A Homeowner Whose House Is Worth $500,000 but Who Owes

question 80

True/False

A homeowner whose house is worth $500,000 but who owes $600,000 on their mortgage is a good candidate for a home equity loan,so that the homeowner can build their equity.

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Definitions:

Implies

Suggests or indicates something without expressing it directly.

Draws

In a financial context, it refers to a type of credit advance or salary payment made against future earnings or revenue.

Check

A written, dated, and signed instrument that contains an unconditional order directing a bank to pay a definite sum of money to a payee.

Impostor

An individual who deceives others by assuming a false identity or title, often to gain certain advantages, access, or to commit fraud.