Which of the following mortgage scenarios will benefit the homeowner the most?
A) adjustable rate mortgage when interest rate increases.
B) fixed rate mortgage when interest rates falls.
C) fixed rate mortgage when interest rate rises.
D) None of these options, as the banker's interest will always be protected.

Question

Quizplus · Accepted Answer

A fixed rate mortgage when interest rates rise will benefit the homeowner the most because it means their interest rate and monthly payment will remain the same despite the increase in interest rates. This will save them money in the long run compared to an adjustable rate mortgage where their payments could increase significantly.

Which of the Following Mortgage Scenarios Will Benefit the Homeowner