Finance
A Montana home buyer is considering a 15-year versus a 30-year mortgage for the same loan amount. The 15-year mortgage will have:
ALower monthly payments but higher total interest
BHigher monthly payments but significantly less total interest paid over the life of the loan✓ Correct
CThe same total interest as the 30-year mortgage
DLower interest rate but the same total cost
Explanation
A 15-year mortgage has higher monthly payments than a 30-year mortgage for the same loan amount, but the loan is paid off in half the time, resulting in significantly less total interest paid over the life of the loan.
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