Search
Browse
Create
Log in
Sign up
Log in
Sign up
Upgrade to remove ads
Only $2.99/month
ch. 18
STUDY
Flashcards
Learn
Write
Spell
Test
PLAY
Match
Gravity
Key Concepts:
Terms in this set (14)
You are buying a $162,000 house with a 20% down payment and a fixed-rate mortgage for the remainder at 8.75% for 30 years with monthly payments. How much interest is paid over the course of the first 12 months
$237,442.94
How many discount points are necessary to raise the yield of a 12% loan with 360 monthly
payments of $514.30 to 12.42%?
3
Bob is considering fixed-rate loans from two different lenders who are willing to finance the
purchase of a home. The loan amount is $90,000. Lender A is offering a 30-year, monthly
payment loan at 7% interest with 2.5 points. Lender B is offering a 30-year, monthly payment
loan at 7.5% interest with no points. Which of the following bits of advice would be best for Bob
assuming he does not plan to prepay either loan
Loan a is better
A buyer can afford no more than $500 per month in payments. The most favorable loan
available in the market is a 30 year loan at 10%. What is the maximum affordable house with a
10% down payment
63306
A borrower is offered a mortgage loan for $100,000 with an interest rate of 10% and a 30-year
amortization period with monthly payments. The origination fee is 1% of the loan and the lender
charges two discount points. What is the effective interest rate
10.37%
When a mortgage loan with level periodic payments has been completely repaid
by the maturity date, it is said to be
fully amortized
A lender makes a $90,000 mortgage at 9% interest with monthly payments for 25 years. How
much principal will be repaid during the fourth year of the loan
1314
You are buying a $162,000 house with a 20% down payment and a fixed-rate mortgage for
the remainder at 8.75% for 30 years with monthly payments. What is the balance or
amount outstanding on the loan at the end of the fourth year
125333.08
In a fully amortizing, fixed-rate loan, the amount of each periodic payment
attributable to principal is
increasing at an increasing rate.
If payments are made monthly instead of annually on a fully amortizing fixed-rate loan, the total
amount of interest paid over the full term of the loan will be
less that it would otherwise be
Two-step mortgages are attractive to
borrowers who don't expect to own the property for the
entire length of the loan
As an alternative to the fixed-rate mortgage, borrowers can often obtain an adjustable rate
mortgage which has an initial interest rate below that of fixed-rate loans. Which of the following
statements best explains the rate difference
Lenders accept a lower initial rate because the
borrower bears some of the risk of future interest rate changes
Bill and nine of his friends each contributed $10,000 to form a real investment group. The group
then purchased a small retail center for $350,000 using an interest-only loan for $250,000 at
10% annual interest. At the end of one year, the building was sold for $410,000. What is the rate
of return on Bill's investment
35%
A real estate investment is expected to return to its owner $3,500 per year for 16 years after
expenses. At the end of year 16, the property is expected to be sold for $49,000. Assuming the
required rate of return is 14% for investments with this degree of risk, what is the net present
value of this property if the purchase price is $28,000 today
-51
THIS SET IS OFTEN IN FOLDERS WITH...
CH. 17
8 terms
LA Real Estate Test 1&2 Review
42 terms
Modern Real Estate Practice Chapter 16 Real Estate…
50 terms
Alexandra is managing a 15-unit apartment building…
73 terms
YOU MIGHT ALSO LIKE...
17
Investments
Finance Chapter 9
41 terms
NMLS Word Problems
77 terms
OTHER SETS BY THIS CREATOR
Strategic Management Test #1
47 terms
Chapter 1: The Entrepreneurial Life
48 terms
Human Resources CH. 4,5,6
60 terms
Human resource management. Ch. 1
23 terms