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What would happen to a monthly payment if the interest rate decreased

User Pavan Jaju
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2 Answers

5 votes

Answer:

The monthly payment will consequently decrease

Step-by-step explanation

If the interest rate charged say on a mortgage loan is decreased, then the total repayments due will as a consequence decline provided the repayment term remains unaltered. Nevertheless, a decline in total repayments due amounts to a decrease in the monthly or annual repayments

User Coretechie
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4 votes

Answer:

The monthly payment will consequently decrease

Explanation:

If the interest rate charged say on a mortgage loan is decreased, then the total repayments due will as a consequence decline provided the repayment term remains unaltered. Nevertheless, a decline in total repayments due amounts to a decrease in the monthly or annual repayments

User Irfandar
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6.1k points