Multiple Choice
A borrower takes out a 30-year adjustable rate mortgage loan for $200,000 with monthly payments.The first two years of the loan have a "teaser" rate of 4%,after that,the rate can reset with a 5% annual payment cap.On the reset date,the composite rate is 6%.Assume that the loan allows for negative amortization.What would be the outstanding balance on the loan at the end of Year 3?
A) $190,074
B) $192,337
C) $192,812
D) $192,926
Correct Answer:
Verified
Correct Answer:
Verified
Q3: Under which scenario is negative amortization likely
Q4: ARMs were developed because lenders were tired
Q5: In order to calculate the APR for
Q6: Which is NOT a component of an
Q7: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5566/.jpg" alt=" Which loan in
Q9: Lender's can partially avoid estimating interest rates
Q10: Which of the following is a disadvantage
Q11: Given that every other factor is equal,which
Q12: A borrower takes out a 30-year adjustable
Q13: A borrower takes a 30-year,fully amortizing,5/1 ARM