As the amortization period of a mortgage increases, holding interest rates constant, the monthly payments will
A)stay the same.
B)increase.
C)decrease.
D)There is no connection between the amortization period and the size of the payment.

Question

Quizplus · Accepted Answer

As the amortization period increases, the total amount of interest paid over the life of the mortgage also increases. However, because the payments are spread out over a longer period of time, the monthly payment amount decreases.

As the Amortization Period of a Mortgage Increases, Holding Interest