FillCalibri (Body)11 AAabcWrap Me Paste Clear BLU 172 39A 40 41 42 43 45 46 5) A

Question

FillCalibri (Body)11 AAabcWrap Me Paste Clear BLU 172 39A 40 41 42 43 45 46 5) Assuming all APRs equal, the effective interest rate on a loan is highest when 47 (A) The loan has no points and a 30 year maturity and is prepaid in five years 48 (B) The loan has no points and is prepaid at maturity 9 (C) 50 (D)Points are charged and the loan has a 30 year maturity but prepaid in five years Points are charged and the loan is paid off at maturity in 30 years 51 52 6) APR stands for which af the following? Annual percentage rate 54 (B) Amortized percentage regulator 5(C) 57 5 Accrued percentage rate (D) Annual percentage regulator 58 7) Which one of the following is TRUE about Prepayment penalties: 9 (A)They are never used with residential mortgages 60 (B) They lower the effective cost if the loan is repaid before maturity 61 (C) They are equivalent to charging additional points for the loarn 2 (D) They are not included in the APR calculation 64 8) APR stands for which of the following? 65 Annual percentage rate Amortized percentage regulator 67 (C) Accrued percentage rate 68 (D) Annual percentage regulator 70 9) Demand for a mortgage loan is considered 71 72 73 Stable demand Derived demand Interest rate demand 4 (D) Nominal demand 75 Read

Explanation / Answer

Question - 5 ......... Option - D

When points are charged, the borrower had to pay an upfront money as per points. This is a fixed charge, so if the loan is repaid earlier, we have increase in effective interest rate.

Question - 6 ...........Option - A

Annual percentage rate = APR

Question - 7 ..........Option - D

Question - 8 ........Option - A

Question - 9 .........Option - D

Demand for underling assest shall define the demand for mortgage loans

Related Questions

Navigate

• Browse (All)
• Browse F
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.