Question

Financial Algebra - Mortgage help!

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

Answer choices:

Fixed rate only

Fixed rate and balloon only

Fixed rate and adjustable rate only

Fixed rate, adjustable rate, and balloon

Answer 1

all mortgages will have fixed payment...

Answer 2

So, option A then?

Answer 3

option D

Answer 4

Okay got it (: Thanks!

Answer 5

plesaure