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Iteru [2.4K]
3 years ago
12

What impact might an economic downturn have on a borrower’s fixed-rate mortgage?

Social Studies
2 answers:
Tasya [4]3 years ago
6 1

just took the quiz on edgy & it's NOT A... good luck.

Rashid [163]3 years ago
6 0

It is likely that a borrower with a fixed-rate mortgage will find themselves paying a higher mortgage rate that what will soon be offered.

One of the cardinal ways that a Central Bank responds to an economic downturn is by lowering the interest rate.

Unlike a borrow with an adjustable rate, whose rate can go up or down, a borrower with a fixed rate mortgage is locked in. SO, they benefit if the rates go up but lose out if they go down.

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