If the amount you owe on your house is greater than the price of the house, you
ID: 1195626 • Letter: I
Question
If the amount you owe on your house is greater than the price of the house, you have A. Negative equity in your house B. A mortgage rate that is too high C. No value to your house D. A reverse mortgage on your house If the amount you owe on your house is greater than the price of the house, you have A. Negative equity in your house B. A mortgage rate that is too high C. No value to your house D. A reverse mortgage on your house A. Negative equity in your house B. A mortgage rate that is too high C. No value to your house D. A reverse mortgage on your houseExplanation / Answer
Correct option (A). This situation is called a Negative Equity.
Negative equity arises when the loan on an asset exceeds the asset value.
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