Which of the following is true about fixed and adjustable-rate mortgages?*1 pointFixed-rate mortgages have a constant payment every month, but an interest rate that increases during the term of the loanThey work the same way but are called different names depending if they come from a bank or a credit unionFixed-rate mortgages have a fixed interest rate for a short period, but then the interest rate fluctuates, which can lead to higher or lower interest rates for the homeownerAdjustable-rate mortgages have a fixed interest rate for a short period, but then the interest rate fluctuates, which can lead to higher or lower interest rates for the homeowner

If a Mortgage requires fixed payments every month for 15 yrs, which of the following is true?Group of answer choicesThe amount of interest paid each month increases over timeEarly payments contained the most interest, while later payments contain more principalThe same amount of principal is repaid with every paymentThe percentage of the payment going to interest goes up over time

For an adjustable-rate mortgage, how often can the interest rate change?*BiannuallyAnnuallyMonthlyIt varies based on the loan terms

One advantage of a variable interest rate over a fixed interest rate is that a variable rate:A.is often lower initially.B.offers borrowers more flexible terms.C.increases when the market rate increases.D.can be used for large purchases.

What is not a benefit of a fixed interest rate?

An interest rate that will not change over the term of the loan is known as a(n) _____.A.variable interest rateB.annual percentage rateC.compound interest rateD.fixed interest rateSUBMITarrow_backPREVIOUS