how are mortgage and auto loans similar?\nthe loan is issued by the seller.\nmoney is given to the borrower…

how are mortgage and auto loans similar?\nthe loan is issued by the seller.\nmoney is given to the borrower monthly.\ninterest rates are rarely charged.\nthe item purchased is used as collateral.

how are mortgage and auto loans similar?\nthe loan is issued by the seller.\nmoney is given to the borrower monthly.\ninterest rates are rarely charged.\nthe item purchased is used as collateral.

Answer

Answer:

D. The item purchased is used as collateral.

Brief Explanations:

In both mortgage and auto - loans, the property (house in mortgage, car in auto - loan) bought with the loan is used as collateral. If the borrower defaults, the lender can seize the item. The loan is usually issued by a bank or financial institution, not the seller. Money is not given monthly in the sense described in option B, and interest rates are commonly charged for both types of loans.