Question

question 8 (10 points)
______ mortgage loans become available once a homeowner has built equity, meaning that the value of his or her home is greater than outstanding mortgage loans and judgments.
○ a) purchase price
○ b) fha
○ c) home equity
○ d) adjustable rate

Explanation:

Home equity loans are available when a homeowner has built equity (home value > outstanding mortgage loans). Purchase - price loans are for buying a home. FHA loans are insured by the Federal Housing Administration. Adjustable - rate loans have variable interest rates.

Answer:

C. Home equity