Question: 1) If a borrower would like to lower his/her monthly mortgage payments he/she can make a larger initial down payment.

Explain if this is true or false with explanation.

2) If you buy a home all of your mortgage payments you make will increase the value of your equity in the home by that same amount.

Explain if this is true or false with explanation.

3) Inflation reduces the real interest rate a borrower pays of the mortgage is a fixed rate mortgage.

Explain if this is true or false with explanation.

4) The APR or Annual Percentage Rate includes fees and points that a borrower must pay. This is why the APR is higher than the mortgage interest rate.

Explain if this is true or false with explanation.