This can't be real? The only one that i could see the average person NOT getting right the bond question, everything else is basic math....
Six for Six here! The questions were really basic. I believe I would have aced it back when I was in middle school and I have a Hawaii public school education (my middle school was Kailua intermediate)Mike
"A 15-year mortgage typically requires higher monthly payments than a 30-year mortgage but the total interest over the life of the loan will be less."This certainly seems to depend on what kind of interest rate I could get on either loan.6 out of 6 though.
Quote from: iowajes on August 26, 2016, 12:13:23 PM"A 15-year mortgage typically requires higher monthly payments than a 30-year mortgage but the total interest over the life of the loan will be less."This certainly seems to depend on what kind of interest rate I could get on either loan.6 out of 6 though.What's realistic situation where a 15 year loan would be cheaper than a 30 year loan?
Quote from: v8rx7guy on August 26, 2016, 12:26:02 PMQuote from: iowajes on August 26, 2016, 12:13:23 PM"A 15-year mortgage typically requires higher monthly payments than a 30-year mortgage but the total interest over the life of the loan will be less."This certainly seems to depend on what kind of interest rate I could get on either loan.6 out of 6 though.What's realistic situation where a 15 year loan would be cheaper than a 30 year loan?Two different people with vastly different credit taking them out? A 15-year car loan (don't think we are quite up to those yet...but the fact that you can get 8 years is insane) vs. a 30-year mortgage? The scenario laid out says NOTHING about what these loans are for, who is taking them out.
Quote from: iowajes on August 26, 2016, 12:28:15 PMQuote from: v8rx7guy on August 26, 2016, 12:26:02 PMQuote from: iowajes on August 26, 2016, 12:13:23 PM"A 15-year mortgage typically requires higher monthly payments than a 30-year mortgage but the total interest over the life of the loan will be less."This certainly seems to depend on what kind of interest rate I could get on either loan.6 out of 6 though.What's realistic situation where a 15 year loan would be cheaper than a 30 year loan?Two different people with vastly different credit taking them out? A 15-year car loan (don't think we are quite up to those yet...but the fact that you can get 8 years is insane) vs. a 30-year mortgage? The scenario laid out says NOTHING about what these loans are for, who is taking them out.Loans for things other than real estate are not typically called "mortgages."
Quote from: Jack on August 26, 2016, 12:30:51 PMQuote from: iowajes on August 26, 2016, 12:28:15 PMQuote from: v8rx7guy on August 26, 2016, 12:26:02 PMQuote from: iowajes on August 26, 2016, 12:13:23 PM"A 15-year mortgage typically requires higher monthly payments than a 30-year mortgage but the total interest over the life of the loan will be less."This certainly seems to depend on what kind of interest rate I could get on either loan.6 out of 6 though.What's realistic situation where a 15 year loan would be cheaper than a 30 year loan?Two different people with vastly different credit taking them out? A 15-year car loan (don't think we are quite up to those yet...but the fact that you can get 8 years is insane) vs. a 30-year mortgage? The scenario laid out says NOTHING about what these loans are for, who is taking them out.Loans for things other than real estate are not typically called "mortgages."That's true, for some reason I was thinking it just said loan and didn't read back. So let's just stick with the first thing I wrote. Two people with very different credit will be offered different interest rates.Or how about - mortgages granted in two different years? When I look back at our old house's 15 year loan, it's insane what a "good rate" was then.Or mortgages of two different sizes. A 15-year loan on a more expensive house will have more interest than a 30-year loan on a much less expensive one.
Quote from: iowajes on August 26, 2016, 12:34:52 PMQuote from: Jack on August 26, 2016, 12:30:51 PMQuote from: iowajes on August 26, 2016, 12:28:15 PMQuote from: v8rx7guy on August 26, 2016, 12:26:02 PMQuote from: iowajes on August 26, 2016, 12:13:23 PM"A 15-year mortgage typically requires higher monthly payments than a 30-year mortgage but the total interest over the life of the loan will be less."This certainly seems to depend on what kind of interest rate I could get on either loan.6 out of 6 though.What's realistic situation where a 15 year loan would be cheaper than a 30 year loan?Two different people with vastly different credit taking them out? A 15-year car loan (don't think we are quite up to those yet...but the fact that you can get 8 years is insane) vs. a 30-year mortgage? The scenario laid out says NOTHING about what these loans are for, who is taking them out.Loans for things other than real estate are not typically called "mortgages."That's true, for some reason I was thinking it just said loan and didn't read back. So let's just stick with the first thing I wrote. Two people with very different credit will be offered different interest rates.Or how about - mortgages granted in two different years? When I look back at our old house's 15 year loan, it's insane what a "good rate" was then.Or mortgages of two different sizes. A 15-year loan on a more expensive house will have more interest than a 30-year loan on a much less expensive one.I think it's pretty obviously implied that the only difference between the loans is their term length, since that's the only characteristic mentioned. It also even says "typically" in the beginning because I'm sure out there somewhere there's an anomaly.
Quote from: ooeei on August 26, 2016, 12:40:22 PMQuote from: iowajes on August 26, 2016, 12:34:52 PMQuote from: Jack on August 26, 2016, 12:30:51 PMQuote from: iowajes on August 26, 2016, 12:28:15 PMQuote from: v8rx7guy on August 26, 2016, 12:26:02 PMQuote from: iowajes on August 26, 2016, 12:13:23 PM"A 15-year mortgage typically requires higher monthly payments than a 30-year mortgage but the total interest over the life of the loan will be less."This certainly seems to depend on what kind of interest rate I could get on either loan.6 out of 6 though.What's realistic situation where a 15 year loan would be cheaper than a 30 year loan?Two different people with vastly different credit taking them out? A 15-year car loan (don't think we are quite up to those yet...but the fact that you can get 8 years is insane) vs. a 30-year mortgage? The scenario laid out says NOTHING about what these loans are for, who is taking them out.Loans for things other than real estate are not typically called "mortgages."That's true, for some reason I was thinking it just said loan and didn't read back. So let's just stick with the first thing I wrote. Two people with very different credit will be offered different interest rates.Or how about - mortgages granted in two different years? When I look back at our old house's 15 year loan, it's insane what a "good rate" was then.Or mortgages of two different sizes. A 15-year loan on a more expensive house will have more interest than a 30-year loan on a much less expensive one.I think it's pretty obviously implied that the only difference between the loans is their term length, since that's the only characteristic mentioned. It also even says "typically" in the beginning because I'm sure out there somewhere there's an anomaly.Typically is only used to modify the payments, it doesn't modify the interest. If they used typically both times I'd agree the question is defensible.I've spent too much of my life guarding against lawsuits on ill-phrased test questions :)