Which of the following will affect the size of your monthly mortgage payment?
A. The size of your down payment
B. The length of your mortgage
C. The purchase price of your house
D. All of the above
The Correct Answer for the given question is option D. All of the above
When it comes to mortgages, monthly payments are determined by a number of factors. These include the size of the loan, the interest rate, and the term of the loan.The size of the loan is perhaps the most obvious factor that affects monthly mortgage payments. A larger loan will have higher monthly payments than a smaller loan. Interest rates also play a role in determining monthly mortgage payments. A higher interest rate will result in higher monthly payments. The term of the loan also affects monthly mortgage payments. A longer loan term will have lower monthly payments than a shorter loan term.
All of these factors must be considered when determine how much your monthly mortgage payment will be. Size, interest rate, and term all play a role in calculating this important figure.
Answer Explanation for Question: Which of the following will affect the size of your monthly mortgage payment?
Mortgages are long-term loans used to buy a house. Paying interest to the lender is in addition to repaying the principal. Collateral is the home and its surrounding land. However, if you’re considering buying a home, you should know more than these generalities. Fixed costs are importantly a part of business, especially in regards to shutdowns.
A mortgage payment consists of both principal and interest. A down payment of less than 20% will require you to take out private mortgage insurance, which will increase your monthly payment. The payment may also include property taxes. While the principal balance is more favorable toward the borrower in the later portion of the loan, interest rate is higher in the early portion of the mortgage.
Putting down a lager down payment will boost equity in your home right away. Several factors influence the size and term of mortgage payments. Size refers to the amount that is borrowed, while term refers to how long it will take to pay it back.