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When a Lender Uses Your House as Collateral to Buy

question 47

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When a lender uses your house as collateral to buy an annuity for you from a life insurance company, it is called:


Definitions:

87.5%

A numerical value representing 87.5 parts out of 100; often used in statistical or financial contexts.

Percent Reduction

The percentage by which a quantity is decreased, commonly used in sales and discount contexts.

Interest Rate

The percentage charged on a loan or earned through an investment, representing the cost or yield of capital.

25%

Represents a quarter or one-fourth of a total amount, often used to describe a portion, increase, or interest rate.

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