Question

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


Please select the best answer from the choices provided

A
B
C
D

Answer 1

D

I is true (higher interest raises payments). II is false (a larger down payment reduces the loan amount and thus lowers payments). III is true (a 30‑year loan spreads payments over more months than a 20‑year loan, so monthly payments are smaller).