Commercial Spreads O The margin over US Treasuries used to determine the rate O The difference between commercial and residential mortgages O Are always lower than residential spreads Change throughout the loan term

Q: Borrowers should consider refinancing their existing fixed rate mortgage (FRM) loan only when the…

A: A loan is a financial arrangement in which one or more people, companies, or other entities lend…

Q: Which one of these does not affect the cash flow to creditors? Multiple Choice O O Interest paid on…

A: The "cash flow to creditors" is a financial metric that represents the cash-related transactions…

Q: Discusses price changes for interest rates on loans explain why this change may be taking place.

A: Interest rate are the percentage of the loan amount which the borrower needs to pay to the lender in…

Q: Which of the following is not included in the MHE, or PITI, payment? O Principal O Points O Interest…

A: “Since you have asked multiple questions, we will solve the one question for you. If you want any…

Q: which of the following conditions indicates that a loan assumption is least advisable? An existing…

A: Loan Assumption In a simple term loan assumption which indicates that financial obligation which was…

Q: Differentiate between free and costly trade credit.What is the formula for determining the…

A: Answer: Free trade and costly trade credit: If trading is on credit, the suppliers of products often…

Q: What Percentage of down- payment do you have to give to the bank when buying a mortgage

A: Down Payment : It is the Initial lump sum amount which the borrower pay before sanction of loan.…

Q: Explain Second Mortgages and Shorter Maturities?

A: It is a type of mortgage loan which is similar to a mortgage loan which is tenable by a borrower's…

Q: The advantage of a "balloon payment" loan over a conventional loan  repayment plan is:   A. less…

A: Balloon payment is referred as a large lump-sum payment, which is made at the end of the loan period…

Q: Importance of the “Teaser Rate” on ARMs—Residential Loans

A: Answer: Introduction: A teaser rate at the beginning of an adjustable mortgage rate (ARM) is the…

Q: Because banks accept short term fixed rate deposits they prefer to give loans where loan rate floats…

A: Fixed interest rates are 1%-2.5% higher than the floating interest rate. The increase and decrease…

Q: Explain three characteristics of adjustable- te mortgage b) Explain the limitations of the oss…

A: An adjustable-rate mortgage (ARM) is a type of home loan in which the interest rate can change over…

Q: Which is true of variable rate loans? A) the rate can only go up B) the interest rate can go up or…

A: Variable rate loans, also known as adjustable-rate loans, have interest rates that can fluctuate…

Q: hat relationship exists between the length of the loan and the monthly payment? How does the…

A: Loans are paid by the monthly payments that are fixed payments and the monthly payments carry the…

Q: The internal rate of return on a mortgage loan calculated from the lender's perspective is more…

A: Discount point is the amount or a part of mortgage amount which the borrower pay at the time of…

Q: You are planning on taking out a mortgage and would ake to determine the cash value for a given down…

A: Solution:- When a loan is taken, it can either be repaid as lump sum payment or in instalments.

Q: Which of the following is a mortgage loan that has a fixed rate, a fixed term, and fixed payments? O…

A: The question is based on the concept of mortgages and different methods of mortgages. A mortgage is…

Q: Which of the following is false? I. A lower interest rate would increase the present value of an…

A: Solution: Present value means the value of cash flows in today’s terms.

Q: Increasing the number of payments on a mortgage loan always decreases the payment amount, all other…

A: When considering the impact of changing the number of payments on a mortgage loan, it is important…

Q: default risk of comm

A: Commercial real states are the types of loans in which independent lenders, banks, etc are actively…

Q: Explain in general terms how the portion s of loan payment going to principal and interest change…

A: A loan payment consists of principle and interest, change over the life of the loan because with…

Q: Over the duration of the loan, the total loan payment is... ... gradually increasing for…

A: Loans are paid by equal fixed payments that carry the interest and loan payments.

Q: With a Fixed-Rate Mortgage, the ate risk. bears the interest bears the interest rate risk and with…

A: A mortgage is a type of loan that requires security. The mortgage can classify based on the interest…

Q: Overcollateralization refers to practice with mortgage backed security pools whereby additional…

A: As you have asked multiple questions, we will solve the first question as per policy. Request you to…

Q: answe

A: The net rate of return is the return on an asset after expenses such as taxes, depreciation, and…

Q: Through credits cards lines with a certain credit limit Through a guaranteed credit line that has a…

A: Banks provide  short term credit to the business for maintaining the liquidity and enough working…

Q: Default risk is generally much greater for commercial mortgage loans than home loans because...

A: In finance default risk refers to that risk in which the borrower will not be able to make the…

Q: What aspect of FHA loans made them particularly attractive to investment companies such as life…

A: FHA loans can be referred as the loans that are ussually required lesser financial obligations and…

Q: Part B: Choose the correct option for each question (loans) A) increased, increased B) increased,…

A: The length of a loan, also referred to as the loan term or maturity, represents the duration over…

Q: Use the following information to solve for both the levered and unleved NPV & IRR Please note:…

A: Mortgages are an important aspect of personal finance, especially when considering purchasing a…

Q: Pls help on this question. pls do all of the question pls i beg. Pls do all three parts.

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: Different compounding periods, are used for different types of investments. In order to properly…

A: The Effective Rate is the interest rate that takes into account the compounding of interest over a…

Q: Why might a wraparound lender provide a wraparound loan at a lower rate than a new first mortgage?

A: Introduction: Wraparound mortgage is a type of loan in which loans are given to borrowers, who is…

Q: 19. When a lender offers a below-market interest rate in exchange for an equity position in the…

A: As per company policy it is only possible to solve one question. So solving question 19.

Q: Compare and contrast adjustable-rate mortgages (ARMs) to Growth Equity Mortgage (GEM). What are the…

A: GEM and ARM are the types of mortgage options that are available to the borrower. They are different…

Q: . How do rising interest rates affect the size of real estate loans that lenders will advance?

A: The central bank of a country changes the interest rates intermittently to control inflation or…

Q: Consider the sale for which the lender quoted a mortgage capitalization rate at 9.0%. If the equity…

A: Given: Mortgage capitalization rate at 9.0% equity capitalization rate is 15.0% Loan-to-value ratio…

Q: Asset-based lending is typically used to finance a. accounts receivable b. real estate. c.…

A: Asset-based lending is typically used to finance  c. construction and development projects.     A…

Q: Δ%(MV)  = -MD*Δr When we use this equation to evaluate a loan, this equation does not totally…

A: The values of the loans change when there is a change in the interest rates. The duration helps to…

Q: Which of these is NOT likely to lead to more expensive mortgages?

A: 1. A higher origination loan to value ratio indicates that the lender is taking more risk in case…