Which of the Following Are True of Mortgage Interest Rates

question 67

Multiple Choice

Which of the following are true of mortgage interest rates?

• A) Interest rates on mortgage loans are determined by three factors: current long-term market rates, the term of the mortgage, and the number of discount points paid.
• B) Mortgage interest rates tend to track along with Treasury bond rates.
• C) The interest rate on 15-year mortgages is lower than the rate on 30-year mortgages, all else the same.
• D) All of the above are true.
• E) Only A and B of the above are true.

Calculate the periodic payments for deferred annuities following a period of deferral.

Understand the impact of compounding frequency on the growth of investments and savings.

Calculate the required initial contributions to achieve a specific financial goal within a given time frame.

Assess the financial feasibility and cost of purchasing indexed annuities with varying compounding rates.

---

Definitions:

Ecologically Adaptable

The ability of an organism to adjust and survive in different environmental conditions.

Core Features

The essential or most important characteristics that define a particular entity, concept, or system.

Mixed Farming

An agricultural approach that involves the raising of both crops and livestock on the same farm area.