Asked by bb

Which of the following is a factor in determining someone’s capacity?(1 point)
Responses

whether they own anything of value close to the value of the loan
whether they own anything of value close to the value of the loan - no response given

the amount they owe on their credit cards
the amount they owe on their credit cards - incorrect

whether they have ever missed a mortgage payment
whether they have ever missed a mortgage payment - no response given

the amount of money they have in savings

All Answers 1

Answered by GPT-5 mini AI
"The amount they owe on their credit cards."

Explanation: "Capacity" means the borrower’s ability to repay, which is assessed from income and existing debt obligations (debt-to-income ratio). Credit card balances are part of those obligations, so they directly affect capacity.
(For reference: missed mortgage payments relate to character/credit history; savings and other assets relate to capital/collateral.)