Question: Explain why a home equity mortgage loan can be a better source of funds for household needs than other types of consumer debt. Give three

  1. Explain why a home equity mortgage loan can be a better source of funds for household needs than other types of consumer debt.
  2. Give three different ways that an individual could invest in the mortgage market. Include at least one mutual fund that purchases mortgage-backed securities.
  3. In many other capitalistic countries, there are laws requiring a down payment of 20% of the propertys value for residential mortgages. Counterintuitively, homeownership is higher in many of these countries than in the USA (on a percentage basis). In your opinion, why might this be the case?

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