Question

(Mortgage Loans LC)

A bank offers three mortgages shown:

Option 1: Fixed rate mortgage at 4% for 15 years

Option 2: Adjustable rate mortgage at 2.95% for 15 years with terms 6/1 and a cap of 2/5

Option 3: Balloon mortgage at 5% with terms 15/5

Which mortgage(s) will have fixed payments for at least the first 6 years?

Fixed rate only
Fixed rate and balloon only
Fixed rate and adjustable rate only
Fixed rate, adjustable rate, and balloon

Answer 1

Im to stupid to get this :l

Answer 2

i got friends helping

Answer 3

Option 1: A fixed rate mortgage of 4% for 15 years will have fixed payments for the whole duration, including the first six years.

Option 2: Adjustable rate mortgage at 2.95% for 15 years with terms of 6/1, which implies that the interest rate is fixed for the first six years and then changes every year after. This option will similarly have set payments for the first six years.

Option 3: A balloon mortgage at 5% with conditions of 15/5 requires the borrower to make regular payments for 5 years and then pay off the remaining balance in a lump sum. As a result, there will be no set payments for the first six years under this option.

So, the correct options are option 1 and 2 (fixed rate and adjustable rate.)

Answer 4

it cant be two tho

Answer 5

nvm im stupied

Answer 6

It's C

Answer 7

yeah i got that after i actually read it lol

Answer 8

lmao

Answer 9

and my parents locked me in a room and made me study all day

Answer 10

(joke)