Which of the following describes a piggyback loan?
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The correct answer is...
A loan that combines two mortgages to cover the full home value.
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What is a characteristic of short-term hybrid ARMs commonly found in the nonprime mortgage market?
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They combine a fixed-rate period with a subsequent adjustable-rate period.
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What factors contributed to the 2007–2008 mortgage crisis related to ARMs and nontraditional loans?
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The correct answer is...
Aggressive marketing of adjustable-rate mortgages, interest-only loans, and other nontraditional products, combined with lax underwriting standards, rising home prices, and widespread securitization.
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Transcript
Which of the following describes a piggyback loan?
Flip flashcard to reveal answer
The correct answer is...
A loan that combines two mortgages to cover the full home value.
Next card
Go Back
What is a characteristic of short-term hybrid ARMs commonly found in the nonprime mortgage market?
Flip flashcard to reveal answer
Go Back
The correct answer is...
They combine a fixed-rate period with a subsequent adjustable-rate period.
Next card
Go Back
What factors contributed to the 2007–2008 mortgage crisis related to ARMs and nontraditional loans?
Flip flashcard to reveal answer
Go Back
The correct answer is...
Aggressive marketing of adjustable-rate mortgages, interest-only loans, and other nontraditional products, combined with lax underwriting standards, rising home prices, and widespread securitization.
Go Back