Choose the One Most Appropriate Answer for Each

question 58

Multiple Choice

Choose the one most appropriate answer for each.
-a limit on how much a borrower's payment can increase in any one year

• A)adjustment period
• B)adjustable rate mortgage (ARM)
• C)blanket mortgage
• D)blended-rate loan
• E)buy-down mortgage
• F)carryback financing
• G)contract for deed
• H)equity mortgage
• I)equity sharing
• J)graduated payment mortgage
• K)interest rate cap
• L)negative amortization
• M)option
• N)overencumbered property
• O)package mortgage
• P)payment cap
• Q)reverse mortgage
• R)sale and leaseback
• S)subordination
• T)wraparound mortgage

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Definitions:

Fundamental Attribution Error

This refers to the tendency of individuals to overemphasize personality traits and underestimate situational factors when explaining another's behavior.

Actor-Observer Effect

A social psychology phenomenon where individuals attribute their own actions to situational factors but the actions of others to their personalities.

Situational Attributions

The process of attributing someone's behavior to external factors, such as situational influences or environmental conditions, as opposed to personal characteristics.

Causal Attributions

Explanations of an individual’s behavior.