Major Factors That Affect the Affordability of Your Mortgage Include

question 56

Multiple Choice

Major factors that affect the affordability of your mortgage include all of the following except

• A) The amount available for a down payment.
• B) Current mortgage rates.
• C) Income.
• D) Length of the loan.
• E) Size of the home.

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Definitions:

Interest Expense

The cost incurred by an entity for borrowed funds, often a significant component of its operating costs.

Initial Cost

The total expense incurred to acquire an asset, including the purchase price and any other costs necessary to get the asset ready for use.

Corporate Tax Rate

The percentage of a corporation's profits that it must pay as tax to the government.

Straight Line Basis

A method of calculating depreciation or amortization by evenly spreading the cost of an asset over its useful life.