9
QuizMultiple Choice

Managing Financial Information

Question 9 • TX-Personal Financial Literacy and Economics

Many people prefer a fixed-rate mortgage because it

Answer
A
is variable.
B
might go down.
C
is predictable.
D
costs the least.

Explanation

A fixed-rate mortgage keeps the interest rate the same over the life of the loan, so borrowers can predict their regular principal-and-interest payments. It is not necessarily the least expensive, and its rate does not vary with market changes.

AI-written and checked against the verified answer.

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