A Disadvantage of Paying Off Your Mortgage with All Your

question 10

Multiple Choice

A disadvantage of paying off your mortgage with all your remaining liquid funds is that

• A)you likely make higher interest with your liquid funds.
• B)you could incur a surprise expense you cannot pay.
• C)you might not be able to qualify for another loan.
• D)early repayment could damage your credit rating.

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Definitions:

Angel Investors

Wealthy individuals who provide capital for start-ups or small businesses in exchange for ownership equity or convertible debt.

Entrepreneurs

Individuals who initiate, manage, and take on the risks of a business or enterprise with the goal of making a profit.

Crowdfunders

Individuals or entities that contribute financial resources to projects or ventures through crowdfunding platforms.

Bootstrapping Strategy

A self-funding approach where a startup or project is funded by the founders' personal finances or generated revenue rather than external investors.