Which combination of factors would result in the lowest monthly mortgage payment?
abig down payment, a shorter term loan, and high interest rate
bbig down payment, a longer term loan, and low interest rate
csmall down payment, a shorter term loan, and small interest rate
dsmall down payment, a shorter term loan, and high interest rate

In a fixed-term, level-payment reverse mortgage, sometimes called a reverse annuity mortgage, or ram, a lender agrees to pay the homeowner a monthly payment, or annuity, and expects to be repaid from the homeowner’s equity when he or she sells the home or obtains other financing to pay off the ram. consider a household that owns a $150,000 home free and clear of mortgage debt. the ram lender agrees to a $100,000 ram for 10 years at 6 percent. assume payments are made annually, at the beginning of each year to the homeowner. calculate the annual payment on the ram.