Finance
A Louisiana homebuyer obtains a 30-year fixed-rate mortgage. 'Fixed-rate' means:
AThe monthly payment never changes even if escrow amounts change
BThe interest rate remains constant for the entire loan term, providing predictable P&I payments✓ Correct
CThe rate is fixed by the federal government
DThe down payment is fixed at 20% permanently
Explanation
A fixed-rate mortgage has an interest rate that remains constant for the full loan term, resulting in stable, predictable principal and interest payments. Note: the total payment may change if property taxes or insurance in escrow change.
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