Question

Which of the following statements is true? a. A 30 year fixed mortgage will always result in the lowest payment. b. You must have at least a 20% down payment to get a competitive interest rate. c. The lower your interest rate is, the lower your monthly payments are. d. The faster you pay off your mortgage, the lower your monthly payments are.

Answer 1

$\fbox{\text{Option c}}$ is correct that is lower your interest rate is, the lower your monthly payments.

Further explanation:

A 30 year fixed mortgage will always result in the lowest payment is not correct as the payment depends on the interest rate and the amount of loan if the interest rate is higher than the Therefore, Option a is not correct.

You must have at least a 20% down payment to get a competitive interest rate is not correct as the down payment effect only the payment.

Therefore, Option b is not correct.

The lower your interest rate is, the lower your monthly payment is correct as the interest rate is lower we have to pay less interest and lower monthly payment.

Therefore, Option c is correct.

The faster you pay off your mortgage, the lower your monthly payments are is not correct as we pay faster the monthly payment must be high to pay the whole mortgage.

Therefore, Option d is not correct.

The correct $\fbox{\text{Option c}}$ that lower your interest rate is, the lower your monthly payment.

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Answer details:

Grade: High school

Subject: Mathematics

Chapter: Mortgage

Keywords: mortgage, monthly payment, interest rate, lower interest rate, high interest rate, faster pay off, lowest payment, down payment, installment, competitive interest rate, loan.

Answer 2

Answer:

The correct answer is option C.

Step-by-step explanation:

The lower your interest rate is, the lower your monthly payments are. This is true. The interest rate is directly proportional to monthly or yearly payments. If the rates are high, the installments are high and if the rate of interest is low, the installments are lower.