Question

If Ted wants to buy a house and believes that interest rates will rise, he should __________.

a.) apply for a fixed-rate mortgage
b.) apply for an adjustable-rate mortgage
c.) use his credit card
d.) wait until a better time

Answer 1

A is correct because if he wants is interest rate to stay the same, he wants a fixed rate.

B is incorrect because the rate can change, thus it would increase.

C is incorrect because you cant buy a house on a credit card XD.

D is incorrect because there is no better time to buy then right before rates go up because then if you decide to sell, there is a higher ROI (Return on investment)