Finance
In Minnesota, which of the following is a characteristic of a 15-year mortgage compared to a 30-year mortgage?
ALower monthly payments but higher total interest paid
BHigher monthly payments but less total interest paid and faster equity building✓ Correct
CThe same monthly payment with a shorter term
DNo difference in equity accumulation rate
Explanation
A 15-year mortgage has higher monthly payments than a 30-year mortgage but results in significantly less total interest paid over the life of the loan and builds equity much faster. Many Minnesota homebuyers choose 15-year mortgages to pay off their home faster, especially when planning to stay long-term.
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