Which of the Following Mortgage Scenarios Will Benefit the Homeowner

question 54

Multiple Choice

Which of the following mortgage scenarios will benefit the homeowner the most?

• A) Adjustable rate mortgage when interest rate increases.
• B) Fixed rate mortgage when interest rates falls.
• C) Fixed rare mortgage when interest rate rises.
• D) None of the above, as banker's interest will always be protected.

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Definitions:

Professional Associations

Organizations seeking to further a particular profession, the interests of individuals engaged in that profession, and the public interest.

Shareholder Model

An approach in corporate governance focusing on maximizing the value for the shareholders, the owners of the company.

Corporate Governance

The system by which companies are directed and controlled, involving the mechanisms, processes, and relations by which corporations are regulated and operated.

Management Fixated

Refers to an organizational focus predominately on management perspectives, often at the expense of considering employee viewpoints or other stakeholder interests.