which of the following statements is true?\na. a 30 - year fixed mortgage will always result in the lowest…
which of the following statements is true?\na. a 30 - year fixed mortgage will always result in the lowest payment.\nb. you must have at least a 20% down payment to get a competitive interest rate.\nc. the lower your interest rate is, the lower your monthly payments are.\nd. the faster you pay off your mortgage, the lower your monthly payments are.\nplease select the best answer from the choices provided\na\nb\nc\nd
Answer
Brief Explanations:
- Option a: A 30 - year fixed mortgage has a long - term and may not always have the lowest payment. Shorter - term mortgages can have lower overall interest costs in some cases.
- Option b: It is not always necessary to have a 20% down payment to get a competitive interest rate. Some lenders offer options with lower down payments.
- Option c: The monthly mortgage payment formula includes the interest rate. A lower interest rate means less interest is charged each month, resulting in lower monthly payments.
- Option d: Paying off a mortgage faster means larger monthly payments to reduce the principal more quickly.
Answer:
C. The lower your interest rate is, the lower your monthly payments are.