For Someone Who Has a Seven-Year, Fixed Rate $300 000

question 67

Multiple Choice

For someone who has a seven-year, fixed rate $300 000 mortgage, at an interest rate of 6.3 percent, which mortgage would be the best choice for increasing your net worth?

• A)25-year amortization with semi-monthly payments
• B)30-year amortization with accelerated biweekly payments
• C)30-year amortization with weekly payments
• D)25-year amortization with weekly payments

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Definitions:

Statute of Frauds

A legal concept that requires certain types of contracts to be executed in writing and signed by all parties involved, to be enforceable.

Oral Contract

An oral contract is an agreement between two or more parties that is spoken and not written down, yet is legally binding.

Convey the Deed

The act of transferring title of real property from one person or entity to another through a legal document.

Parol Evidence Rule

A rule in contract law that prevents parties from presenting extrinsic evidence of prior or contemporaneous agreements to alter or contradict the terms of a written contract.