Finance
A Kentucky buyer obtains a 15-year fixed mortgage of $200,000 at 5.5% interest. Compared to a 30-year mortgage at the same rate, the 15-year mortgage will:
AHave lower monthly payments but higher total interest
BHave higher monthly payments but lower total interest paid✓ Correct
CHave the same monthly payment with less amortization
DRequire a larger down payment under Kentucky law
Explanation
A 15-year mortgage has higher monthly payments because the loan is paid off in half the time, but the total interest paid over the life of the loan is significantly less than a 30-year mortgage.
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