Houtan HormozianExpert on Real Estate, Finance and PropTech

Which Loan Pays Off the Fastest? Mortgage Quiz Challenge

9 Jul 2025 · 1 min

Watch on YouTube

0:57

In this short mortgage quiz video, the host poses the question: which loan type reduces the principal balance most quickly? Four options are presented—A: 13% interest over 15 years, B: 14% over 20 years, C: 10% over 30 years, D: 11% over 20 years. The correct answer is option A. The host explains that shorter‑term loans, like a 15‑year loan, pay down principal faster and build equity sooner, and notes that the monthly payment on a 15‑year loan is often only slightly higher than on a comparable 30‑year loan. The video concludes with a call‑to‑action encouraging viewers to like, tag a friend, and contact the publisher for more information.

Chapters

Question of the day: Which type of loan will result in the largest reduction of the principal balance most quickly? A. 13% over 15 years. B. 14% over 20 years. C. 10% over 30 years. D. 11% over 20 years. The answer is letter A. The shorter the term of a loan, the more quickly principal is paid down and the faster equity builds. A 15-year loan at 13% interest rate would provide the largest and fastest reduction in the principal. Interestingly, the payments on a 15-year loan are often not that much higher than the same loan with a 30-year payback. However, there are other considerations and options borrowers should understand. Found this helpful? Please like our post and tag a friend. Contact us through our website or message us right here.