Mortgages and Home Ownership

Question 1

Many people prefer a fixed-rate mortgage because it

Revolt · Accepted Answer

is predictable.

Question 2

Homeowners typically pay property taxes to

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help finance state and local governments.

Question 3

The graph shows changes in interest rates since 1975.

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Interest rates can go up and down.

Question 4

Borrowers choosing an adjustable-rate mortgage

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often pay a lower interest rate during the first few years.

Question 5

What impact might an economic downturn have on a borrower’s fixed-rate mortgage?

Revolt · Accepted Answer

It has no impact because a fixed-rate mortgage cannot change.

Question 6

The chart shows the costs associated with the purchase of a new home.

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There are additional fees and costs involved in taking out a mortgage.

Question 7

A borrower with bad credit is likely to be charged

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a high interest rate.

Question 8

The graph shows the average price of homes in the United States from 2009 to 2014.

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Rising home prices in recent years means that more people will need to take out mortgages.

Question 9

An adjustable-rate mortgage is one that

Revolt · Accepted Answer

can change.

Mortgages and Home Ownership Answers