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Need some help...been working on his for hours!!!?

Discuss everything relating to mortgages

Need some help...been working on his for hours!!!?

Postby lang75 » Mon Jul 09, 2012 7:08 am

Question 1 (Multiple Choice Worth 2 points)

A bank advertises an adjustable rate mortgage with the following terms:

15 year 6/1 ARM at 5% with a 2/6 cap structure

What are the maximum interest rates for the 7th year and for the life of the mortgage?

7th year: 6%; Lifetime: 6%

7th year: 6%; Lifetime: 11%

7th year: 7%; Lifetime: 11%

7th year: 7%; Lifetime: 6%

Question 2 (Multiple Choice Worth 2 points)

Emily obtains a $1,250,000 balloon mortgage for an investment property. The mortgage has terms of 30/5 at an interest rate of 3.5%. The monthly payment is $5,613.06. How much is the remaining balance after 5 years rounded to the nearest dollar?

$913,216

$1,041,667

$1,079,005

$1,121,213

Question 3 (Multiple Choice Worth 2 points)

A house sold for $600,000. The mortgage on the house is $400,000. The documentary stamp tax on the deed is $0.50 per $100 or portion thereof. How much is the documentary stamp tax on the deed?

$3,000

$300

$200

$2,000

Question 4 (Multiple Choice Worth 2 points)

Josephine has purchased her first home. Her choice of loans is shown.

Loan A Loan B
$200,000
25 year-fixed
2 discount point
M = $1,350.41 $200,000
25 year-fixed
0 discount point
M = $1,413.56


What is the difference between the total cost of principal, interest, and points for each loan?

$18,945.00

$14,945.00

$4,000

$63.15

Question 5 (Multiple Choice Worth 2 points)

A store owner used a balloon mortgage to purchase an investment property. The terms are shown:

Balloon Mortgage

$800,000
20/6 balloon
3.6% annual rate

Monthly Payment: $4,680.89
Balloon Payment: $618,846.58


What is the total cost of this balloon mortgage rounded to the nearest dollar?

$1,123,414

$618,847

$623,527

$955,871

Question 6 (Multiple Choice Worth 2 points)

The seller of a property has paid $2,700 in property taxes for the year in advance. The closing date of the sale is December 24 and the buyer owns the home on the closing day. How much does the buyer owe the seller in prorated property taxes? Assume the year has 365 days.

$2,700.00

$51.78

$7.40

$44.38

Question 7 (Multiple Choice Worth 2 points)

A mortgage is in the amount of $300,000. The origination fee is 0.7%, the intangible tax is 0.3%, and there are 2.3 discount points. Which of the following is the total cost of the origination fee, intangible tax, and discount points?

$6,900

$3,000

$9,900

$7,800

Question 8 (Multiple Choice Worth 2 points)

Marcia has a 25-year adjustable rate mortgage with a rate of 4.2% for the first 3 years. The monthly payment is $1,805.46. The amount of the mortgage is $335,000. What is the remaining balance after 3 years rounded to the nearest dollar?

$270,003

$292,822

$294,800

$310,761

Question 9 (Multiple Choice Worth 2 points)

An $800,000 balloon mortgage has terms of 30/5 with a 5% interest rate. What is the monthly payment rounded to the nearest dollar?

$2,222

$2,333

$4,295

$4,677

Question 10 (Multiple Choice Worth 2 points)

Brady has a 20-year fixed rate mortgage for $215,500 with monthly payments of $1,305.89. The annual interest rate is 4%. What is the total cost of the principal and interest for this loan rounded to the nearest dollar?

$172,400

$224,120

$313,414

$391,767
lang75
 
Posts: 828
Joined: Tue Mar 22, 2011 1:28 pm

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