A House Valued at $288 000 with a Down Payment

question 13

True/False

A house valued at $288 000 with a down payment of $71 000 will result in an extra charge for a high ratio mortgage.

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Definitions:

Consumer Price Index

A standard that determines the general average pricing of a group of consumer commodities and services, like transportation, food, and medical care.

Price Stability

A situation in which prices in an economy do not change significantly over time, avoiding periods of inflation or deflation.

CPI

A gauge of the average price levels for a mix of consumer services and products like medical care, transportation, and food, the Consumer Price Index assesses this through a weighted average.

Deflation

A decrease in the general price level of goods and services in an economy over time.