Which of the following statements is true? A. A 30-year fixed mortgage will always result in the lowest payment.
B. You must have at least a 20% down payment to get a competitive interest rate.
C. The lower your interest rate is, the lower your monthly payments are.
D. The faster you pay off your mortgage, the lower your monthly payments are.
The correct answer is C. The lower your interest rate is, the lower your monthly payments are.
Explanation: When you secure a lower interest rate on a mortgage, the total amount of interest you pay over the life of the loan decreases, which in turn reduces your monthly payment amount. This is because the monthly payment is calculated based on both the principal amount borrowed and the interest charged. The other statements either contain misconceptions or are not universally true. If you have more questions or need further clarification, feel free to ask!