A Larger Down Payment Is Needed for a 18-Year Fixed

question 23

True/False

A larger down payment is needed for a 18-year fixed rate mortgage than for a 30-year fixed rate mortgage.

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Definitions:

Incidence

In economics, the allocation or distribution of a tax's economic burden between buyers and sellers.

Tax Rate Structure

The percentage of a tax base that must be paid in taxes—25 percent of income, for example.

Tax Base

The tax base is the total amount of income, property, assets, or other wealth that is subject to taxation by a taxing authority.

Marginal Tax Rate

The rate at which the next dollar of taxable income is taxed, indicating the impact of each additional dollar of income on taxes owed.