1: T/F: The future value of an annuity calculation is used to calculate mortgage payments?
2: Which type of mortgage best allows a borrower to access the equity in their house?
a) subprime b) option arm c) jumbo mortgage d) reverse annuity mortgage
3: What is the payment for a 30 year mortgage for $180000 with monthly payments and an interest rate of 8%
? a) 1332.41 b) 553.32 c) 120.78 d) 1320.78 e) 1200.00
4: How much would it cost to pay 2 points on a $200000 mortgage?
a) 1000.00 b) 4000.00 c) 400000.00
5: what percentage will a bank use as the upper limit for debt payments (as a percentage gross income) including mortgage?
a) 43% b) 33% c) 28% d) 48%
6: T/F A mortgage over 15 years has a lower monthly payment than a 30 year mortgage?