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Chapter 16: Back of Book MC Questions

Terms in this set (9)

A loan wherein the principal is all repaid in one lump sum payment at the end of the loan's life is known as
straight or term loan
The last day of a loan's life is known as the
maturity date
To determine the amount of loan payments by using an amortization table, you must know all the following
frequency of payments, interest rates, amount of loan

YOU DONT NEED: loan to value ratio
Amortization tables can be used by real estate agents to determine which of the following?
frequency of payment, interest rate, maturity, amount of loan
A major negative of balloon loan
meeting the final payment when it comes due, refinancing when the final payment comes due
Kevin wants to know what portion of a 30-year fully amortized loan would be paid off by the 4th year of the loan's life. Kevin would consult
a loan balance table
By the tenth year of a 9.5%, 30 year amortization period, how much of the principal balance will have been repaid under a monthly amortization of equal installments?
?????? NONE OF THE ABOVE
The FHA has been influential in bringing about acceptance of
long term amortization of loans
standardized construction techniques
Regarding mortgage insurance, which of the following statements are true?
PMI insures only top 20-25% of the loan
FHA insures the entire loan
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