A loan applicant inquires about refinancing his primary residence. He reports receiving a competitor's quote of a 4.50% interest rate with no points. The mortgage loan originator (MLO) discovers that the best interest rate available at this time is 4.75% with no points. To get the applicant a 4.50% Interest rate, the applicant needs to pay a 1.00% discount point. Which of the following interest rates is the MLO permitted to offer to the applicant? A 4.00% interest rate with a 0.50% discount point A 4.25% interest rate with no points Co A 4.50% interest rate with no points A 4.50% interest rate with a 1.00% discount point

A loan applicant inquires about refinancing his primary residence. He reports receiving a competitor's quote of a 4.50% interest rate with no points. The mortgage loan originator (MLO) discovers that the best interest rate available at this time is 4.75% with no points. To get the applicant a 4.50% Interest rate, the applicant needs to pay a 1.00% discount point. Which of the following interest rates is the MLO permitted to offer to the applicant? A 4.00% interest rate with a 0.50% discount point A 4.25% interest rate with no points Co A 4.50% interest rate with no points A 4.50% interest rate with a 1.00% discount point

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

Problem 1PS

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With loans, spreadsheets make it easy to _____. (can be more than 1 of the options listed below) a. Calculate the amortization schedule b. Determine the number of remaining loan payments c. Find the loan balance due at any time d. Demonstrate the split between the principal and interest amounts.
How do you calculate the rate on an Adjustable Rate Mortgage? Survey the cost of funds an local banks. O Use the amortization formula. With a financial calculator. O Index + Margin
A borrower has two alternatives for a loan: (1) issue a $570,000, 90-day, 7% note or (2) issue a $570,000, 90-day note that the creditor discounts at 7%. Assume a 360-day year. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. X Open spreadsheet a. Compute the amount of the interest expense for each option. Round your answer to the nearest dollar. for each alternative. b. Determine the proceeds received by the borrower in each situation. Round your answers to the nearest dollar. (1) $570,000, 90-day, 7% interest-bearing note: $ (2) $570,000, 90-day note discounted at 7%: $ c. Alternative is more favorable to the borrower because the borrower
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What is the Schedule A deduction for interest expense? Paul paid interest to his lenders as follows: Primary home mortgage $7,200 Home-equity loan 435 (not acquisition debt) Credit cards 498 Car loan 390 Primary home mortgage Home-equity loan Credit cards Car loan
Suppose you earn a gross income of $2,915.00 per month and apply for a mortgage with a monthly PITI of $900.74. You have other financial obligations totaling $174.90 per month. If the lending ratio guidelines are as given in the table below, what type of mortgage, if any, would you qualify for? Mortgage Type Housing Expense Ratio Total Obligations Ratio FHA 29% 41% Conventional 28% 36% O FHA only O Conventional only O FHA and Conventional O None of the above
A buyer has agreed to purchase a home for $50,500. The buyer will assume a first mortgage in the amount of $32.200, will deposit $2.200 as earnest money, will deposit $5,600 in cash at cosing, and wl give the sellet a purchase- money mortgage for the balance. What is the amount of the purchase-money mortgage? a)$24,400 b)$18,300 c)$16,100 d)$10,500
1
Loan Servicing Companies.. O Collects monthly payments, remits to investor O Purchase loans on the secondary market O Decide on credit criteria for new loans O Underwrite home loans
When purchasing a vehicle or obtaining a mortgage, you are most likely to get what kind of loan: O pure discount O interest only amortized loan with fixed payment amortized loan with fixed principal payment
Calculate the housing expense ratio and the total obligation ratio (in %) for the following mortgage applications. (Round your answers to two decimal places.) Applicant Emerson Monthly Monthly Gross PITI Income Expense $2,700 $633 Other Monthly Financial Obligations $270 Housing Expense Ratio (%) % Total Obligations Ratio (%) %

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