Humber/Ontario Real Estate Course 4 Exam Practice

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Prepare for the Humber/Ontario Real Estate Course 4 Exam with our comprehensive practice tests. Study with flashcards and multiple-choice questions, complete with hints and detailed explanations. Achieve success on your real estate licensing journey!

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Which of the following is indicative of a fixed-rate mortgage?

The interest rate adjusts according to changes in market interest rates.
The interest rate remains the same throughout the life of the loan.
Monthly payments may fluctuate based on changes in interest rates.
Loan terms can be renegotiated after a set period of time.

The correct answer is: The interest rate remains the same throughout the life of the loan.

A fixed-rate mortgage is characterized by having an interest rate that remains the same throughout the life of the loan. This means that the borrower's monthly payments will also remain constant, providing stability and predictability in budgeting. In contrast, an adjustable-rate mortgage (ARM) would have an interest rate that adjusts according to changes in market interest rates (option A), leading to potential fluctuations in monthly payments (option C). The ability to renegotiate loan terms after a set period of time (option D) is more commonly associated with refinancing rather than a fixed-rate mortgage.