A homebuyer recently obtained a loan to purchase a house. The lender offered a lower interest rate because the loan is secured. Why would a real estate loan be considered a secure loan? О The loan is backed by the property itself. If the borrower defaults on the loan, the lender can sell the property to get their money back. O In order to qualify for a home loan, the borrower must have good credit. Good credit is a form of security for the lender. O All real estate loans are considered unsecure. O Most home loans are long-term loans, which are considered low-risk from the lender's perspective.

A homebuyer recently obtained a loan to purchase a house. The lender offered a lower interest rate because the loan is secured. Why would a real estate loan be considered a secure loan? О The loan is backed by the property itself. If the borrower defaults on the loan, the lender can sell the property to get their money back. O In order to qualify for a home loan, the borrower must have good credit. Good credit is a form of security for the lender. O All real estate loans are considered unsecure. O Most home loans are long-term loans, which are considered low-risk from the lender's perspective.

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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