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Mortgage Payments: Suppose Mr. and Mrs. Klein want to purchase a home for $600,000. They are prepared to put $120,000 down and borrow the rest.
Mortgage Payments:
Suppose Mr. and Mrs. Klein want to purchase a home for $600,000. They are prepared to put $120,000 down and borrow the rest.
The Kleins know that, ceteris paribus, the amount of each mortgage payment will ____ (decrease/increase/not change) if loan amount decreases. The Kleins should also know that if they sold the house in just a few years, they will see that their mortgage balance has ____ (increased significantly/not decreased by much/decreased significantly/ has slightly increased).
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