Recently, 15-Year Mortgages Have Increased in Popularity Amongst Both Borrowers

question 35

Multiple Choice

Recently, 15-year mortgages have increased in popularity amongst both borrowers and lenders. Which of the following groups of borrowers would typically be the least interested in a 15-year mortgage?

• A) Mature households with minimal financial constraints
• B) First-time homebuyers
• C) Homeowners who are refinancing to obtain a lower rate than is available on a comparable 30-year mortgage
• D) Homeowners who are interested in selling their property within five years

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Definitions:

Applied Overhead

The portion of overhead costs allocated to individual jobs or products based on a predetermined rate.

Raw Materials Inventory

The total cost of all the components used to manufacture a product that a company has in stock but has not yet used in production.

Factory Overhead

Factory overhead refers to all the indirect costs associated with manufacturing, excluding direct labor and direct materials, such as utility costs and maintenance expenses.

Work in Process Inventory

Products that are under construction but haven't been fully finished.