Finance
A Wisconsin buyer obtains a 15-year fixed-rate mortgage instead of a 30-year. Compared to the 30-year loan, the 15-year loan 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 monthly payments
DHigher total interest paid due to the shorter term
Explanation
A 15-year mortgage has higher monthly payments than a 30-year (because it's paid off in half the time), but significantly less total interest paid over the life of the loan because the balance is paid down much faster.
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