The Two Primary Advantages of a 15-Year Mortgage Over a 30-Year

question 64

Multiple Choice

The two primary advantages of a 15-year mortgage over a 30-year mortgage are

• A)lower payments and prepayment privileges.
• B)lower interest rate and lesser interest charges over the life of the loan.
• C)greater financial flexibility and no prepayment penalties.
• D)easier qualification criteria and more affordable initially.
• E)none of the above.

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Definitions:

R

Symbol commonly used to represent resistance in an electrical circuit.

Reactive Power

The portion of electricity that oscillates between the source and load, essential for maintaining voltage levels in AC power systems but not converted into usable work.

Phase Angle Shift

See phase shift.

RC Parallel Circuit

A circuit configuration consisting of a resistor (R) and capacitor (C) connected alongside each other, sharing the same two nodes.