Answer
The accurate descriptions of the mortgage terms include: “The monthly interest rate is 4 percent.” This indicates that the homeowner must pay an additional 4% of the amount due each month. “Monthly payments must be made for 30 years.” This outlines that the homeowner commits to making payments each month over a span of 30 years to settle the debt. “The homeowner is borrowing $200,000.” This refers to the principal amount the homeowner is securing from the lender, to be repaid in monthly installments over the 30-year term. The other statements are incorrect, as they misinterpret the mortgage details. The payment period spans 30 years, totaling 360 monthly payments‚Äînot 360 years, and the homeowner is not borrowing $360,000. Additionally, the annual interest rate cannot be accurately stated as 4.8%. Calculating this rate involves considering the specific months and days, making it closer to around 60%.
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