Mortgage prepayments are generally a(n)________ to the mortgage borrower and a(n)________ to the mortgage investor.

Question

Quizplus · Accepted Answer

Mortgage prepayments can be an advantage to the mortgage borrower as it helps reduce the overall interest paid on the mortgage and speeds up the repayment process. However, for the mortgage investor, prepayments can be a disadvantage as they lose out on potential interest income that could have been earned over the life of the mortgage. Therefore, choice B is the correct answer as it identifies prepayments as both an advantage for the borrower and a disadvantage for the investor.

Mortgage Prepayments Are Generally A(n)________ to the Mortgage Borrower and A(n)________

Mortgage Prepayments Are Generally A(n) to the Mortgage Borrower and A(n)