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homework: section 8.7 homework < question 8, 8.7.15 > hw score: 38.33%, 4.6 of 12 points points: 0 of 1 save
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how is the amount of a mortgage determined?
choose the correct answer below.
a. the amount of the mortgage is the difference between the sale price of the home and the down payment.
b. the amount of the mortgage is equal to the down payment on a home.
c. the amount of the mortgage is equal to the sale price of the home.
d. the amount of the mortgage is predetermined percentage of the sale price that the buyer initially pays to the seller.

Explanation:

A mortgage is the loan amount a borrower takes to cover the home cost not covered by their upfront down payment. This means it equals the home's sale price minus the down payment, which matches option A. Options B, C, and D incorrectly describe mortgage calculations: B equates mortgage to down payment, C equates it to full sale price, and D defines it as the initial down payment percentage.

Answer:

A. The amount of the mortgage is the difference between the sale price of the home and the down payment.