The Loomis Friendly Savings and Loan offers to fund you a loan of
$55,000 for 30 years with monthly payments at a nominal interest rate of
10.25%. If they charge 2.5 points, what is the Annual Percentage Rate
(APR) that they are really charging?

10%
10.25%
10.50%
10.56%
None
of the above

Question
2

Multiple
Choice

(1.0000
points)

Question:

The Department of Veterans Affairs will guarantee loans to eligible
veterans up to what percentage of a property's value?

100 percent
97
percent
97
percent of the first $50,000 and 95 percent for higher amounts.
80
percent.
100
percent of the first $27,500 only.

Question
3

Multiple
Choice

(1.0000
points)

Question:

What is the amount advanced to the borrower on a $100,000 mortgage loan
paid monthly at 12% nominal interest for 30 years if the lender charges
4 points?

1,028.61
$104,000
$100,000
96,000
none
of the above

Question
4

Multiple
Choice

(1.0000
points)

Question:

What is the annual debt service on a 30 year 11% mortgage of $92,000 if
the loan is amortized monthly?

$10,120
$13,187
$13,514
none
of the above

Question
5

Multiple
Choice

(1.0000
points)

Question:

What is the correct annual sinking fund reserve for replacements for a
roof estimated to cost $20,000 in 15 years if the sinking fund account
pays 8% per annum?