A mortgage where the borrower has to turn over a portion of the profit from selling the house to the lender is called?

A mortgage where the borrower has to turn over a portion of the profit from selling the house to the lender is called?

• A. A fixed-rate mortgage
• B. An adjustable-rate mortgage
• C. A shared appreciation mortgage
• D. A reverse mortgage

Answer: (C)

A shared appreciation mortgage is the correct answer because it involves the borrower sharing a portion of the profits from selling the house with the lender. This is different from a fixed-rate mortgage, where the borrower pays a fixed interest rate over the life of the loan. An adjustable-rate mortgage also involves interest rate changes, but does not involve sharing profits with the lender. A reverse mortgage is a type of loan where homeowners receive payments based on the equity of their home and do not have to make monthly payments, but they do not have to share any profits from selling the house with the lender.

A shared appreciation mortgage is the correct answer because it involves the borrower sharing a portion of the profits from selling the house with the lender. This is different from a fixed-rate mortgage, where the borrower pays a fixed interest rate over the life of the loan. An adjustable-rate mortgage also involves interest rate changes, but does not involve sharing profits with the lender. A reverse mortgage is a type of loan where homeowners receive payments based on the equity of their home and do not have to make monthly payments, but they do not have to share any profits from selling the house with the lender.