Each of the following is a key difference between permanent commercial loans and construction commercial loans...
- Each of the following is a key difference between permanent commercial loans and construction commercial loans EXCEPT.
- Construction loans are shorter in duration that permanent loans
- Permanent loans have lower default risk.
- Construction loans have higher interest rate risk.
- Permanent loans are distributed all at once instead of gradually.
- All of the following are key differences between permanent and construction loans.
Homework Answers
Option C is correct
We see that Construction loans have higher interest rate risk. This statement is false because construction loans are short term and hence have lower interest rate risk.
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