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11. List three pieces of information listed in a mortgage bill that you believe are importan
review when receiving the statement. Explain why you chose these three
areas.
"IGHLIGHT THE CORRECT ANSWER
EXIT TICKET
1. What causes the total amount of interest paid on a mortgage to be so much high
than on other types of debts?
a. The APR on a mortgage is typically between 20-30%, which is higher than for c
types of debt
b. The principal on a mortgage is high and the term is long
c. Borrowers typically delay making mortgage payments because their home ca
be repossessed for nonpayment
d. Homeownership is not very common in the US, so mortgages are priced high
because demand is so low



Answer :

GinnyAnswer

Final answer:

Mortgage interest rates, inflation, and market conditions impact borrowers and banks differently.


Explanation:

Mortgage Interest Rates vs. Inflation: When the mortgage interest rate is lower than the rate of inflation, it is better for a borrower as they essentially pay back the loan with cheaper dollars.

Banking Strategies: Banks benefit when they lend money during times of higher mortgage interest rates as they earn more on the loans given out compared to what they pay on deposits.

Impact of Market Conditions: In a scenario where interest rates have fallen, it becomes more advantageous for borrowers as they can secure loans at lower rates, while banks might find it less lucrative to lend at lower rates.


Learn more about Mortgage Interest Rates and Inflation here:

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