Mortgage Agent Licensing Practice Exam · Question
Consider a situation where a mortgage agent is discussing a fixed-rate mortgage product with a client. What is a primary benefit of a fixed-rate mortgage that the agent should highlight?
A primary benefit of a fixed-rate mortgage, due to its static interest rate for the term, is that borrowers have predictable and consistent mortgage payments, w
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Question: Consider a situation where a mortgage agent is discussing a fixed-rate mortgage product with a client. What is a primary benefit of a fixed-rate mortgage that the agent should highlight?
Answer options:
- The interest rate will automatically decrease if benchmark rates fall. ✅ The borrower has predictable mortgage payments for the entire term.
- Prepayment penalties are never applicable.
- It offers unlimited prepayment privileges.
Correct answer: The borrower has predictable mortgage payments for the entire term.
Explanation: A primary benefit of a fixed-rate mortgage, due to its static interest rate for the term, is that borrowers have predictable and consistent mortgage payments, which helps with budgeting.
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Question explanations
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- When must a mortgage agent provide the borrower with certain disclosures regarding the proposed mortgage, part
- Michael and Jennifer are applying for a mortgage to purchase a home in Calgary for $700,000. Their combined gr
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