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When buying a home and seeking a mortgage, borrowers typically are faced with choosing a 15 year or 30-year mortgage where the interest rate and

When buying a home and seeking a mortgage, borrowers typically are faced with choosing a 15 year or 30-year mortgage where the interest rate and monthly payment is fixed for the life of the loan, or a mortgage where interest and monthly payments can change as other rates change. Using the five core principals of money and banking, explain why the interest on fixed-rate loans has historically been higher.

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