Finance
A West Virginia buyer is comparing a 15-year mortgage vs. a 30-year mortgage at the same interest rate. The 15-year mortgage will have:
ALower monthly payments and more total interest paid
BHigher monthly payments but less total interest paid over the life of the loan✓ Correct
CThe same total interest cost as the 30-year mortgage
DLower monthly payments and less total interest paid
Explanation
A 15-year mortgage has higher monthly payments than a 30-year mortgage (same loan amount, same rate) but significantly less total interest paid over the life of the loan because the principal is repaid much faster.
Related West Virginia Finance Questions
- A West Virginia property's loan-to-value (LTV) ratio is 80%. The purchase price is $200,000. The down payment would be:
- Private mortgage insurance (PMI) is typically required in West Virginia when:
- A West Virginia homebuyer who pays 'discount points' at closing is paying:
- The secondary mortgage market in West Virginia increases mortgage availability by:
- A West Virginia borrower obtains an adjustable-rate mortgage (ARM). The interest rate on an ARM is tied to:
- A 'balloon payment' mortgage in West Virginia is characterized by:
- A West Virginia buyer obtains a $250,000 FHA loan. What is the minimum down payment required?
- Under the Dodd-Frank Act, a 'Qualified Mortgage' (QM) in West Virginia may NOT include:
Practice More West Virginia Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free West Virginia Quiz →