Finance
A mortgage that allows the borrower to draw funds up to a set limit during a draw period is called:
AA reverse mortgage
BA home equity line of credit (HELOC)✓ Correct
CA construction loan
DA balloon mortgage
Explanation
A HELOC (Home Equity Line of Credit) is a revolving credit line secured by home equity, with a draw period during which the borrower can withdraw funds and a repayment period.
Related Georgia Finance Questions
- The Equal Credit Opportunity Act (ECOA) prohibits lenders from discriminating in lending based on:
- The secondary mortgage market primarily provides liquidity by:
- An assumption of an existing mortgage means:
- The loan-to-value ratio (LTV) is calculated as:
- An interest rate cap on an ARM loan protects the borrower by:
- Discount points paid at closing are used to:
- A seller who finances the buyer's purchase directly holds a:
- A mortgagor is the:
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