Assume that Jocelyn is comparing two fixed-rate loan options, a 15 year and a 30 year mortgage. Both options have the same interest rate and amount borrowed. The 30 year, when compared to the 15 year loan will have a 1)_____________ monthly payment and a 2)___________ total cost when repayment is completed.

Question

a. Higher, Higher
b. Higher, Lower
c. Lower, Higher
d. Lower, Lower
I picked c

Answer 1

My answer is b.