Finance
What is the main advantage of a fixed-rate mortgage for a South Dakota homebuyer?
ALower initial interest rate than ARMs
BPredictable monthly payments throughout the loan term✓ Correct
CNo PMI requirement regardless of down payment
DAutomatic rate reduction when the prime rate falls
Explanation
Fixed-rate mortgages provide payment stability — the interest rate and principal-and-interest payment remain constant for the entire loan term, protecting borrowers from rate increases.
Related South Dakota Finance Questions
- In South Dakota, 'forbearance' in mortgage lending refers to:
- Which federal law requires lenders to provide a Loan Estimate to mortgage applicants within 3 business days of application?
- In South Dakota, a deed of trust differs from a mortgage in that:
- In South Dakota, a 'prepayment penalty' in a mortgage loan:
- The annual percentage rate (APR) disclosed in South Dakota mortgage transactions differs from the interest rate in that APR:
- In South Dakota, a 'loan modification' differs from a 'refinance' in that a loan modification:
- In South Dakota, which financial institution is specifically chartered to make mortgage loans for housing?
- In South Dakota, which of the following borrower profiles would most likely qualify for a USDA Rural Development loan?
Practice More South Dakota Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free South Dakota Quiz →