Why might a borrower prefer a fully amortizing loan over an adjustable-rate mortgage? О The monthly mortgage payment will remain constant throughout the term of the loan The principal and interest payment varies each month. The payment towards interest increases as the loan is amortized. The interest rate may increase over the term of the loan
Why might a borrower prefer a fully amortizing loan over an adjustable-rate mortgage? О The monthly mortgage payment will remain constant throughout the term of the loan The principal and interest payment varies each month. The payment towards interest increases as the loan is amortized. The interest rate may increase over the term of the loan
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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Question
![Why might a borrower prefer a fully amortizing
loan over an adjustable-rate mortgage?
О
The monthly mortgage payment will
remain constant throughout the term of the
loan
The principal and interest payment varies
each month.
The payment towards interest increases as
the loan is amortized.
The interest rate may increase over the
term of the loan](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6604c7fa-6a2e-4dde-b4ac-274855cd287d%2F7151e9d0-6bd0-490e-9d6f-59f167a06e0d%2Fqjx1wi_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Why might a borrower prefer a fully amortizing
loan over an adjustable-rate mortgage?
О
The monthly mortgage payment will
remain constant throughout the term of the
loan
The principal and interest payment varies
each month.
The payment towards interest increases as
the loan is amortized.
The interest rate may increase over the
term of the loan
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