Finance
A Wyoming buyer obtains a 15-year mortgage instead of a 30-year mortgage for the same loan amount and rate. Compared to the 30-year mortgage, the 15-year mortgage will have:
ALower monthly payments and less total interest paid
BHigher monthly payments but significantly less total interest paid✓ Correct
CThe same monthly payment but shorter term
DHigher monthly payments and more total interest paid
Explanation
A 15-year mortgage has higher monthly payments because the loan is paid off in half the time, but it results in dramatically less total interest paid over the life of the loan. The shorter amortization period significantly reduces lifetime interest costs.
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