Which of the Following Is True of Mortgage Interest Rates

question 51

Multiple Choice

Which of the following is true of mortgage interest rates?

• A) Mortgage rates are closely tied to Treasury bond rates, but mortgage rates tend to stay below Treasury rates because mortgages are secured with collateral.
• B) Longer-term mortgages have higher interest rates than shorter-term mortgages.
• C) Interest rates are higher on mortgage loans on which lenders charge points.
• D) All of the above are true.
• E) Only A and B of the above are true.

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Definitions:

Ledger

A comprehensive set of accounts that records all financial transactions of a business, categorized by type.

Normal Balances

The side (debit or credit) on which increases to an account are recorded, depending on the type of account.

Total Assets

The sum of all assets owned by a company, reflected on the balance sheet, representing both current and non-current assets.

Cash Payment

The act of settling a debt or transaction by transferring money to another party.