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Basic Question 4 of 6

A borrower will MOST LIKELY exercise the prepayment option when ______

A. the value of the underlying property is going up.
B. the general interest rate is falling.
C. the monthly income of the borrower is going up.

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Craig Baugh

Craig Baugh

Learning Outcome Statements

describe fundamental features of residential mortgage loans that are securitized

CFA® 2025 Level I Curriculum, Volume 4, Module 19.