Given a fully amortized mortgage, which of the following is true? A higher inter
ID: 2645166 • Letter: G
Question
Given a fully amortized mortgage, which of the following is true?
A higher interest rate results in lower periodic payments.
A longer term results in larger periodic payments.
As the loan term increases, the amortization rate decreases.
Higher interest rates result in higher amortization rates.
A higher interest rate results in lower periodic payments.
A longer term results in larger periodic payments.
As the loan term increases, the amortization rate decreases.
Higher interest rates result in higher amortization rates.
Explanation / Answer
A higher interest rate results in lower periodic payments. FALSE A longer term results in larger periodic payments. TRUE As the loan term increases, the amortization rate decreases. TRUE Higher interest rates result in higher amortization rates. TRUE