Which of the Following Is True of Conventional Fixed-Rate Mortgages

question 40

Multiple Choice

Which of the following is true of conventional fixed-rate mortgages?

• A)It has a rate of interest that changes according to fluctuations in the index to which it is tied.
• B)It involves no government backing by either insurance or guarantee.
• C)It has a fixed interest rate during the life of the mortgage,where the monthly payments by mortgagor increase over the term of the loan.
• D)It has comparatively low fixed payments during the life of the mortgage,followed by one large final payment.

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