11. In considering a three-year-one-year adjustable-rate mortgage (ARM), the interest rate will be fixed for how many years?
12. One reason why adjustable-rate mortgages (ARMs) have become popular has to do with the impact that they have on the interest rate risk that is borne by the parties involved. If interest rates were to rise on a level-payment mortgage (LPM) the interest rate risk of the loan would typically be borne by
13. Partially amortizing mortgage loans require periodic payments of principal, but are not paid off completely over the loans term to maturity. Instead, the balance of the principal amount is paid at maturity in what is commonly referred to as a
14. Recently, 15-year mortgages have increased in popularity amongst both borrowers and lenders. Which of the following groups of borrowers would typically be the least interested in a 15-year mortgage?
15. Required by the Truth-in-Lending Act, the annual percentage rate (APR) is reported by the lender to the borrower on virtually all U.S. home mortgage loans. The APR accounts for all of the following except
16. To encourage borrowers to accept adjustable rate mortgages (ARMs) rather than level-payment mortgages, mortgage originators generally offer an initial short-term introductory rate that is less than the prevailing market mortgage rate. This rate is referred to as a(n)
17. When fully amortizing loans call for equal periodic payments over the life of the loan they are known as
18. When lenders charge discount points (prepaid interest) on a loan, what impact does this have on the loans yield?
19. While a variety of loan terms are available in a lenders mortgage menu, the most common loan term on a level-payment mortgage is
20. With the recent popularity of adjustable-rate mortgages (ARM), lenders have begun to offer ARMs with different adjustment periods. Which of the following ARM choices will most likely have the highest initial rate?
MCQ Multiple Choice Questions and Answers on Mortgages
Mortgages Trivia Questions and Answers PDF
Mortgages Question and Answer
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