K Fill in the blank to complete the sentence below. A(n) rate mortgage may be completely amortized at the initiation of the loan. adjustable high low fixed
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- Which of the following is subject to change over the life of an adjustable-rate mortgage loan? a.Initial rate b.Margin c.Note rate d.Annual and life of loan capsWhich of the following is true when the mortgage loan is an amortizing loan? a. At the beginning of the term of the loan the largest part of the payment is a paydown of principal, but a payments progress a rising portion is applied to interest payments. b. Interest payments and paydown of principal remain constant during the loan. c. At the beginning of the term of the loan the largest part of the payment is interest, but a payments progress a rising portion is applied to the paydown of principal. d. Paydown of principal occurs at the end of the loan. e. None of the above.The repayment of a loan in a series of equal periodic payments is called _____________. a. Amortization b. Mortgage c. Down payment d. Installment loan
- All of these have a balloon payment due at the end of the loan term EXCEPT a.a fully amortized loan. b.a term/straight loan. c.a partially amortized loan. d.an interest-only loan.in.......................all of the interest is paid at end of the term a)Amortized loan b)interest-only loan c)ordinary loan d)discount loanA "mortgage" is a loan contract and is actually made up of which two contracts: O Index & Margin O Note & Deed Fixed & Adjustable O Amortized & Interest-Only
- (c) Use the graph to estimate the amount of the mortgage.Explain Partially Amortizing, Constant Payment Mortgage (CPM) Loans with example?33 .The portion of the selling price paid by the customer at the time of purchase is called ________. a. Mortgage b. Amortization c. Down payment d. Installment loan
- 7. Time Value of Money: Amortized Loans An important application of -Select- interest involves amortized loans. Some common types of amortized loans are automobile loans, home mortgage loans, and business loans. Each loan payment consists of interest and repayment of principal. This breakdown is often developed in an amortization schedule. Interest is -Select- in the first period and -Select- over the life of the loan, while the principal repayment is -Select- in the first period and it -Select- thereafter. Quantitative Problem: You need $15,000 to purchase a used car. Your wealthy uncle is willing to lend you the money as an amortized loan. He would like you to make annual payments for 5 years, with the first payment to be made one year from today. He requires a 6% annual return. a. What will be your annual loan payments? Do not round intermediate calculations. Round your answer to the nearest cent. $ b. How much of your first payment will be applied to interest and to principal…Explain Fully Amortizing, Constant Payment Mortgage (CPM) Loans?A Collateralized Mortgage Obligation (CMO) allows you to create some AAA rated tranches from a pool of subprime mortgages by ordering the tranches by payback precedence. Question 36 options: True False