Mortgage Options Quiz

According to John P. Roland, when is it recommended to choose an adjustable-rate mortgage (ARM)?

• If you plan to move before the rate resets

• If you plan to stay in your home longer

• If you want a lower initial rate

What is a benefit of a fixed-rate mortgage?

• You can get a lower initial rate

• You can keep your rate for the entire life of your loan

• You can get a lower rate if rates decrease later

What makes it easier to budget with a fixed-rate mortgage?

• Predictable payments

• Lower interest rates

• Flexible payment options

What is a benefit of an adjustable-rate mortgage (ARM)?

• You can keep your rate for the entire life of your loan

• You can have more budget flexibility

• You can get a lower initial rate

When are initial ARM rates typically lower than fixed rates?

• When you plan to move or refinance before the initial rate period ends

• When you want a fixed interest rate

• When you want to keep your rate for the entire life of your loan

What can you do with the money saved from a lower interest rate on an ARM?

• Pay down debt or contribute to your retirement fund

• Keep it as savings for emergencies

• Invest in the stock market

What could happen to an ARM's rate once the initial rate period is up?

• It could increase

• It could stay the same

• It could decrease

What is a disadvantage of an adjustable-rate mortgage (ARM)?

• You can't benefit from a lower initial rate

• Your rate will always be higher than a fixed rate

• Your rate could increase later

What could change over the years with a fixed-rate mortgage?

• Your interest rate

• Your loan term

• Your property taxes

What is the better choice if you plan to stay in your home longer?

• Fixed-rate mortgage

• Adjustable-rate mortgage (ARM)

• Both options are equally good