Which of the following statements is not true about mortgages? The ending balance of an amortized loan contract will be zero. Mortgages are examples of amortized loans. Mortgages always have a fixed nominal interest rate. The payment allocated toward principal in an amortized loan is the residual balance-that is, the difference between total payment and the interest due.

Q: Which of the following is NOT a necessary step for the straight-line method for amortizing premiums…

A: Amortizing premiums and discounts on long-term debt involves the process of gradually allocating and…

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: 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: Please answer fast.  17: reading securitization which one of the among assertions is false:   A:…

A: Instrument created by combining or pooling multiple financial assets into a single group This bundle…

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: 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: 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: Which of the following is an example of nonrecourse debt? (a) A personal loan secured by collateral…

A: A nonrecourse debt is where the borrower is liable only till its collateral, i.e the lender can only…

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: Most lenders do not require collateral for short-term financing.; True or False

A: Collateral refers to something that is pledged in order to repay a loan and which can be forfeited…

Q: Which of the following statements is TRUE? a. When the stated rate of interest exceeds the…

A: The stated rate is not considered the compounding factor of the time value of money. The effective…

Q: All of these have a balloon payment due at the end of the loan term EXCEPT a.​a fully amortized…

A: A balloon loan is a type of loan that which do not fully amortize during the tenure of the loan. As…

Q: define the parameters included in the interest rate of a mortgage. In addition, explain which of the…

A: Parameters included in the interest rate of a mortgage. Parameters included in the interest rate of…

Q: Vhich of the following is not a credit ev O loan refinancing O bankruptcy O default O debt downgrade

A: Credit default swaps are derivative contract that are done between the the parties and done to…

Q: Assuming the borrower is in no danger of default, under what conditions might a lender be willing to…

A: There can be majorly two possibilities under which a lender may accept a lesser amount than that of…

Q: Which of the following statements regarding fixed-rate loans is true?   Group of answer choices a.…

A: Fixed rate loans are loans which have a fixed rate of interest.

Q: 15. An interest-only loan is an example of a: partially-amortizing loan. fully-amortizing loan…

A: Amortization refers to the systematic repayment of loan which includes principal and interest…

Q: The definitions of default events are fairly standard, but what really constitutes a default? a. The…

A: Default refers to the failure to comply with the agreed terms of the agreement that the involved…

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 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: An installment note is a liability requiring a series of payments to the lender. True or False True…

A: Introduction: An instalment note is a legal obligation or liability that requires the lender to…

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: 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 Negative Amortizing, Constant Payment Mortgage (CPM) Loans?

A: Negative amortizing: Negative amortization is a financial concept that refers to a rise in a…

Q: Explain constant amortizing mortgage (CAM)?

A: It is otherwise called an amortizing mortgage, is one where the principal and monthly interest…

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: What does “assignment” mean and why would a lender want to assign a mortgage loan?

A: Mortgage assignments refer to a document that shows that a mortgage is transferred from the original…

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: In practice, interest rates do not stay the same over time unless by contractual obligation. Select…

A: Interest rate is the percentage amount of interest which is due per period and is calculated as a…

Q: What is MOST TRUE of DEFAULT RISK on a mortgage loan? It is always lower with lower interest rates.…

A: Default risk is the risk that a lender assumes when a borrower fails to make mandatory debt…

Q: what is difference between a bond and a term loan? what are the advantages of a term loan over a…

A: A bond is a fixed-income security that speaks to credit to a borrower (normally corporate or…

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: 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: Which of the following is correct about the effective-interest method of amortization? A. The…

A: Effective Interest method of amortization:-   The effective interest method of amortization is a…

Q: What is meant by a “purchase-money” mortgage loan? When could a loan not be a purchase-money…

A: A purchase-money mortgage loan is a loan that home sellers provide to the buyers of the home. Buyers…

Q: If an installment loan is paid in full before the maturity date, the full amount of interest on the…

A: Loan is the amount which borrower takes from lender on a certain cost which is called as interest.

Q: Explain Fully Amortizing, Constant Payment Mortgage (CPM) Loans?

A: Answer: Fully amortizing: A fully amortizing payment applies to a form of annual debt repayment.…

Q: 2 of Banks tend to never deduct interest at any other time than at the END of the loan. Select one:…

A: Simple Daily interest is computed and added to the principal amount that remains unpaid. Usually,…