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2 Val has just purchased her first home. Her gross income is $6,000 a month and her GDS ratio is 30%. Non-mortgage costs per month are $600. Val's mortgage has a 3%, compounded semi-annually rate, with an amortization period of 25 years and monthly payments. If her home is valued at $350,000, which describes th type of mortgage has she? 1. Fixed-rate II. Variable-rate III. High-ratio IV. Conventional

2 Val has just purchased her first home. Her gross income is $6,000 a month and her GDS ratio is 30%. Non-mortgage costs per month are $600. Val's mortgage has a 3%, compounded semi-annually rate, with an amortization period of 25 years and monthly payments. If her home is valued at $350,000, which describes th type of mortgage has she? 1. Fixed-rate II. Variable-rate III. High-ratio IV. Conventional

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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2 Val has just purchased her first home. Her gross income is $6,000 a month and her GDS ratio is 30%. Non-mortgage costs per month are $600. Val's mortgage has a 3%, compounded semi-annually rate, with an amortization period of 25 years and monthly payments. If her home is valued at $350,000, which describes the type of mortgage has she? 1. Fixed-rate II. Variable-rate III. High-ratio IV. Conventional A B C D I and III, only II and IV, only II and III, only I and IV, only
Transcribed Image Text:2 Val has just purchased her first home. Her gross income is $6,000 a month and her GDS ratio is 30%. Non-mortgage costs per month are $600. Val's mortgage has a 3%, compounded semi-annually rate, with an amortization period of 25 years and monthly payments. If her home is valued at $350,000, which describes the type of mortgage has she? 1. Fixed-rate II. Variable-rate III. High-ratio IV. Conventional A B C D I and III, only II and IV, only II and III, only I and IV, only
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