Final answer:
Two loan amortisation patterns for constant payment mortgage loans are the level amortization and graduated-payment mortgage. A homeowner with an adjustable-rate mortgage would likely benefit from a decrease in interest rates if inflation falls unexpectedly by 3%.
Step-by-step explanation:
List two loan amortisation patterns used with constant payment mortgage loans. The first pattern is the standard or level amortization, where payments are consistent throughout the term of the loan, typically comprising both principle and interest components. As time progresses, the interest portion decreases while the principal portion increases. The second pattern is the graduated-payment mortgage, which starts with lower payments that increase over time, following a predetermined schedule or percentage.
If inflation falls unexpectedly by 3%, a homeowner with an adjustable-rate mortgage (ARM) is likely to experience a decrease in the interest rate they are charged. This is due to ARMs being linked to market interest rates, which often decrease when inflation falls. Lower interest rates in turn reduce the homeowner's periodic payments, benefiting the borrower.