A Type of Financing Made Available by a Builder or Seller

question 18

Multiple Choice

A type of financing made available by a builder or seller to a potential new-home buyer at well below market interest rates, often only for a short period, is termed a:

• A) conventional mortgage.
• B) convertible adjustable-rate mortgage (ARM).
• C) buydown.
• D) two-step adjustable-rate mortgage (ARM).
• E) growing-equity mortgage.

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Definitions:

Altruism

A selfless act of concern for the well-being of others, often at a personal cost.

Polygyny

Polygyny is a form of polygamy where a man has more than one wife at the same time, practiced in several cultures around the world for various reasons, including social, economic, and religious.

Operant Conditioning

A learning process through which the strength of a behavior is modified by reward or punishment.

Classical Conditioning

A training technique in which pairing two signals repeatedly results in a response, which initially is produced by the second signal, being eventually induced by only the first signal.