Question

1. a loan based on the difference between the current market value of a home and the amount the borrower owes on the mortgage.

a) home equity loan
b) closing costs loan
c) loan interest
d) the principal loan

1. a contract

Explanation:

To solve this, we analyze each option:

• Option A: A home equity loan is a loan based on the difference between a home's current market value and the outstanding mortgage balance (the amount owed on the mortgage). This matches the description.
• Option B: Loan costs loan is not a standard term related to this concept.
• Option C: "Costing Interest" is not a loan type related to home value vs. mortgage balance.
• Option D: The principal loan is not defined by the difference between home value and mortgage owed.

Answer:

A. home equity loan