Which of the following would increase the speed of equity growth for a homebuyer?
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 20-year mortgage instead of a 25-year mortgage
D)making larger deposits to the escrow account
E)making smaller deposit to the escrow account

Question

Quizplus · Accepted Answer

Obtaining a 20-year mortgage instead of a 25-year mortgage would increase the speed of equity growth as the borrower would pay off the loan faster, meaning more of the mortgage payments go towards reducing the principal balance and building equity.

Which of the Following Would Increase the Speed of Equity