The Clarks borrowed $175,000 from a lender to purchase a townhouse. This is an example of _____.A.a mortgageB.revolving creditC.a line of creditD.collateralSUBMITarrow_backPREVIOUS
Question
The Clarks borrowed $175,000 from a lender to purchase a townhouse. This is an example of _____.A.a mortgageB.revolving creditC.a line of creditD.collateralSUBMITarrow_backPREVIOUS
Solution
This is an example of A. a mortgage. When someone borrows money to purchase a house or property, it is typically referred to as a mortgage. The property itself serves as collateral for the loan. If the borrower fails to pay back the loan, the lender can take the property to recover its loss.
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