If you were in early 2021with the once-in-a-generation low interest rate environment, and the rates would likely to increase in the next decade. If you graduated from college in the early 2021 and have a decent job, you have decided to purchase a relative expensive house to your income. Suppose that a bank offered you three types of mortgages: adjusted rate mortgage (ARM), fixed-rate mortgage with constant payments (FRM) and graduated payment mortgage (GPM). Which type of mortgage should you choose and why?
If you were in early 2021with the once-in-a-generation low interest rate environment, and the rates would likely to increase in the next decade. If you graduated from college in the early 2021 and have a decent job, you have decided to purchase a relative expensive house to your income. Suppose that a bank offered you three types of mortgages: adjusted rate mortgage (ARM), fixed-rate mortgage with constant payments (FRM) and graduated payment mortgage (GPM). Which type of mortgage should you choose and why?
Chapter7: Credit Cards And Consumer Loans
Section: Chapter Questions
Problem 2LTAI
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If you were in early 2021with the once-in-a-generation low interest rate environment, and the rates would likely to increase in the next decade. If you graduated from college in the early 2021 and have a decent job, you have decided to purchase a relative expensive house to your income. Suppose that a bank offered you three types of mortgages: adjusted rate mortgage (ARM), fixed-rate mortgage with constant payments (FRM) and graduated payment mortgage (GPM). Which type of mortgage should you choose and why?
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