Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Personal Finance

Authors: Jane King, Mary Carey

2nd Edition

0198748779, 9780198748779

More Books

Students also viewed these Finance questions

Question

1. Give occasional take-home tests.

Answered: 1 week ago