buying a home reading quiz\nquestion 10 of 10: when a borrower chooses a longer - term mortgage over a…

buying a home reading quiz\nquestion 10 of 10: when a borrower chooses a longer - term mortgage over a shorter term, the payments decrease and the total interest paid over the term of the loan:\n\na) decreases.\n\nb) increases.\n\nc) remains the same.\n\nd) is not impacted.

buying a home reading quiz\nquestion 10 of 10: when a borrower chooses a longer - term mortgage over a shorter term, the payments decrease and the total interest paid over the term of the loan:\n\na) decreases.\n\nb) increases.\n\nc) remains the same.\n\nd) is not impacted.

Answer

Brief Explanations:

When a borrower opts for a longer - term mortgage, the loan is spread over more periods. With lower periodic payments, the principal is paid off more slowly. As interest is calculated based on the outstanding principal over time, the longer the loan term, the more interest accumulates over the life of the loan.

Answer:

B. increases