Which of the following statements is true about 15-year and 30-year fixed-payment mortgages? A.A 30-year mortgage will likely have an interest rate lower than that on a 15-year mortgage. B.Borrowers pay more total interest over the life of a 30-year mortgage than on a 15-year mortgage assuming the same interest rate on both mortgages. C.The remaining balance on a 30-year loan declines more quickly than on a 15-year mortgage with the same interest rate. D.Both A and B are true. E.Both B and C are true. F.Both A and C are true. G.All three (A, B and C) are true.

Mortgage means loan taken by company from outsider and repaid in installements with proper interest…

Answered: Which of the following statements is…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Which of the following statements is true about 15-year and 30-year fixed-payment mortgages?

	A.	A 30-year mortgage will likely have an interest rate lower than that on a 15-year mortgage.
	B.	Borrowers pay more total interest over the life of a 30-year mortgage than on a 15-year mortgage assuming the same interest rate on both mortgages.
	C.	The remaining balance on a 30-year loan declines more quickly than on a 15-year mortgage with the same interest rate.
	D.	Both A and B are true.
	E.	Both B and C are true.
	F.	Both A and C are true.
	G.	All three (A, B and C) are true.

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