Which of the Following Would Increase the Speed of Equity

question 23

Multiple Choice

Which of the following would increase the speed of equity growth for a homebuyer?

• A) Making a down payment of 10 percent instead of 20 percent
• B) Obtaining a mortgage interest rate of 9 percent instead of 8 percent
• C) Obtaining a 15-year mortgage instead of a 30-year mortgage
• D) Making larger deposits to the escrow account
• E) Obtaining an interest-only mortgage

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Definitions:

Price

The amount of money required to purchase a good or service, determined by factors such as supply and demand.

Quantity Demanded

The aggregate quantity of a product or service that buyers are prepared and capable of buying at a specific price.

Quantity Demanded

The sum of a good or service desired by consumers at a certain price within a set period.

Price Decrease

A reduction in the cost at which goods or services are sold in the market.