Certified Apartment Portfolio Supervisor (CAPS) 2025 – 400 Free Practice Questions to Pass Module 2 Exam

Question: 1 / 400

What is the typical term length for a fixed-rate mortgage?

1-5 years

5-10 years

10-20 years

20-30 years

A fixed-rate mortgage typically has a term length of 20 to 30 years, making it a common choice for homebuyers. This extended duration offers several benefits, such as making monthly payments more affordable due to lower payment amounts spread across a longer time period. Additionally, the fixed interest rate provides predictability in budgeting as homeowners know their payments will not fluctuate over the life of the mortgage.

Choosing a term length within this range also reflects the general preference among lenders and buyers for stability and long-term planning. It allows homeowners to commit to their mortgage while being mindful of potential market changes that could influence interest rates. Other term lengths, such as 1-5 years or 5-10 years, are less common in traditional fixed-rate mortgages and are usually associated with different mortgage products that may not provide the same level of long-term financial security.

Get further explanation with Examzify DeepDiveBeta
Next Question

Report this question

Download Certified Apartment Portfolio Supervisor (CAPS) Practice Exam - Module 2 PDF Study Guide
Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy