Which of the Following Statements About Interest-Only Mortgages Is Not

question 81

Multiple Choice

Which of the following statements about interest-only mortgages is not true?

• A) Interest-only mortgages cannot be Qualified Mortgages under The Consumer Financial Protection Bureau's rules.
• B) Mortgage payments may increase abruptly.
• C) Interest-only mortgages allow the borrower to pay only interest for the life of the mortgage.
• D) Interest-only mortgages were popular before the financial crisis.

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Definitions:

Commercial Insurers

Private entities that provide a range of health insurance plans and policies to individuals and businesses, operating for profit.

Actuarial

Pertaining to actuaries or the statistical and mathematical methods they use to calculate risk, especially in the insurance and finance industries.

Community Risk

The potential for harm or adverse effects on a community due to external or internal variables.