Question: Two loans have the same interest rate and maturity. Loan A has a 1 5 - year amortization rate. Loan B has a 3 0
Two loans have the same interest rate and maturity. Loan A has a year amortization rate. Loan B has a year amortization rate. In comparing these two loans from a borrower's perspective:
The advantage of Loan B is lower mosthly payments but its disadvanage is a higher balloon at matority.
The advantage of Loan A is lower monthly payments but its disadvantage is a higher balloon at maturity.
The advantage of Loaa A is lower monthly payments and lower balloon payment at maturity.
The advantage of Loas IB is lower moothly paousents and lower hallowe payment at maturity
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