A person who wants to buy a new house is most likely to apply for which type of loan?A.MortgageB.Cash advanceC.Student loanD.Credit card

Problem Breakdown

1. Identify the types of loans listed in the options.
2. Determine which loan type is most relevant for purchasing a house.

Relevant Concepts

• Mortgage: A specific type of loan used to purchase real estate, where the property itself serves as collateral.
• Cash advance: A service that allows a credit card holder to withdraw cash, not typically used for large purchases like a house.
• Student loan: A loan specifically for educational expenses, irrelevant to home purchasing.
• Credit card: A payment method that may not be suitable for buying a house due to limits and interest rates.

Analysis and Detail

1. Mortgage: Designed specifically for buying property. Usually has lower interest rates and longer repayment terms.
2. Cash advance: Not viable for home purchases due to high fees and interest.
3. Student loan: Intended for financing education, not applicable to real estate.
4. Credit card: While it can be used for some payments, it is not a practical option for purchasing a house.

Verify and Summarize

Out of the four options, a mortgage is the only one designed for purchasing a house, making it the best choice for someone looking to buy property.

Final Answer

A person who wants to buy a new house is most likely to apply for A. Mortgage.