when the home is sold or the homeowner dies is called a:

• A)conventional mortgage.
• B)growing equity mortgage.
• C)second mortgage.
• D)reverse mortgage.
• E)adjustable rate mortgage.

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Definitions:

Genetic Predispositions

Natural tendencies or susceptibilities influenced by genetic makeup that may increase the chance of developing particular traits or disorders.

Sandwich Generation

A generation of people who care for their aging parents while supporting their own children.

Middle Adulthood

A stage of life, typically considered to be from about 45 to 65 years of age, characterized by stability, sound relationships, and a sense of contributing to society.

Adolescence

The transitional stage of physical and psychological development that generally occurs during the period from puberty to legal adulthood.