Search
Browse
Create
Log in
Sign up
Log in
Sign up
Upgrade to remove ads
Only $2.99/month
Real Estate Ch 15
STUDY
Flashcards
Learn
Write
Spell
Test
PLAY
Match
Gravity
Key Concepts:
Terms in this set (10)
1. The most typical adjustment interval on an adjustable rate mortgage (ARM) once the interest begins to change is:
One year.
2. A characteristic of a partially amortized loan is:
A balloon payment is required at the end of the loan term
3. If a mortgage is to mature (i.e. become due) at a certain future time without any reduction in principal, this is called
An interest-only mortgage.
4. The dominant loan type originated by most financial institutions is the
Fixed-payment, fully amortized mortgage
5. Which of the following statements is true about 15-year and 30-year fixed-payment mortgages?
. Assuming they can afford the payments on both mortgages, borrowers usually should choose a 30-year mortgage over an otherwise identical 15-year loan if their discount rate (opportunity cost) exceeds the mortgage rate
6. Adjustable rate mortgages (ARMs) commonly have all the following except
. An inflation index
7. The annual percentage rate (APR) was created by
The Truth-in-Lending Act of 1968
8. On a level-payment loan with 12 years (144 payments) remaining, at an interest rate of 9 percent, and with a payment of $1,000, the balance is
$87,871
9. On the following loan, what is the best estimate of the effective borrowing cost if the loan is prepaid in six years?Loan: $100,000
Interest rate: 7 percent
Term: 180 months
Up-front costs: 7 percent of loan amount
8.7 percent.
10. Lender's yield differs from effective borrowing costs (EBC) because
EBC accounts for additional up-front expenses that lender's yield does not
THIS SET IS OFTEN IN FOLDERS WITH...
Real Estate Ch 14
10 terms
Real Estate Ch 10
11 terms
Real Estate Ch 11
10 terms
REAL-370 Ch. 21
10 terms
YOU MIGHT ALSO LIKE...
CH 15: Mortgage Calculations and Decisions
51 terms
FIN 351 Ch 15
31 terms
OTHER SETS BY THIS CREATOR
USA Securities
26 terms
Chapter 5 63
36 terms
Chapter 4 63
21 terms
Chapter 3 63
34 terms