If a prospective buyer is adamantly opposed to an adjustable rate or graduated payment mortgage, the agent should
A. Condition the agreement upon the buyer's ability to obtain a fixed rate loan
B. Explain that any reasonable person would accept such financing
C. Represent to the buyer that interest rates have not increased in the past 5 years
D. Any of the above
Answer: A. Condition the agreement upon the buyer's ability to obtain a fixed rate loan
You might also like to view...
In the capital asset pricing model, the general risk preferences of investors in the marketplace are reflected by ________
A) the risk-free rate B) the level of the security market line C) the slope of the security market line D) the difference between the beta and the risk-free rate
A secured loan should have a higher interest rate because the lender has less risk and therefore
values the loan more highly. Indicate whether the statement is true or false