Which of the following is true? a. Fixed-rate Mortgage - Your interest rate may vary considerably b. Adjustable-rate Mortgage - The loan starts out at a lower interest rate and then changes on a regular basis

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: A)   _____ is a market in which existing mortgages are bought and sold   Select one:   a.…

A: It is a market where mortgage loans and service rights are bought and sold. If the mortgage loans…

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: 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: Define the term amortized but write down its meaning in your own words in reference to amortized…

A: Since there are multiple questions it is only possible to solve the 1st part.

Q: If a mortgage is the price of a mortgage, can you explain the rise in mortgage prices using basic…

A: INTRODUCTION Yes, you can.If a mortgage is the price of a mortgage, then, in general, the more…

Q: What is the difference between an investment - grade bond and a junk bond?  2 .  What are the…

A: The primary difference between an investment grade bond and a junk bond lies in the credit quality…

Q: Explain the difference between calculating simple interest and calculating the interest for a…

A: When you take out a loan, the money you borrow is called the principal. The rate of interest is the…

Q: You have a choice among three types of loan (discount loan, interest - only loan, and amortized…

A: The objective of the question is to determine whether an amortized loan is the least expensive cost…

Q: What is a balloon mortgage? O A mortgage in which a large portion of the borrowed principal is…

A: Balloon mortgage is a type of mortgage in which periodic payments are low. A balloon mortgage does…

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: balloon-payment mortgage. Why might a financial institution prefer to offer this type of mortgage?

A: Step 1 A balloon payment is a one-time payment that is bigger than usual at the expiration of the…

Q: in layman's terms, what is the diff. between a mortgage backed security and a credit default swap?

A: The borrowings made for purchasing fixed-assets like land, property, home and apartments is…

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: A fixed rate mortgage has flexible monthly payments. True O False

A: False.A fixed-rate mortgage typically has fixed monthly payments, meaning that the amount you pay…

Q: Mortgages can be insured? Who insures mortgages and why? Can mortgages be sold? If so, who buys…

A: YES, mortgage can be insured. Mortgage insurance is an insurance policy that protects a mortgage…

Q: In a reverse mortgage there are significant monthly principal and interest payments. Question 7…

A: A reverse mortgage refers to a loan that is borrowed on a property where the borrower does not have…

Q: A fixed-rate mortgage is best if you want a mortgage with all the following features EXCEPT   a.…

A: In case of a fixed rate mortgage the interest rate remains the same throughout the term of the…

Q: An insurance company makes long-term loans with variable interest rates. It funds the loans by…

A: The explanation is briefly described in step 2

Q: Which of the following is true? a. A twenty year fixed rate mortgage has a lower interest rate than…

A: Comment- We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

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: Which equation would not work to find the fixed rate of simple interest on his loan? a) r= Pt b) / =…

A: Simple Interest is considered one of the easiest and simplest methods of calculating interest. Under…

Q: If you were taking out a loan and the interest rate was the same either way, would you want it to be…

A: Simple interest is the interest payable on principal or borrowed amount only. Compound interest is…

Q: Explain The Price Level Adjusted Mortgage (PLAM)?

A: Mortgage loan allows the buyer to pay some portion of amount in the beginning and pay the remaining…

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: Explain the term Fixed Interest Rate Mortgage (FRM) Loan?

A: Mortgage loans:   The mortgage is a type of loan in which a property or any other real estate is…

Q: Explain the reason why the wraparound lender should be willing to make the loan at a rate that is…

A: Wraparound mortgage is a type of secondary financing in which the seller extends an additional…

Q: Explain why adjustable rate mortgages (ARMs) are considered to be a more suitable alternative for…

A: Adjustable rate mortgages : Also referred to as variable rate or floating rate mortgages, an…

Q: What is the current rate of interest for a 30-year mortgage? Is this a reasonable rate of return for…

A: As of July 2024, the average interest rate for a 30-year fixed-rate mortgage is approximately 6.77%…

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: Fill in the blank. A loan on which you pay a fixed amount of money for a set number of payments is…

A: There are various ways of providing loan such as  Fixed instalment loan where it must be repaid with…

Q: A mortgage is a common type of:   Question 2 options:   Payment   Perpetuity   Annuity   Future…

A: Loan is defined as an amount obtained by a person from a lender that requires the obligation of…

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: What are the three 'C's' of mortgage underwriting?  What is one way in which each of the 'C's' is…

A: When you buy house than you need loan for home but there is need of down payment also and remaining…

Q: Why is the rate of Fixed Rate Mortgage higher than Adjustable Rate Mortgage? O Liquidity risk…

A: The difference between Fixed rate mortgage and Adjustable rate mortgages is the interest rate risk…

Q: Differentiate between a fixed-rate mortgage and avariable-rate mortgage.

A:

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…

Q: Amortized loans with equal principal repayments will result in less interest being paid over the…

A: If the loan amount amortize with equal amount of principal it means it is repaying more amount of…