A Mortgage Lender Will Lend Based on a Proportion of the Appraisal

question 67

True/False

A mortgage lender will lend based on a proportion of the appraisal or sale price, whichever is less. This is called the loan-to-value ratio.

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Definitions:

Toll Increase

A raise in the charges levied on travelers for using a particular stretch of road, bridge, or tunnel.

Point Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in its price at a specific point on the demand curve.

Market Supply Curve

A graphical representation showing the total quantity of a particular good or service that producers are willing to sell at various price points.

Rubber Erasers

Small, often rubbery objects used for removing pencil and sometimes ink marks from paper.