Question

understanding mortgage terms
zaire chooses a fixed-rate 15-year mortgage instead of a fixed-rate 30-year mortgage. what is likely to be true about his monthly payments?
they will remain the same.
they will fluctuate more frequently
they will be higher
they will be lower.

Explanation:

In a fixed - rate mortgage, the total amount to be repaid (principal + interest) is spread over the loan term. A 15 - year mortgage has a shorter term than a 30 - year mortgage. When we spread the same total amount (assuming the same principal and interest rate, since it's fixed - rate) over a shorter period (15 years instead of 30 years), the monthly payment amount will be higher. Also, since it's a fixed - rate mortgage, the monthly payments do not fluctuate, so the option about more frequent fluctuations is incorrect. And they can't be the same or lower when the term is shorter.

Answer:

They will be higher.