Which combination of factors would result in the lowest monthly mortgage payment?
A. Big down payment, a longer term loan, and low interest rate
B. Small down payment, a shorter term loan, and small interest rate
C. Small down payment, a shorter term loan, and high interest rate
D. Big down payment, a shorter term loan, and high interest rate
Answer Explanation for Question: Which combination of factors would result in the lowest monthly mortgage payment?
There are four things you can do to reduce your mortgage payment each month. Refinancing is the first option, taking into account the age of the loan and current interest rate. The second one is stopping PMI payments. The last two methods involve a standard loan extension and protesting the tax assessment. Various experts have approved these ways to lower mortgage payments.
Mortgages are an excellent example of checks and balances, representing the interests of both the owner and the lender. Each of these methods has certain characteristics and application methods. Extending the loan term is the easiest and most common way to achieve the lowest monthly mortgage payment. The likelihood of an increase in interest rates is high in connection with this. There is only an interaction with the tax assessment in cases of revaluation, accident, or change in taxation elements.