Which of the following would increase the equity in a home at a faster rate?
A)Making a down payment of 10 percent instead of 20 percent
B)Obtaining a mortgage interest rate of 9 percent instead of 8 percent
C)Obtaining a 15-year mortgage instead of a 30-year mortgage
D)Making larger deposits to the escrow account
E)Obtaining an interest-only mortgage

Question

Quizplus · Accepted Answer

Obtaining a 15-year mortgage instead of a 30-year mortgage increases equity faster because more of each payment goes towards the principal balance, reducing the amount owed on the home more quickly compared to a 30-year mortgage.

Which of the Following Would Increase the Equity in a Home