Finance
What is the primary advantage of a 15-year mortgage compared to a 30-year mortgage at the same interest rate?
ALower monthly payment
BSmaller total interest paid over the life of the loan✓ Correct
CNo prepayment penalty
DGreater loan amount available
Explanation
A 15-year mortgage builds equity faster and results in significantly less total interest paid because the loan is repaid in half the time. However, the monthly payments are higher than a 30-year mortgage for the same loan amount.
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