Olivia applied for a mortgage with a fixed rate. What does this mean? A. The payment remains the same for the duration of the lo
an. B. The loan is for a home in the city instead of a rural area. C. The house is less than 2,000 square feet. D. The interest rate can be changed every year.
A. The payment remains same for the duration of the loan.
Explanation:
Fixed rate mortgage is the type of loan in which the interest amount is usually same for the entire duration of the loan. The interest amount does not varies and a fixed rate is applied in the loan. The loan borrowed can be used for any purpose if there is no special covenant agreed at the time of loan agreement signing.
