Finance
Which type of mortgage has an interest rate that remains the same for the entire loan term?
AAdjustable-rate mortgage (ARM)
BFixed-rate mortgage✓ Correct
CBalloon mortgage
DInterest-only mortgage
Explanation
A fixed-rate mortgage maintains the same interest rate and monthly principal-and-interest payment for the entire loan term, providing payment certainty for the borrower.
Related Massachusetts Finance Questions
- A buyer's debt-to-income (DTI) ratio is calculated as:
- Under the Massachusetts Consumer Credit Cost Disclosure Act, lenders must disclose the Annual Percentage Rate (APR). The APR is higher than the note rate because:
- A MassHousing loan is distinguished from a conventional loan primarily because:
- A Massachusetts first-time homebuyer uses a 'down payment assistance' loan from a non-profit. This loan is often structured as a:
- A Massachusetts VA loan differs from a conventional loan in that:
- In Massachusetts, a 'negative amortization' loan is one where:
- In Massachusetts, which party typically pays the deed excise tax?
- The debt-to-income ratio (DTI) used by Massachusetts mortgage lenders measures:
Practice More Massachusetts Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Massachusetts Quiz →