Which of the following statements is true.
i. the higher your interest rate, the higher your monthly mortgage payments.
ii. the higher your down payment, the higher your monthly mortgage payments.
iii. a 30 year mortgage fixed at 6% will have smaller payments that a 20 year mortgage fixed at 6%.
a. i only
b. ii only
c. i, ii, and iii
d. i and iii

The answer is :  d. I and III

Explanation:

I- The interest rate on a mortgage has a direct impact on the size of a mortgage payment: Higher interest rates mean higher mortgage payments.

While both loan types have similar interest rate profiles, the 20-year loan typically offers a lower rate to the 30-year loan. The spreads change over time, but the 20-year is typically about a quarter a percent lower than the 30-year.  

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