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Whitepunk [10]
1 year ago
8

why might the cost of a mortgage loan be greater than the cost of using unsecured corporate debt to finance corporate real estat

e?
Business
1 answer:
Zolol [24]1 year ago
8 0

For real estate income property, mortgage loans are often made on a non-recourse basis. This means that the risk of default must be included in the mortgage interest rate.

<h3>What is a mortgage loan?</h3>

A mortgage is a form of loan used to purchase or maintain a home, land, or another type of real estate. The borrower agrees to repay the lender over time, often through a series of monthly payments divided into principal and interest. The property is subsequently put up as collateral for the loan.

Borrowers must apply for a mortgage through their preferred lender and meet specific criteria, such as credit score requirements and down payments. Mortgage applications are rigorously scrutinized before they reach the closing stage. Mortgage types vary according to the borrower's needs, such as conventional and fixed-rate loans.

To learn more about a mortgage loan, click

brainly.com/question/15082835

#SPJ4

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