Exam 4: The Early History of Residential Finance and Creation of the Fixed Rate Mortgage

Suppose you take an FRM of $150,000 at 7.5% for 30 years.If you repay the mortgage at the end of year four,how much total interest did you pay?

A discount point is:

Under a normal upward sloping yield curve scenario,fifteen year fixed-rate mortgages should be priced _________ thirty-year fixed-rate mortgages.

The annual percentage rate (APR)on a mortgage is:

A prepayment penalty in a mortgage has the effect of ________ the APR.

In Roman law the an instrument used to secure a loan was called a fiducia,which means:

The effective interest charge on a loan will be effected by:

Suppose you take an FRM of $150,000 at 7.5% for 30 years.What is the breakdown of interest and principal for the payment in month 240?

You have just taken a $110,000 FRM at 8% for 30 years,monthly payments.You know that your APR is 8.214% but you cannot remember how many discount points you paid.If you had $550 in financing fees other than discount points,the points you paid were:

You take a fixed-rate mortgage for $120,000 at 6.25% for 30 years,monthly payments.At the end of the second year,you unexpectedly inherit $16,000 from your now-favorite aunt.You decide to apply this $16,000 to the principal balance of your loan.What is the balance of the mortgage at the end of year two After the extra payment?

The Truth-in-Lending law: