The two primary advantages of a 15-year mortgage over a 30-year mortgage are
A)lower payments and prepayment privileges.
B)lower interest rate and lesser interest charges over the life of the loan.
C)greater financial flexibility and no prepayment penalties.
D)easier qualification criteria and more affordable initially.
E)none of the above.

Question

Quizplus · Accepted Answer

The two primary advantages of a 15-year mortgage over a 30-year mortgage are lower interest rates and lesser interest charges over the life of the loan. This translates to significant savings in interest payments. While the payments may be higher in a 15-year mortgage, the overall savings in interest make it a more financially advantageous option. Additionally, 15-year mortgages typically have lower interest rates, which also results in savings over the life of the loan. Prepayment privileges, financial flexibility, and qualification criteria are not necessarily advantages unique to a 15-year mortgage compared to a 30-year mortgage.

The Two Primary Advantages of a 15-Year Mortgage Over a 30-Year