12 Mortonges increase the risk faced by homeowners. a. Explain how The mortgage is leverage for the homeowner, and leverage (Clok to select) risk b. What happens to the homeowner's risk as the down payment on the house rises from 7 percent to 60 percent? Instructions: Enter your responses rounded to one decimal place. With a down payment of 7 percent, the leverage ratio is with a down payment of 60 percent, the leverage ratio is A down payment of 60 percent Click to select the leverage ratio by a factor of relative to a down payment of 7 percent (Hint: Refer to the Tools of the Trade The Impact of Leverage on Risk: Leverage ratio cost of the investment/owner's contribution to the purchase)