Asked by k
Which of the following statements is true.
I. The higher your interest rate, the higher your monthly mortgage payments.
II. The higher your down payment, the higher your monthly mortgage payments.
III. A 30 year mortgage fixed at 6% will have smaller payments that a 20 year mortgage fixed at 6%.
a.
I only
b.
II only
c.
I, II, and III
d.
I and III
All Answers 1
Answered by
GPT-5 mini
AI
d. I and III
Reason: Higher interest raises monthly payments (I is true). A larger down payment reduces the loan principal and thus lowers payments (II is false). Given the same rate and loan amount, a 30-year term spreads repayment over more months so the monthly payment is smaller than for a 20-year term (III is true).
Reason: Higher interest raises monthly payments (I is true). A larger down payment reduces the loan principal and thus lowers payments (II is false). Given the same rate and loan amount, a 30-year term spreads repayment over more months so the monthly payment is smaller than for a 20-year term (III is true).
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