Question 1

A borrower takes out a 30-year mortgage loan for $250,000 with an interest rate of 5%. What would the monthly payment be?

Accepted Answer

A)  $694 
B)  $1,042 
C)  $1,342 
D)  $1,355 
E)  Not enough information 
A)  $694 
B)  $1,042 
C)  $1,342 
D)  $1,355 
E)  Not enough information

Question 2

One difference between the constant amortizing mortgage CAM) and the constant payment mortgage CPM) is the interest paid and loan amortization relationship. With a CAM, the loan amortization and interest paid are directly related and with the CPM the loan amortization and the interest paid are inversely related.

Accepted Answer

A) True 
 B)False

Question 3

At the end of five years, calculating the loan balance of a constant payment mortgage is simply the:

Accepted Answer

A)  Present value of a single amount 
B)  Future value of a single amount 
C)  Present value of an ordinary annuity 
D)  Future value of an ordinary annuity 
A)  Present value of a single amount 
B)  Future value of a single amount 
C)  Present value of an ordinary annuity 
D)  Future value of an ordinary annuity

Question 4

One of the first amortizing mortgages was the constant amortization mortgage. Which of the following characterized the components of the CAM payment over the life of the loan? Interest Amortization Payment

Accepted Answer

A)  Decreasing Decreasing Decreasing 
B)  Constant Decreasing Decreasing 
C)  Decreasing Constant Decreasing 
D)  Constant Constant Constant 
A)  Decreasing Decreasing Decreasing 
B)  Constant Decreasing Decreasing 
C)  Decreasing Constant Decreasing 
D)  Constant Constant Constant

Question 5

A borrower has a 30-year mortgage loan for $200,000 with an interest rate of 6% and monthly payments. If she wants to pay off the loan after 8 years, what would be the outstanding balance on the loan?

Accepted Answer

A)  $84,886 
B)  $91,246 
C)  $146,667 
D)  $175,545 
E)  Not enough information 
A)  $84,886 
B)  $91,246 
C)  $146,667 
D)  $175,545 
E)  Not enough information

Question 6

The APR for a loan assumes it is prepaid after ten years.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is NOT a determinant of interest rates for single family residential mortgages?

Accepted Answer

A)  The demand and supply of mortgage funds 
B)  Inflation expectations 
C)  Liquidity 
D)  The demand and supply of apartments 
A)  The demand and supply of mortgage funds 
B)  Inflation expectations 
C)  Liquidity 
D)  The demand and supply of apartments

Question 8

One of the most popular amortizing mortgages today is the constant payment mortgage. Which of the following characterizes the components of the CPM payment over the life of the loan? Interest Amortization Payment

Accepted Answer

A)  Decreasing Decreasing Decreasing 
B)  Increasing Decreasing Constant 
C)  Decreasing Increasing Constant 
D)  Constant Constant Constant 
A)  Decreasing Decreasing Decreasing 
B)  Increasing Decreasing Constant 
C)  Decreasing Increasing Constant 
D)  Constant Constant Constant

Question 9

Determining a loan balance on a CPM is a simple future value of an annuity problem.

Accepted Answer

A) True 
 B)False

Question 10

Graduated payment mortgage are loans available to people who have graduated from college.

Accepted Answer

A) True 
 B)False

Question 11

In comparison to the first month's payment of a CAM, the first month's payment of a CPM:

Accepted Answer

A)  Is higher 
B)  Is lower 
C)  Is the same 
D)  Cannot be determined with this information 
A)  Is higher 
B)  Is lower 
C)  Is the same 
D)  Cannot be determined with this information

Question 12

Lenders and investors worry about default, interest rate, marketability, and liquidity risks.

Accepted Answer

A) True 
 B)False

Question 13

A borrower takes out a 30-year mortgage loan for $250,000 with an interest rate of 5% and monthly payments. What portion of the first month's payment would be applied to interest?

Accepted Answer

A)  $694 
B)  $1,042 
C)  $1,342 
D)  $1,355 
E)  Not enough information 
A)  $694 
B)  $1,042 
C)  $1,342 
D)  $1,355 
E)  Not enough information

A borrower takes out a 30-year mortgage loan for $250,000 with an interest rate of 5%. What would the monthly payment be?

