Respuesta :
The interest rate is the biggest factor.
Determining the price of a mortgage is different from determining the price of the home. A mortgage is a loan, it is a debt that is owed for ownership of the house. The price of the mortgage is its interest rate, the same way the price of a credit card is the interest that you pay on it.
The principle that you pay on a mortgage is the amount that you are paying for the house. The interest is the price you pay for the mortgage, for the benefit of owning the home before having paid for it.
Determining the price of a mortgage is different from determining the price of the home. A mortgage is a loan, it is a debt that is owed for ownership of the house. The price of the mortgage is its interest rate, the same way the price of a credit card is the interest that you pay on it.
The principle that you pay on a mortgage is the amount that you are paying for the house. The interest is the price you pay for the mortgage, for the benefit of owning the home before having paid for it.
The option C is correct. The biggest factor in determining the price of a mortgage is the interest rate.
Further Explanation:
Mortgage means the loan raised to finance the high amount of things by the individual or corporations. The borrower has to pay the fixed amount of installment for taking the loan. The loan can be taken to finance a car, house, high-value machinery and many other things. The total cost of the income, the down payment, and the interest rate affect the price of a mortgage.
Justification for the correct and incorrect answer:
A.
The total cost of the home: This option is incorrect.
The total cost of the home is the price of the home in which the borrower will purchase the home. It has an impact on the price of a mortgage, as the amount depends on the cost of the home. This is not the biggest factor.
B.
The down payment: This option is incorrect.
The down payment is the amount which the borrower has to pay before starting the installment. If the swdown payment is more, the price of the mortgage is less. But this is not the biggest factor.
C.
The interest rate: This option is correct.
Interest rate is the rate that charge on the amount of mortgage, the borrower has to pay. If the interest rate is high, the borrower has to pay more amount of mortgage. If the interest rate is low, the borrower has to pay less amount of mortgage. This is the biggest factor in determining the price of the mortgage.
D.
The lender: This option is incorrect.
The lender is the person who provides the money to the borrower for getting the interest rate. This does not affect the price of the mortgage.
Learn more:
1. Learn more about a mortgage payment
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2. Learn more about interest value
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3. Learn more about root capital
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Answer details:
Grade: Middle School
Subject: Business
Chapter: Mortgage
Keywords: biggest factor, determining, price of a mortgage, interest rate, total cost of the home, down payment, impact, depends, finance, high-value things, car, home, high-value machinery.
