106
QuizMultiple Choice

Topic Test

Question 106 • ****Spring 2026 Financial Math - MA2007 MQS21QXV

Which of the following statements is true?

Answer
A
A 30 year fixed mortgage will always result in the lowest payment.
B
You must have at least a 20% down payment to get a competitive interest rate.
C
The lower your interest rate is, the lower your monthly payments are.
D
The faster you pay off your mortgage, the lower your monthly payments are.

Explanation

For the same loan amount and repayment term, a lower interest rate means less interest accrues, so the required monthly payment is lower. A 30-year mortgage does not always have the lowest payment compared with longer terms, and you do not necessarily need 20% down to get a competitive rate. Paying a mortgage off faster generally requires higher, not lower, monthly payments.

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