Finance
A Maryland borrower takes a 15-year mortgage instead of a 30-year mortgage at the same loan amount and rate. Compared to the 30-year loan, the 15-year loan has:
ALower monthly payments and less total interest paid
BHigher monthly payments but less total interest paid over the life of the loan✓ Correct
CThe same monthly payment but different total interest
DLower monthly payments and more total interest
Explanation
A 15-year mortgage has higher monthly payments because principal is repaid faster, but the total interest paid over the loan's life is significantly less than a 30-year mortgage.
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