Purchase Solution

Fixed Rate Mortgage Payment

Not what you're looking for?

Ask Custom Question

Please help with the following problem.

Your family recently obtained a 30 (360 month) $100,000 fixed rate mortgage. Which of the following statements is most correct and why? (ignore taxes and transactions costs).

A. The remaining balance after 3 years will be $100,000 less the total amount of interest paid during the first 36 months.

B. The proportion of the monthly payment that goes toward repayment of principal will be higher ten years from now than it will be this year.

C. The monthly payment on the mortgage will steadily decline over time.

D. All of the statements above are correct.

E. None of the above statements are correct.

Purchase this Solution

Solution Summary

The solution explains the correct alternative in relation to fixed rate mortgage payment. It's based on the fact that a family obtained a 30 $100,000 fixed rate mortgage. This solution answers a multiple choice problem along with a brief explanation.

Solution Preview

Problem: Your family recently obtained a 30 (360 month) $100,000 fixed rate mortgage. Which of the following statements is most ...

Purchase this Solution


Free BrainMass Quizzes
Understanding the Accounting Equation

These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.

Basics of corporate finance

These questions will test you on your knowledge of finance.

Accounting: Statement of Cash flows

This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.

Introduction to Finance

This quiz test introductory finance topics.

Managing the Older Worker

This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce