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A Loan Based on the Difference Between the Appraised Value

question 79

Short Answer

A loan based on the difference between the appraised value of your house and the balance due on your mortgage is called a(n) ________ loan.


Definitions:

Effective Annual Yield

The return on an investment expressed as an annual rate, taking into account the effect of compounding interest.

Selling Today

The act of disposing of an asset or security in the current market with the intention of realizing its current value.

Par-value

The face value of a bond or stock, as stated by the issuing company, which is typically the amount paid out at maturity for bonds.

Yield To Maturity

The total return anticipated on a bond if the bond is held until it matures, taking into account both current income and capital gains or losses.

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