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since mortgages typically have multiple costs associated with them, a borrower may attempt to reduce these costs into a single measure in order to compare two or more mortgages. which of the following measures is a popular tool for comparing the cost of several mortgages?

Answer :

Mortgages are loans that are used to buy homes and different styles of real property. The belongings itself serves as collateral for the mortgage. Mortgages are to be had in a ramification of kinds, such as fixed-fee and adjustable-price.

loan rates within the Netherlands declined progressively between 2008 and 2021, attaining the lowest discern on record of 1.sixty five percentage. though, in 2022, interest rates elevated as a response to the developing inflation. As of August, the average loan price for a new mortgage amounted to 2.sixty three percent.

A loan is a need in case you can't pay the full fee of a home out of pocket. There are some cases wherein it makes experience to have a mortgage on your private home even though you've got the money to pay it off. for instance, traders once in a while loan properties to free up budget for different investments.

Maximum mortgage creditors will recollect lending four or 4.5 times a borrower's profits, so long as you meet their affordability criteria. In some instances, we ought to discover creditors inclined to head up to 5 times profits. In a few extraordinary cases, you might be able to borrow as much as 6 instances your annual income.

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