when it comes to fixed loans, the 15 - year and the 30 - year mortgage are the most common choices. which of…

when it comes to fixed loans, the 15 - year and the 30 - year mortgage are the most common choices. which of the following is true about 15 - year fixed mortgage? choose 1 answer: a after 15 years, the interest rate will usually get higher. b its monthly payments are typically less than those of other mortgages. c you can pay off your home loan in 15 years. d its total cost over the life of the loan is higher compared to other mortgages.
Answer
Explanation:
Step1: Analyze option A
A fixed - rate mortgage has a constant interest rate throughout the loan term. So, the interest rate of a 15 - year fixed mortgage will not get higher after 15 years. Option A is false.
Step2: Analyze option B
15 - year fixed mortgages typically have higher monthly payments compared to 30 - year mortgages because the loan is paid off in a shorter time. Option B is false.
Step3: Analyze option C
The whole point of a 15 - year fixed mortgage is that you can pay off your home loan in 15 years. This is correct.
Step4: Analyze option D
Since 15 - year fixed mortgages have a shorter loan term, the total interest paid over the life of the loan is usually lower compared to longer - term mortgages like 30 - year mortgages. Option D is false.
Answer:
C. You can pay off your home loan in 15 years.