Question

aidan opts for a fixed - rate 30 - year mortgage instead of a fixed - rate 15 - year mortgage. what can he expect about his monthly payments?
they will be higher.
they will vary more often.
they will be lower.
they will remain the same

Explanation:

For a fixed - rate mortgage, the total loan amount is paid back over the loan term. A 30 - year mortgage has a longer term than a 15 - year mortgage. When we spread the same loan amount (assuming the same principal and interest rate) over more months (30 years = 360 months, 15 years = 180 months), the monthly payment amount will be lower. Fixed - rate mortgages have payments that do not vary, so the option about varying more often is incorrect. And since the term is longer, payments can't be higher or the same as a 15 - year mortgage.

Answer:

They will be lower.