Assume that a borrower has a choice between two comparable fixed-rate mortgage loans with the same interest rate, but different mortgage terms, one being a 30-year mortgage and the other a 15-year mortgage. Under financially unconstrained circumstances, which of the following statements best describes the borrower's preference?
A) The borrower would prefer the 30-year mortgage.
B) The borrower would prefer the 15-year mortgage.
C) The borrower would be indifferent between the two mortgages.
D) The borrower is unable to compare mortgage loans of two different maturities.
Correct Answer:
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