At the end of five years, calculating the loan balance of a constant payment mortgage is simply the:

One of the first amortizing mortgages was the constant amortization mortgage. Which of the following characterized the components of the CAM payment over the life of the loan? Interest Amortization Payment

A borrower has a 30-year mortgage loan for $200,000 with an interest rate of 6% and monthly payments. If she wants to pay off the loan after 8 years, what would be the outstanding balance on the loan?

The APR for a loan assumes it is prepaid after ten years.

Which of the following is NOT a determinant of interest rates for single family residential mortgages?

One of the most popular amortizing mortgages today is the constant payment mortgage. Which of the following characterizes the components of the CPM payment over the life of the loan? Interest Amortization Payment

Determining a loan balance on a CPM is a simple future value of an annuity problem.

Graduated payment mortgage are loans available to people who have graduated from college.

In comparison to the first month's payment of a CAM, the first month's payment of a CPM:

Lenders and investors worry about default, interest rate, marketability, and liquidity risks.

A borrower takes out a 30-year mortgage loan for $250,000 with an interest rate of 5% and monthly payments. What portion of the first month's payment would be applied to interest?

Real Estate Investment: Basic Legal Concepts

Real Estate Financing: Notes and Mortgages

Mortgage Loan Foundations: the Time Value of Money

Adjustable and Floating Rate Mortgage Loans

Mortgages: Additional Concepts, Analysis, and Applications

Single Family Housing: Pricing, Investment, and Tax Considerations

Underwriting and Financing Residential Properties

Income-Producing Properties: Leases, Rents, and the Market for Space

Valuation of Income Properties: Appraisal and the Market for Capital

Investment Analysis and Taxation of Income Properties

Financial Leverage and Financing Alternatives

Risk Analysis

Disposition and Renovation of Income Properties

Financing Corporate Real Estate

Financing Project Development

Financing Land Development Projects

Structuring Real Estate Investments: Organizational Forms and Joint Ventures

The Secondary Mortgage Market: Pass-Through Securities

The Secondary Mortgage Market: Cmos and Derivative Securities

Real Estate Investment Trusts Reits

Real Estate Investment Performance and Portfolio Considerations

Real Estate Investment Funds: Structure, Performance

Filters

Exam 4: Fixed Interest Rate Mortgage Loans

A borrower takes out a 30-year mortgage loan for $250,000 with an interest rate of 5%. What would the monthly payment be?

At the end of five years, calculating the loan balance of a constant payment mortgage is simply the:

One of the first amortizing mortgages was the constant amortization mortgage. Which of the following characterized the components of the CAM payment over the life of the loan? Interest Amortization Payment

A borrower has a 30-year mortgage loan for $200,000 with an interest rate of 6% and monthly payments. If she wants to pay off the loan after 8 years, what would be the outstanding balance on the loan?

The APR for a loan assumes it is prepaid after ten years.

Which of the following is NOT a determinant of interest rates for single family residential mortgages?

One of the most popular amortizing mortgages today is the constant payment mortgage. Which of the following characterizes the components of the CPM payment over the life of the loan? Interest Amortization Payment

Determining a loan balance on a CPM is a simple future value of an annuity problem.

Graduated payment mortgage are loans available to people who have graduated from college.

In comparison to the first month's payment of a CAM, the first month's payment of a CPM:

Lenders and investors worry about default, interest rate, marketability, and liquidity risks.

A borrower takes out a 30-year mortgage loan for $250,000 with an interest rate of 5% and monthly payments. What portion of the first month's payment would be applied to interest?

Real Estate Investment: Basic Legal Concepts

Real Estate Financing: Notes and Mortgages

Mortgage Loan Foundations: the Time Value of Money

Adjustable and Floating Rate Mortgage Loans

Mortgages: Additional Concepts, Analysis, and Applications

Single Family Housing: Pricing, Investment, and Tax Considerations

Underwriting and Financing Residential Properties

Income-Producing Properties: Leases, Rents, and the Market for Space

Valuation of Income Properties: Appraisal and the Market for Capital

Investment Analysis and Taxation of Income Properties

Financial Leverage and Financing Alternatives

Risk Analysis

Disposition and Renovation of Income Properties

Financing Corporate Real Estate

Financing Project Development

Financing Land Development Projects

Structuring Real Estate Investments: Organizational Forms and Joint Ventures

The Secondary Mortgage Market: Pass-Through Securities

The Secondary Mortgage Market: Cmos and Derivative Securities

Real Estate Investment Trusts Reits

Real Estate Investment Performance and Portfolio Considerations

Real Estate Investment Funds: Structure, Performance

Filters