Question

Which sentence summarizes the advantages of taking out a mortgage loan?

a.) Mortgages can be repaid over a long period of time.
b.) Mortgages can be quickly repaid in a short period of time.
c.) Mortgages are short-term commitments for inexpensive items.
d.) Mortgages have no risk of foreclosure.

Answer 1

Answer: a.) Mortgages can be repaid over a long period of time.

Instead of paying the money back all at once, it's beneficial to spread out the payments over 15 years or 30 years so that the monthly payments are small and manageable. Yes overall you'll pay more money than what you borrowed, but interest is involved with nearly every type of loan.