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Name: Homework 11

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Instructions:  

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Question 1   Multiple Choice (1.0000 points)
  Question: A hazard for borrowers on loans whose interest rates have been bought down for
 
    negative financial leverage.
inflated prices.
higher interest rates when the buydown period expires.
deflated prices.
all of the above.
 

 
Question 2   Multiple Choice (1.0000 points)
  Question: A lender seeking to appreciably lower payments for a doctor in residency so that he could qualify for the loan would use
 
    deferred interest mortgage(DIM)
flexible loan insurance program(FLIP)
variable interest rate mortgage(VIRM)
reverse annuity mortgage(RAM)
price level adjustable mortgage(ARM)
 

 
Question 3   Multiple Choice (1.0000 points)
  Question: A mortgage loan for $30,000, 9 percent, 30 years has been granted. How much is the first monthly interest?
 
    $270
$225
$150
$90
$75
 

 
Question 4   Multiple Choice (1.0000 points)
  Question: Credit investigation includes
 
    Employment investigation
Credit rating report
Savings and checking deposit verification
All of the above
None of the above
 

 
Question 5   Multiple Choice (1.0000 points)
  Question: Criteria used in residential loan underwriting include
I. evaluation of the property as collateral security
II. evaluation of borrowers likelihood of prompt repayment
 
    I only
II only
both I and II
neither I nor II