Tara bought a condo. She paid 22% down and is going to make payments for 20...

Tara bought a condo. She paid 22% down and is going to make payments for 20 years. She locked in the rate for five years. Which of the following statements is not true?
1. The interest rate cannot change for five years.
2. The way she has set this up, she will pay off the entire loan in 20 years.
3. The amortization period is five years.
4. The term is five years.

Solutions

Expert Solution

Option d is correct option. The term is five years is not true because the term of the loan is 20 years and not 5 years.

Option a, b and c are incorrect option as the statements are true.

jeff jeffy answered 2 years ago

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