Which of the Following Statements Is True Regarding Home Mortgages

question 174

Multiple Choice

Which of the following statements is true regarding home mortgages?

• A)There is a penalty for prepaying a home mortgage.
• B)An advantage of 15-year mortgages is that equity buildup is slower than with 30-year mortgages.
• C)It is generally wise to take a longer repayment period even if you plan to pay off the loan more quickly.
• D)More total interest is paid with a shorter mortgage repayment time.

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Definitions:

Normal Good

A type of good for which demand increases when consumer income rises, and decreases when consumer income decreases.

Rental Price

The cost associated with renting a property, such as an apartment or a car.

Normal Good

A type of good for which demand increases as the income of individuals or the economy increases.

Income

Payments obtained regularly from employment or investment returns.