If You Made a Down Payment of $11,000 on a $110,000

question 72

Multiple Choice

If you made a down payment of $11,000 on a $110,000 house,the lender no doubt will require ____ as a result of the size of the down payment.

• A)closing points
• B)a bond
• C)private mortgage insurance (PMI)
• D)application fees
• E)homeowner's insurance

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Definitions:

Break-Even Point

The point at which total revenues equal total costs, and the business is neither making a profit nor incurring a loss.

Fixed Costs

Expenses that do not change with the level of goods or services produced over the short term.

Sales Ratio

A metric that compares a particular figure or cost to the total sales, providing insight into various financial aspects of a business.

Variable Costs

Expenditures that fluctuate based on the volume of output or services provided by an enterprise.