If You Have a Mortgage That Has Fixed Monthly Payments

question 59

Multiple Choice

If you have a mortgage that has fixed monthly payments and a very large final payment,you have a(n)

• A) Balloon mortgage.
• B) Buy-down.
• C) Convertible ARM.
• D) Growing-equity mortgage.
• E) Interest-only mortgage.

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Definitions:

Stockholders' Equity

The residual interest in the assets of a corporation after all liabilities have been deducted, often referred to as shareholder's equity or owners' equity.

Accounts Receivable

Unpaid amounts by customers for products or services they have obtained from a company.

Customer Payments

Funds received from customers as payment for goods or services provided.

Credit Sales

Sales made by a business where payment is deferred to a later date, typically documented by an invoice.