Which of the Following Is Accurate Regarding Types of Mortgages

question 40

Multiple Choice

Which of the following is accurate regarding types of mortgages?

• A)A convertible VRM gives you protection in case interest rates go up.
• B)Open mortgages offer slightly better rates than closed mortgages.
• C)Most fixed-rate mortgages are convertible.
• D)With a variable-rate mortgage your payments will never go up if prime goes up.

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Definitions:

Modification

An alteration or amendment to an existing contract or agreement without changing its fundamental essence.

Rescission

the legal act of voiding a contract and returning all parties to their pre-contractual states.

Basis for Rejecting

The rationale or grounds for refusing to accept or deny something, such as an application, offer, or claim.

Delivery of Goods

The process of transporting goods from a seller to the buyer or the point at which the possession and risk of loss of the goods transfer from seller to buyer according to the terms of the contract.