Question
Jack and Melissa have recently bought a house with the help of a mortgage loan from Davego Bank. The bank is charging interest on a
Jack and Melissa have recently bought a house with the help of a mortgage loan from Davego Bank. The bank is charging interest on a fixed basis.
However they also have their own DBR (Dave Base Rate) whichis its base rate. Jack and Melissa are supposed to pay a fixed interest rate of 3.57% on their mortgage. Which of the following is true?
A.The interest charged on this mortgage is going to remain the same
B.The interest charged on the mortgage can be changed if Jack and Melissa agree for the changes in advance
C The changes in DBR will not affect the interest charged until the base rate changes by more than 1.7%
D. The bank can change its base rate and that will result in a change in the interest rate charges on this mortgage
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