Mortgage payments are ____________ on a 15-year fixed-rate mortgage than on a 30-year fixed-rate mortgage, and ____________ is paid on a 15-year mortgage than on a 30-year mortgage; ceteris paribus.

Question

Quizplus · Accepted Answer

Mortgage payments are higher on a 15-year fixed-rate mortgage because the loan is paid off in a shorter period, resulting in larger monthly payments. However, less interest is paid over the life of the loan compared to a 30-year mortgage because the loan is paid off faster, reducing the total interest accrued.

Mortgage Payments Are ____________ on a 15-Year Fixed-Rate Mortgage Than