Nardo is reviewing his mortgage options with his mortgage broker. With regards to his $200,000 mortgage, he is wondering which option, compounded semi-annually would result in the lowest total interest paid?

Question

Question 5Select one:

a.
A 3.5% interest rate, paid bi-weekly and amortized over 15 years

b.
A 4% interest rate, paid monthly and amortized over 15 years

c.
A 3.25% interest rate, paid monthly and amortized over 22 years

d.
A 3.5% interest rate, paid monthly and amortized over 20 years

Answer 1

a. A 3.5% interest rate, paid bi-weekly and amortized over 15 years