A bank offers three mortgages shown. Which mortgage(s) will have fixed payments for at least the first 5 years?

Fixed rate mortgage at 5% for 20 years
Adjustable rate mortgage at 3% for 20 years with terms 4/2 and a cap of 3/8
Balloon mortgage at 4% with terms 20/4
Fixed rate only

Fixed rate and balloon only

Fixed rate and adjustable rate only

Question

A bank offers three mortgages shown. Which mortgage(s) will have fixed payments for at least the first 5 years? 


Fixed rate mortgage at 5% for 20 years
Adjustable rate mortgage at 3% for 20 years with terms 4/2 and a cap of 3/8
Balloon mortgage at 4% with terms 20/4
 Fixed rate only

 Fixed rate and balloon only

 Fixed rate and adjustable rate only <---- My choice 

 Fixed rate, adjustable rate, and balloon

amistre64 · Answer

whats your reasoning for that one?