Given a fully amortized mortgage, which of the following is true? A higher inter

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

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