Real Estate Finance and Investments 15th Edition By Brueggeman – Test Bank
$20.00
Real Estate Finance and Investments 15th Edition By Brueggeman – Test Bank
CHAPTER 4
Fixed Interest Rate Mortgage Loans
TRUE/FALSE
- Inflation makes very little difference to lenders of and investors needing money. (F)
- Lenders and investors worry about default, interest rate, marketability, and liquidity risks. (T)
- 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. (T)
- Determining a loan balance on a CPM is a simple future value of an annuity problem. (F)
- With every CPM, the effective costs of borrowing are higher than the stated rate of the loan. (F)
- Truth-in-lending requires the borrower to tell the truth on the loan application. (F)
- The annual percentage rate, disclosed at the loan closing, closely approximates the borrower’s true cost of funds. (F)
- Prepayment penalties increase the lender’s mortgage yield and discount points decrease it. (F)
- Origination fees are tax deductible as an interest expense. (F)
- Graduated payment mortgage are loans available to people who have graduated from college. (F)
- Borrowers with fixed rate mortgages generally benefit if actual inflation is higher than expected inflation. (T)
- The APR for a loan assumes it is prepaid after ten years. (F)
- With a reverse mortgage the borrower receives payments from the bank. (T)
MULTIPLE CHOICE
- A borrower takes out a 30-year mortgage loan for $250,000 with an interest rate of 5%. What would the monthly payment be? (C)
-
- $694
- $1,042
- $1,342
- $1,355
- Not enough information
- 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? (B)
-
- $694
- $1,042
- $1,342
- $1,355
- Not enough information
- 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? (D)
-
- $84,886
- $91,246
- $146,667
- $175,545
- Not enough information
- A borrower takes out a 30-year mortgage loan for $100,000 with an interest rate of 6% plus 4 points. What is the effective annual interest rate on the loan if the loan is carried for all 30 years? (C)
-
- 5.6%
- 6.0%
- 6.4%
- 6.6%
- A borrower obtains a $150,000 reverse mortgage with monthly payments over 10 years. If the interest rate of the mortgage loan is 8%, what is the monthly payment received by the borrower? (A)
-
- $820
- $863
- $1,250
- $1,820
Related Test Bank
Additional information
Frequently Asked Questions:
🚨 Warning: This Isn’t Your Typical Textbook! 🚨.
This Test Bank is a complete collection of study questions, instantly available for download in PDF format. It covers every chapter, giving you immediate access to high-quality, reliable study materials for effective exam preparation. All content is original and features 100% verified answers for your confidence.
What is a Test Bank?
A Test Bank is a study aid featuring a collection of questions with corresponding answers, typically related to academic textbooks. Publishers provide these test banks to instructors to assist in creating effective exams and tests for students.
Are all chapters included, and are there questions for each chapter?
Are answers to the questions verified?
Yes, all answers provided in the Test Bank are thoroughly verified to ensure accuracy.
Is the content original and directly from the publisher?
Yes, rest assured that the content is original and sourced directly from the publisher.
Can I share the Test Bank with others?
No, the Test Bank is for personal use only, and sharing or distributing it is not permitted.
Can I study the material on any device?
Absolutely! The Test Bank is in PDF format, making it compatible with all devices and browsers for your convenience.
How soon can I start studying after making a purchase?
Immediately! The Test Bank is available for instant download, allowing you to begin your study journey right after completing the purchase.
Are there any additional Test Banks or resources available?
Yes, we offer a variety of Test Banks, ATI, Hesi Exams, and more. Feel free to contact us for information on additional study resources.
What if I encounter technical issues with the download?
In case of any technical difficulties, please contact our support team, and they will promptly assist you in resolving the issue.
You May Also Be Interested In
Products related to this item
Solution Manual for Behavioral Corporate Finance 2nd Edition by Shefrin ISBN 1259277208 9781259277207
Original price was: $35.00.$26.90Current price is: $26.90. Buy Now
Solution Manual for Financial Management for Public Health and Not for Profit Organizations 4th Edition by Finkler Calabrese Purtell Smith ISBN 0132805669 9780132805667
Original price was: $35.00.$26.90Current price is: $26.90. Buy Now
Test Bank for Financial Management Concepts and Applications 1st by Foerster ISBN 013293664X 9780132936644
Original price was: $35.00.$26.90Current price is: $26.90. Buy NowWhat Our Customers Say About e-testbank.com
Excellent
Based on 653 reviews
Only logged in customers who have purchased this product may leave a review.
Reviews
There are no reviews yet.