Answered

Discover the answers to your questions at Westonci.ca, where experts share their knowledge and insights with you. Get the answers you need quickly and accurately from a dedicated community of experts on our Q&A platform. Join our platform to connect with experts ready to provide precise answers to your questions in different areas.

Which of the following is true about fixed and adjustable-rate mortgages?

A. Fixed-rate mortgages have a constant interest rate throughout the life of the loan.
B. Adjustable-rate mortgages have interest rates that may change periodically.
C. Fixed-rate mortgages typically offer more predictability in monthly payments.
D. Adjustable-rate mortgages might start with a lower initial rate compared to fixed-rate mortgages.

Sagot :

GinnyAnswer

Final answer:

Fixed-rate mortgages have a constant interest rate, while adjustable-rate mortgages fluctuate with market rates. A decrease in inflation may lead to a lower interest rate for homeowners with adjustable-rate mortgages.


Explanation:

Fixed-rate mortgages maintain the same interest rate throughout the loan term, while adjustable-rate mortgages change based on market rates. If inflation decreases by 3%, a homeowner with an adjustable-rate mortgage may see a reduction in their interest rate to align with inflation, keeping the real interest rate constant.


Learn more about mortgage types here:

https://brainly.com/question/32629331


Thank you for trusting us with your questions. We're here to help you find accurate answers quickly and efficiently. Thank you for your visit. We're committed to providing you with the best information available. Return anytime for more. Get the answers you need at Westonci.ca. Stay informed with our latest expert advice.