Which of the Following Is TRUE Regarding the Incremental Cost

question 27

Multiple Choice

Which of the following is TRUE regarding the incremental Cost of Borrowing :

• A) It should be less than the rate for a first mortgage
• B) It should be compared to the cost of obtaining a second mortgage
• C) It is used to calculate the APR for the loan
• D) It is independent of Loan-to-Value Ratio

---

Definitions:

Datum Feature Symbol

A symbol used in geometric dimensioning and tolerancing to specify a reference for measurements.

MMC

Maximum Material Condition; a feature size where it contains the maximum amount of material within the stated limits of size.

Perpendicularity

The state or condition of being perpendicular, meaning two lines or planes intersect at a right angle (90 degrees) to each other.

Tolerance of Form

Specifies the allowable deviation from the ideal shape of an object without specifying size, ensuring parts fit together correctly.